Supporting industry: Expanding domestic market for sustainable growth

Untapped potential domestic market

Supporting industry has long been considered the “backbone” that helps increase competitiveness for the manufacturing industry, especially in the fields of automobiles, electronics, textiles, and footwear. However, the reality of development shows that most businesses in this industry still depend heavily on export orders, while the domestic market has not been properly exploited.

The domestic market with more than 100 million people, rapid urbanization, increasing consumer demand and industrial production should have become a solid "support" for supporting industry enterprises. But paradoxically, many industries still have to import components, raw materials, and spare parts instead of proactively using domestic supply sources.

The domestic market still has a lot of room for the supporting industry to exploit. Photo: Duong My

There are many reasons. Firstly , the scale of supporting industrial enterprises in Vietnam is still small, financial capacity is limited, making it difficult to invest in technological innovation and quality standards to meet market demand. Secondly , the connection between main manufacturing enterprises and domestic suppliers is not tight. Foreign-invested enterprises often choose supply sources from established global networks, with little priority given to Vietnamese enterprises. Thirdly , policies to encourage the development of the domestic market for supporting industrial products are still scattered, lacking connectivity between ministries, branches and localities.

This reality leads to a vicious cycle: small businesses have no output, making it difficult to invest in improving quality; while large manufacturing enterprises are not interested in domestic supply because of concerns about quality and progress risks. The domestic market has great potential, but has not really opened up for domestic suppliers to enter.

Solutions to expand domestic market for supporting industrial products

To break the “import dependence” situation, developing the domestic market for supporting industrial products should be considered a strategic task. First of all, it is necessary to build a stronger connection mechanism between foreign-invested enterprises and domestic enterprises. Multinational corporations operating in Vietnam must have a roadmap to increase the localization rate, prioritizing signing long-term contracts with domestic suppliers. At the same time, Vietnamese enterprises also need to proactively upgrade management, improve production processes, and meet international standards on quality, safety, and environment.

Mr. Vu Ba Phu, Director of the Trade Promotion Agency, Ministry of Industry and Trade emphasized: “ The domestic market is not only a support for businesses in the context of international fluctuations, but also a place to practice and improve competitiveness. If supporting industrial products conquer domestic consumers and manufacturers, they will certainly have the opportunity to step out into the world .”

Strengthening trade promotion to support widespread connection of domestic enterprises. Photo: Chinhphu.vn

Another important solution is to promote trade promotion activities in the domestic market. Not only stopping at fairs and exhibitions, it is necessary to organize specialized "supply - demand connection" programs, by industry, by production chain. This is a way to help supporting industry enterprises meet directly with large manufacturers, creating opportunities for real cooperation instead of just stopping at promotion.

Mr. Vu Ba Phu also affirmed: “ Domestic trade promotion must go one step ahead, creating a bridge for supporting businesses to participate more deeply in the value chain. When there is a regular and systematic connection, domestic businesses will have the opportunity to prove their capacity and gradually replace imported goods .”

In addition, financial and credit policies also play a key role. Without medium and long-term capital with reasonable interest rates, businesses will find it difficult to invest in machinery and technology. Therefore, there needs to be a specialized credit package for supporting industries, along with a credit guarantee mechanism to encourage banks to boldly lend.

In the long term, developing high-quality human resources is the decisive factor. Supporting industries require precise technical skills, supply chain management skills and understanding of international standards. Enterprises need to coordinate with universities and research institutes to train according to actual needs, instead of general training.

It can be seen that expanding the domestic market for supporting industries not only helps Vietnamese enterprises stand firm in the face of global fluctuations but also contributes significantly to the goal of sustainable growth. When supporting industrial products are consumed domestically, the supply chain will become shorter, costs will decrease, and risks will be lower. More importantly, the national industry will have a solid foundation to grow, without being too dependent on the outside.

Source: https://moit.gov.vn/tin-tuc/xuc-tien-thuong-mai/nganh-cong-nghiep-ho-tro-mo-rong-thi-truong-noi-dia-de-but-pha-ben-vung.html

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