Supporting industry enterprises are witnessing huge opportunities from Vietnam joining free trade agreements - Illustrative image (Photo: VNA) Hanoi (VNA) - Supporting industryenterprises are witnessing huge opportunities from Vietnam joining free tradeagreements and more capital flowing into the country.
According to the Government’s master plan on thedevelopment of supporting industries to 2020 and vision to 2030, Vietnam willdevelop three key areas: spare parts, supporting industries for leather,footwear, and apparel, and high-tech industry.
Resolution No 115/NQ-CP on supporting industrydevelopment measures contains a goal that, by 2030, the local supportingindustry will meet 70 percent of demand in domestic production and consumptionand account for around 14 percent of industrial production value. Some 2,000firms will be capable of directly supplying items to assembly enterprises andmultinational groups in the country.
To meet the goal, the Government has set out seven measuresto develop supporting industries, including fine-tuning mechanisms andpolicies, ensuring and effectively pooling resources for supporting industries,financial and credit solutions, developing domestic value chains and markets, improvingthe capacity of supporting industry enterprises, and building statistics anddata.
As Vietnam has joined the Regional ComprehensiveEconomic Partnership (RCEP) and other free trade agreements, demand forproduction and trade as well as links between domestic and foreign firms aresubstantial.
Chairman of the HanoiSupporting Industries Business Association Nguyen Hoang said that, over recent years,many supporting industry enterprises have supplied items to major multinationalgroups and foreign businesses in Vietnam such as Canon, Samsung, Toyota, and Honda,and also exported to partners worldwide.
General Director of the HikariVietnam Production and Trading Company Ltd, Nguyen Duc Cuong, said most firms havefaced difficulties, both directly and indirectly, due to COVID-19. These maycontinue this year but positive signs remain as Vietnam’s economy is growing,thus making it easier for the country to attract foreign investment and offeropportunities to domestic companies.
Illustrative image (Photo: VNA) If domestic supporting industry enterprises can seizethe opportunities, they could quickly join global supply chains, he said.
Meanwhile, a representative from the Century SyntheticFiber Corporation said orders from manufacturers in the Republic of Korea,Thailand, Japan, Taiwan (China), and the US, as well as foreign companies inVietnam, have increased since last year thanks to disrupted supply chains inChina caused by COVID-19.
Cuong believes that only enterprises with long-termbusiness plans, good governance, and strong links will prosper./.
VNA
