Developing supporting industries: Policy foundation creates momentum for new breakthroughs

(Chinhphu.vn) - The Ministry of Industry and Trade is reviewing and perfecting the system of mechanisms and policies to create the most favorable conditions for supporting industry enterprises. The focus is on shifting from pre-inspection to post-inspection, minimizing administrative procedures, and increasing decentralization to localities.

Mr. Pham Van Quan, Deputy Director of the Department of Industry ( Ministry of Industry and Trade ), shared at the seminar - Photo: Organizing Committee

After nearly a decade of implementing the Supporting Industry Development Program under Decision No. 68/QD-TTg in 2017 of the Prime Minister , Vietnam's supporting industry has recorded important steps forward, establishing an increasingly clear position in the domestic and international industrial value chain. These results come not only from the self-efforts of enterprises but also from the support of state management agencies, localities and industry associations.

Business growth, quality improvement

At the seminar "Developing supporting industries: Lessons and directions" organized by Industry and Trade Magazine on the morning of October 20, Mr. Pham Van Quan, Deputy Director of the Department of Industry (Ministry of Industry and Trade) said that if in the early stages when Decree 111/2015/ND-CP was newly issued, Vietnam only had a few hundred enterprises operating in the field of supporting industries, now that number has exceeded 6,000 enterprises. Along with the growth in quantity, the capacity and quality of enterprises have also made significant progress. Many domestic enterprises have been capable of becoming tier 1 and tier 2 suppliers for large corporations such as Samsung, Toyota, Honda..., gradually participating more deeply in the global supply chain.

Mr. Quan added that the Ministry of Industry and Trade has organized more than 80 seminars, trained more than 2,000 businesses, supported nearly 700 units to participate in technology transfer and learn advanced production models. Trade promotion programs, fairs and exhibitions at home and abroad have created opportunities for Vietnamese businesses to connect with international partners, promote production capacity and seek new orders.

From the business perspective, Ms. Bui Thi Hong Hanh, Vice President of the Vietnam Association of Supporting Industry Enterprises (VASI), said that the supporting industry business community has grown strongly in both scale and quality. While in the past, most businesses were passive, "doing whatever was ordered", now many units have proactively researched products, upgraded processes, clearly defined target market segments and technical standards to participate in the supply chain of FDI corporations.

Some domestic enterprises have produced small, sophisticated components with high added value, showing that technological capacity is gradually being consolidated. VASI Association currently has nearly 400 official members, with more than 700 small-scale enterprises being encouraged to participate. Ms. Hanh affirmed that the spread of innovative thinking, proactive connection and improvement of quality standards are positive signals for the industry in the new period.

However, she also pointed out some inherent limitations such as weak R&D capacity, lack of high-quality technical human resources and difficulty in accessing industrial land and capital for machinery investment. To overcome these, VASI is implementing many activities to support businesses: Connecting online and offline, organizing supply and demand exhibitions, skill competitions, opening branches in Japan to promote trade and support the export of components and detail assemblies to international markets.

Ms. Bui Thi Hong Hanh, Vice President of the Vietnam Association of Supporting Industry Enterprises (VASI), said that the supporting industry business community has grown strongly in both scale and quality - Photo: BTC

Local and business initiative

At the local level, Ms. Do Viet Hong, Head of the Industrial Management Department, Department of Industry and Trade of Da Nang City, said that the City has quickly concretized the Central Government's policy by issuing Resolution No. 20/2016/NQ-HDND and then Resolution 53/2021/NQ-HDND, stipulating the level of support for investment in machinery and equipment up to 2 billion VND/enterprise. The City also focuses on attracting investment in the fields of mechanical engineering, electronics, textiles - footwear with the goal of forming a supporting industrial cluster associated with the Chu Lai open economic zone and the Thaco Industries ecosystem.

After the merger of Da Nang - Quang Nam, the scale and industrial potential of the new city has been significantly expanded with a system of 20 industrial parks, 60 industrial clusters, 2 economic zones and 3 concentrated information technology zones. This is an important foundation for Da Nang to develop supporting industries to serve high-tech industries, aiming for double-digit growth in the coming years.

Representing the manufacturing sector, Mr. Vu Dang Khoa, Deputy General Director of JK Industrial Joint Stock Company, shared his nearly 20 years of experience participating in the global supply chain in the field of motorcycle and automobile spare parts. According to him, it is important for businesses to clearly identify the "destination" in the supply chain, thereby investing in appropriate technology and standards. Mr. Khoa emphasized that to take advantage of the opportunity to expand the market, Vietnamese businesses should not only produce individual components but also need to focus on producing component clusters to both reduce tolerances and increase product value. The domestic market still has a lot of room, but businesses need to boldly think about exporting and participating more deeply in the global supply chain.

Perfecting institutions, creating favorable conditions for businesses

From the perspective of state management, Mr. Pham Van Quan said that the Ministry of Industry and Trade is reviewing and perfecting the system of mechanisms and policies to create the most favorable conditions for supporting industry enterprises. The focus is on shifting from pre-control to post-control, minimizing administrative procedures, and increasing decentralization to localities. The Ministry is also proposing to establish an Industrial Development Support Fund with a scale equivalent to 1% of GDP to concentrate resources to support enterprises.

In parallel, the Ministry of Industry and Trade is also drafting the Law on Key Industries, in which supporting industries are identified as one of the five strategic industries, along with new materials and chemicals. This will be an important step for Vietnam's supporting industries to transform from "support" to "foundation" of national production.

Anh Tho

Source: https://baochinhphu.vn/phat-trien-cong-nghiep-ho-tro-nen-tang-chinh-sach-tao-da-cho-dong-luc-but-pha-moi-102251020154840443.htm