Promoting manufacturing industries and assembling complete products for supporting industries (SI) will create a premise for supporting industries to become suppliers and participate in the supply chain. It is important to invest in the downstream industry, which is a viable direction to help the industrialization industry break through.
Shaping is a key industry
Report submitted by the Government to the Standing Committee of the National Assembly, deputies of the National Assembly on the implementation of resolutions of the National Assembly on thematic supervision and questioning during term XIV and some Resolutions during term XIII field of Industry and Trade pointed out: SI is a fundamental industry, plays a very important role in deciding the transformation of economic structure, improving productivity and labor skills, added value and competitiveness. products and the quality of the Vietnamese economy.
Therefore, in recent years, the Ministry of Industry and Trade has advised the Government and the Prime Minister and directed drastically to enhance the role and position of the supporting industry in the spirit of Resolution No. 23-NQ / TW dated March 22, 2018 of the Politburo on the orientation to formulate a national industrial development policy to 2030, with a vision to 2045.
At the same time, the Ministry of Industry and Trade is implementing the establishment of 3 technical centers to support industrial development in 3 key economic regions in the North, the Central and the South. “ These centers will support industrial and industrial enterprises to support innovation, transfer pilot production technology, improve productivity and quality, create added value as well as participate. global supply chain ”- Report stated.
Besides, in recent years, SI enterprises have developed in both quantity and quality, improved production capacity and increasingly participated in global production chain. The number of enterprises operating in the supporting industry accounts for nearly 4.5% of the total number of enterprises in the processing and manufacturing industry, creating jobs for more than 600,000 workers, accounting for 8% of the total number of employees in the entire processing and manufacturing industry. net sales of production and business reached more than 900,000 billion VND, contributing about 11% of the total revenue of the processing and manufacturing industry …
Some Vietnamese component manufacturers have quite good capabilities in a number of fields such as manufacturing molds of all kinds; bicycle and motorbike components; standard mechanical components; power cable; plastic components – technical rubber; tires and tubes of all kinds. These products have met the domestic demand and are exported to countries around the world.
However, the report also mentioned that out of about 1,800 companies producing spare parts and components nationwide, only about 300 domestic enterprises participate in the production network of multinational corporations.
Regarding the capacity to organize production management and technical technology of the majority of Vietnamese supporting industries, the Government assessed that there are still many limitations. Until now, domestic enterprises have only provided about 10% of the domestic demand for supporting products. The gap between the requirements of multinational corporations and the capacity of domestic manufacturing enterprises to meet the requirements remains very large.
Focus on developing downstream industry
In order to develop Vietnam’s supporting industries in the coming time, the necessary solution is to review and build new mechanisms and policies in line with integration commitments to support industrial enterprises’ development; continue to have new policies in management and investment attraction to ensure FDI enterprises have the connection and technology transfer as well as create spillovers for domestic supporting enterprises.
In addition, the Government report mentioned that the need to continue to strongly develop downstream industries, including a number of industries such as the energy industry, the precision engineering industries as well as some mechanical industries. make. The capacity of Vietnamese industrial enterprises is low, the value added content and the competitiveness of domestic industrial products are not high. Accordingly, for the general solution to develop the downstream industry, first of all, the Government should have appropriate policies to protect the domestic market and create a healthy business environment to promote the development of production. domestic industrial products.
Specific measures that can be considered are having drastic and consistent policies and solutions to focus on targeted support for a number of Vietnamese enterprises in key downstream industries such as the automobile industry. , electricity – electronics, textiles and footwear become corporations of regional stature, creating a spillover effect and leading domestic supporting enterprises to develop; develop policies on import tax on flexible and suitable imported components and spare parts to help enterprises to reduce product costs and improve competitiveness compared to goods. import, targeting to export markets …
The report affirms that downstream industries have an important role in the development of supporting industries, as well as attracting multinational corporations to invest in large-scale projects in Vietnam.