Seminar discusses spurring support industry
A workshop was held on August 21 to enhance linkages between domestic and foreign businesses and boost the development of the support industry in service of six prioritised industrial sectors.
Manufacturing cars and spare parts is one of the prioritised sectors. The others are electronics, agricultural machinery, agricultural and seafood processing, ship building, and the environment and energy conservation (Photo: VNA)The Central Institute of Economic Management (CIEM) held a workshop on August 21 to enhance linkages between domestic and foreign businesses and boost the development of the support industry in service of six industrial sectors prioritised in Vietnam’s modernisation strategy within the framework of Vietnam-Japan cooperation.
Speaking at the Hanoi event, CIEM Deputy Head Nguyen Tue Anh said the strategy through 2020 identifies environmental and energy-saving sectors among the six priorities to meet the increasing demands for environmental protection and energy conservation.
According to her, the support industry plays an important role as it supplies components and materials serving the two sectors.
Do Thi Thuy Huong from the Vietnam Electronics Business Association (VEBA) said the electronics support industry is mainly driven by foreign direct investment (FDI) businesses included in the available supply chain of final equipment producers.
Very few Vietnamese enterprises have the capacity to supply spare parts and services to FDI firms operating in the country, she said.
The domestic support industry has fallen short of expectations as it has failed to meet the demands of original producers, resulting in low added value of the country’s electronics sector in comparison with that of other nations worldwide, Huong said.
Sharing her views, Dr. Nguyen Dinh Anh said incentives for the support industry remain monotonous and funding is limited in terms of both scale and accessibility.
He underlined the need to revamp preferential policies, explaining that it is impossible to boost the support industry with such policies, especially in the six prioritised sectors, and create a linkage between Vietnamese and Japanese businesses as set in the strategy.
Many suggested the State build a full legal framework favourable for the industry as well as businesses participating in this field, and finalise and issue the Government’s decrees on the sector.
The State should enhance management of environmental protection and energy conservation in order to create output markets for the environment, energy-saving and support industries, they said.
The VEBA proposed tax exemptions for materials and import equipment to serve the production of key mechanics items and the exemption of corporate income tax and land lease fees for projects that supply support products to high-tech sectors.-VNA
You should also see
Vietnam attends international security meeting in Russia
A Vietnamese delegation led by Minister of Public Security General To Lam is attending the 12th International Meeting of High Representatives for Security Issues in Russia’s St. Petersburg city from April 23-25.
See more
Business
Labels on foods exported to Singapore must be accurate: Trade counselor
Counsellor Cao Xuan Thang, head of the Vietnam Trade Office in Singapore, has advised Vietnamese exporters to pay attention to labeling pre-packaged food products to ensure their credibility and image of businesses when exporting to the Singaporean market.
Business
April 25 gold bullion auction cancelled
The State Bank of Vietnam (SBV) has announced that it canceled the gold bullion auction scheduled for April 25 morning as only one business submitted its bidding form.
Business
High airfares create chance for short-distance trips for Reunification Day holiday
Due to a hike of air ticket prices for domestic flights, Vietnamese tourists are turning to short-distance trips for the upcoming National Reunification Day (April 30) and May Day (May 1) holidays.
Business
Phu Yen, Ninh Thuan attractive to energy project developers
The south-central coastal provinces of Phu Yen and Ninh Thuan have become attractive destinations for investors operating in the energy industry thanks to great potential for renewable energy development.
Business
Petrovietnam posts 9-billion-USD revenue in Q1
The Vietnam National Oil and Gas Group (Petrovietnam) saw total estimated revenue of 231 trillion VND (9 billion USD) from production and business activities in the first quarter of 2024, exceeding the set quarterly plan by 33% and up 19% year-on-year, head a conference held by the group recently.
