Illustrative image (Photo: tapchicongthuong.vn) Hanoi (VNA) – The Ministry of Industry and Trade has advised the Government to take drastic actions to improve the role and position of support industry.
Accordingly, the Government’s Decree dated June 4, 2021 supplements several incentives regarding corporate income tax for support industry projects. It benefits firms with new and expansion projects before 2015, or those granted with certificates of incentives for support industrial manufacturing that will receive the highest tax incentives.
At present, support industry firms account for nearly 4.5 percent of those working in manufacturing and processing sector, earning nearly 39.8 million USD and contributing about 11 percent of the total revenue in the sector.
Several domestic spare part manufacturers have been able to meet demand at home and abroad. The domestic capacity of manufacturing support industry products and the rate of domestically-made items in several industries improved.
However, they also exposed shortcomings, such as limited manufacturing and financial ability, the shortage of workforce and technology, low product competitiveness due to high cost and poor quality.
Developing downstream industries is considered important for developing support industry or attracting multinational groups to Vietnam.
Producing and assembling end-products for the domestic support industry will be maintained and expanded, thus laying a foundation for support industry firms to join in the supply chain of end-product makers.
Such requires priority policies such as offering focused assistance, building technical standards to protect domestic manufacturers and consumers, as well as flexible and suitable policies on import tariffs on spare parts./
Accordingly, the Government’s Decree dated June 4, 2021 supplements several incentives regarding corporate income tax for support industry projects. It benefits firms with new and expansion projects before 2015, or those granted with certificates of incentives for support industrial manufacturing that will receive the highest tax incentives.
At present, support industry firms account for nearly 4.5 percent of those working in manufacturing and processing sector, earning nearly 39.8 million USD and contributing about 11 percent of the total revenue in the sector.
Several domestic spare part manufacturers have been able to meet demand at home and abroad. The domestic capacity of manufacturing support industry products and the rate of domestically-made items in several industries improved.
However, they also exposed shortcomings, such as limited manufacturing and financial ability, the shortage of workforce and technology, low product competitiveness due to high cost and poor quality.
Developing downstream industries is considered important for developing support industry or attracting multinational groups to Vietnam.
Producing and assembling end-products for the domestic support industry will be maintained and expanded, thus laying a foundation for support industry firms to join in the supply chain of end-product makers.
Such requires priority policies such as offering focused assistance, building technical standards to protect domestic manufacturers and consumers, as well as flexible and suitable policies on import tariffs on spare parts./
VNA
