The Ministry of Industry and Trade (MoIT) is drafting a new decree on developing the supporting industry with more attractive incentives and transparent stipulations with the aim of creating a breakthrough for the sector, according to a senior official.

Truong Thanh Hoai, Head of the MoIT’s Heavy Industry Department disclosed this during a recent interview granted to the Vietnam News Agency.

He said the new decree will focus on policies for industrial parks and clusters, technical and technological research, application and transfer, human resource training, development funds and foreign investment attraction in the field of supporting industry.

The official added that there will be a national programme designed specifically to help domestic supporting enterprises connect with potential customers.

He noted that as most domestic supporting enterprises have a low starting point, the State will continue to furnish the sector with assistance in terms of capital, infrastructure, production technology, workforce training and market development, so as to help them to make a breakthrough in the time ahead.

Hoai underlined that at present, only a small number of local makers are able to meet multi-national corporations’ requirements of stable quality, on-schedule delivery and reasonable price.

He stressed that beside the State’s support, the business community should make stronger efforts to enhance their capacity.

Vietnam currently has 1,400 enterprises operating in supporting industries that manufacture electrical, electronic, metal and rubber components and accessories. However, their limited production capacity has forced manufacturers to look for foreign suppliers, leading to the country's prolonged trade deficit in industrial production in previous years.

Vietnam had to import a wide range of components and accessories worth 53.1 billion USD last year, and that number is expected to jump to 67.6 billion USD this year.-VNA