Empowering the supporting industry enterprises

Developing supporting industries is considered one of the leading priorities the government is implementing to promote industrial development in general, contributing to facilitate the country's industrialization and modernization.
Supporting industries include industries that produce raw materials, accessories, spare parts, and semi-finished products to supply to manufacturing, processing, assembling, production materials or consumer products. In recent years, Vietnam's supporting industries are increasingly developing and playing an important role in the country's participation in the global supply chain as well as the global value chain.

At the conference "Deploying the consulting support program for businesses in the field of supporting industries in Hai Duong province" held on February 4, 2020 in Hai Duong, Deputy Prime Minister Vuong Dinh Hue affirmed that over the past years, with care and support in terms of mechanisms and policies, supporting industries in Vietnam have made great progress.

Statistics in 2018 show that the number of enterprises operating in supporting industries accounts for about 4.5% of the total number of enterprises in the manufacturing and processing industry (equivalent to about 0.3% of Vietnamese enterprises). This created jobs for more than 600,000 workers, equivalent to 8% of the total number of employees in the manufacturing industry with net revenue of production and business estimated at over 900,000 billion dong. This accounts for about 11% of the total revenue of the whole manufacturing and processing industry. The localization rate of the household electronics industry is 30-35% and the automobile and motorcycle supporting electronics industry is about 40%.

Manufacturing components at the Huyndai Thanh Cong Automobile Factory in Ninh Binh. Photo: VNP

Checking car frames at the Huyndai Ninh Binh automobile factory. Photo: VNP

Checking details of car painting at the Huyndai Ninh Binh Automobile Factory. Photo: VNP

The Huyndai Thanh Cong Automobile Factory in Ninh Binh ensures standardized assembling before discharging cars from the factory. Photo: VNP

On the other hand, the connection between domestic and foreign businesses is still loose. Supporting industry products are not diverse in type, design and pattern and they are of low quality at a high cost. Human resources, especially high-quality human resources, are  lacking and the labor force training at technical schools is outdated and not associated with production practice which therefore cannot meet requirements.

In this regard, Minister of Industry and Trade Tran Tuan Anh said that the development of supporting industries has significance to the economic structure transformation and economic competitiveness of Vietnam. Recognizing the importance of developing supporting industries in the past, the government, ministries, and other agencies have issued many regulations to promote the development of supporting industries. Development support and preferential policies for the supporting industries has shown initial effects, contributing to promoting industrial development in the country.

The development of supporting industries is considered one of the top priority policies of the Government to promote industrial development, contributing to speeding up the process of industrialization and modernization of the country. The government has issued many practical documents to promote the development of supporting industries and specifically about solving difficulties and problems facing those enterprises. These include Decree No. 111/2015/ND-CP of the government on the development of support industries, Decision No. 68 /QD-TTg dated January 18, 2017 by the Prime Minister approving the development program for support industries from 2016 to 2025.

Minister Tran Tuan Anh emphasized that being aware of the role and its importance as well as the shortcomings and limitations of supporting industries in recent years. Following the firm leadership of the government, the Ministry of Industry and Trade coordinated with other ministries and agencies to implement several measures to promote the development of supporting industries as well as enhance the competitiveness of Vietnam's supporting industries. One of the solutions is to strengthen coordination in communication and consultancy to support Vietnamese enterprises in the field of supporting industries in production improvement and product quality improvement.

“One of the key partners of the government and the Ministry of Industry and Trade to implement this program is Samsung Group. Through consultant training programs, organized by Samsung Vietnam in cooperation with the Ministry of Industry and Trade, a series of Vietnamese consultants have graduated from training courses and have in fact been effective in the consulting work for supporting industry enterprises to improve qualifications and production capacity. They also want to meet standards when participating in global supply chains of Samsung as well as FDI enterprises,” said Minister Tran Tuan Anh./.

Story: Tat Son   Photos: VNP

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