To create a market for mechanical development enterprises (DN), in which the State plays the role of “midwife” for enterprises, promoting a contingent of mechanical enterprises. Research on new mechanisms and policies to open the market, remove difficulties in developing mechanical production …
The above content was given by the mechanical enterprises at the Consultation Conference on a number of Vietnamese mechanical development policies (2021 -2035) held by the Vietnam Mechanical Association on October 9 in Hanoi.
According to Mr. Dao Phan Long – Chairman of the Vietnam Mechanical Association, which is considered a key industry, is the foundation and driving force supporting other industries to develop, but for many years, mechanical enterprises Vietnam is still struggling to find ways to survive and develop. “ Over the years, a series of limitations and weaknesses from management mechanisms and policies as well as from the enterprises themselves have made the mechanical engineering industry rather fuzzy development, failing to meet the requirements. “- Mr. Dao Phan Long acknowledged.
Suggesting policies and solutions for industrial production supporting the mechanical industry, the representative of the leaders of Vietnam Engine and Agricultural Machinery Corporation – (VEAM) emphasized that in order for the mechanical industry to develop, it is necessary to Changing the corporate income tax policy for automobile manufacturing and assembling enterprises, the State should have regulations to encourage FDI enterprises to use domestic supply as regulated the percentage of corporate income tax reduction according to the rate % use domestic supply. For example, automobile production and assembly has a localization rate of 30%, corporate income tax is reduced by 30%.
In addition, there are regulations that give priority to the use of domestically manufactured mechanical products in public investment projects; Amend the policy of import tax policy on spare parts and spare parts used for production and assembly of auto parts and components of auto parts manufacturers in the direction of reducing import tax to 0% to 5% for components. accessories used to assemble auto spare parts. “ The State has orientation of preferential policies on corporate income tax, import and export tax for large-scale automobile production and assembly projects that are the output of auto parts supporting industry. direction to encourage the use of domestic details ”- proposed by VEAM leaders.
In addition, the constraints in the bidding mechanism make many Vietnamese mechanical enterprises unable to participate in domestic projects and works and lose at home.
Sharing about this issue, Mr. Nguyen Duong Hieu – Chairman cum General Director of Lidovit Industry and Trade Joint Stock Company, said to participate as a contractor to supply screws for the Metro project in the city. In Ho Chi Minh City, the company must go through a Japanese enterprise. “ Cannot become a direct contractor, required to be a subcontractor of a subcontractor. Accordingly, the biggest difficulty of the mechanical enterprise is the market and the output for the product “- Mr. Nguyen Duong Hieu said.
In addition, the current market development policy is not clear, there are no mandatory localization requirements in projects, projects or enterprises, so it cannot protect the domestic market. .
Focus on policy removal
With the above problems, mechanical enterprises think that in order to develop the mechanical industry, apart from the efforts of enterprises, it is necessary to have the hands of the State through a synchronous and stable policy system. new sustainable development. Accordingly, it is necessary to have a good resolution for Vietnamese mechanics, this is also the expectation of businesses, those working in the foundation industry, the backbone of the economy.
To overcome the shortcomings hindering the development of Vietnam’s mechanical engineering, the Vietnam Mechanical Association recommends that in the coming years, Vietnam needs to invest more in infrastructure and increase public investment.
Accordingly, the Government should also have policies to encourage the production of a number of materials for the mechanical engineering industry that we are dependent on abroad.
Vietnam Mechanical Association proposes to have preferential policies both for project owners or investors using domestic mechanical products. Interest rate incentives should comply with the method of subsidizing interest rates for businesses. Proposing a stable difference of 5% / year. The payback period for mechanical investment projects is 1.5 times longer than other projects, namely 10-12 years.
On that basis, it is necessary to give incentives to attract FDI in the current mechanical manufacturing sector, and should apply immediately to domestic mechanical enterprises. Ddoognf time, reconsider the VAT rate regulation for mechanical production instead of the current tax exemption or reduction.
Regarding the supporting industry for mechanical production, the Mechanical Association affirmed that it is necessary to have more regulations on the content of domestic production of over 30% of products to enjoy the incentives of supporting industries. .
Recognizing the comments and suggestions of mechanical enterprises, the Vietnam Association of Mechanical Enterprises will continue to synthesize opinions for the 2 Decrees amending the content of a number of articles of Decree No. 111/2005 on development. supporting industries and a draft Decree on key mechanical product development 2021-2035 are being drafted by the Ministry of Industry and Trade to submit to the Government for consideration.