A production line of electronic components at Suntech Vietnam Technology Co Ltd. (Photo: VNA) The target is part of a draft project on restructuring the industry and trade sector for 2021-2030.
The draft also aims to turn Vietnam into an industrialisedcountry with highly competitive industries, and among the world's top 15 exportersby the end of 2030.
The country's immediatetarget is to develop 20 products with strong international brands, tostrengthen its position in the global supply chain, and to bring the localisation ofproduction to 45 percent.
Thecountry's supporting industry, which remained underdeveloped and overly relianton imports, has been identified as a major weakness for Vietnam, especially inkey industries such as electronics, textile, leather and footwear,manufacturing and automobile.
The effecthas been made painfully clear since the pandemic as Vietnam's top suppliers ofparts, including China, the Republic of Korea and Japan, were hit hard byCOVID-19, causing severe disruptions to production in Vietnam.
In addition,over-reliance on outside supplies has crippled the development of indigenoussupporting industries while cutting deep into domestic firms' profitability.For example, the Southeast Asian economy relies on China and the Republic of Koreafor as much as 90 percent of the input materials for textile, footwear andelectronics. Experts have long raised concerns over the country's inability tocontribute more to product value, putting it at high economic risk in the eventlarge international corporations decided to move production elsewhere.
Illustrative image (Source: VNA) In order toaddress the issue, the MoIT has proposed a restructuring plan for Vietnam'sindustries with a focus on the development of supporting industries. Accordingto the ministry, significant progress had been made in the 2011-20 period withindustrial production accounting for around 27.45 percent of the country'stotal GDP annually.
The ministryadvised the government to focus on qualitative development instead ofquantitative and to take measures to improve productivity, one of the mainweaknesses of the economy. The ministry said by the end of 2030, industrialproduction is to account for 40 percent of total GDP, manufacturing value addedper capita over US$2,000 with a 45 percent contribution from high-techindustries.
The ministrysaid among the top priorities for the next ten years is how to restructure manyState-own enterprises under their own management, which have beenunderperforming and causing losses in the billions of dollars for decadesnow./.
The draft also aims to turn Vietnam into an industrialisedcountry with highly competitive industries, and among the world's top 15 exportersby the end of 2030.
The country's immediatetarget is to develop 20 products with strong international brands, tostrengthen its position in the global supply chain, and to bring the localisation ofproduction to 45 percent.
Thecountry's supporting industry, which remained underdeveloped and overly relianton imports, has been identified as a major weakness for Vietnam, especially inkey industries such as electronics, textile, leather and footwear,manufacturing and automobile.
The effecthas been made painfully clear since the pandemic as Vietnam's top suppliers ofparts, including China, the Republic of Korea and Japan, were hit hard byCOVID-19, causing severe disruptions to production in Vietnam.
In addition,over-reliance on outside supplies has crippled the development of indigenoussupporting industries while cutting deep into domestic firms' profitability.For example, the Southeast Asian economy relies on China and the Republic of Koreafor as much as 90 percent of the input materials for textile, footwear andelectronics. Experts have long raised concerns over the country's inability tocontribute more to product value, putting it at high economic risk in the eventlarge international corporations decided to move production elsewhere.
Illustrative image (Source: VNA) The ministryadvised the government to focus on qualitative development instead ofquantitative and to take measures to improve productivity, one of the mainweaknesses of the economy. The ministry said by the end of 2030, industrialproduction is to account for 40 percent of total GDP, manufacturing value addedper capita over US$2,000 with a 45 percent contribution from high-techindustries.
The ministrysaid among the top priorities for the next ten years is how to restructure manyState-own enterprises under their own management, which have beenunderperforming and causing losses in the billions of dollars for decadesnow./.
VNA
