Vietnam is a developing country, and it has lacked equipment andmaterials to improve infrastructure to develop a market for domesticconsumption and exports.
Therefore, Vietnam has imported a hugevolume of machinery, equipment and input material from Asian countriesin the region for many years like China, the Republic of Korea andJapan.
Now, the country needs a comprehensive solution and activeimplementation from ministries, sectors and provinces apart fromcities, enterprises and consumers to reduce dependence on imports.
Deputy Minister of Industry and Trade Do Thang Hai spoke about these issues.
*Howdoes the industry and trade sector restructure itself to actively getlocal input material and reduce dependence on imports?
To limitimports of input material, the industry and trade sector shouldrestructure itself by concentrating on the development of the supportindustry.
The sector should invest and have support to developproducts that can compete, including manufacturing mechanisms, textiles,garments, leather, footwear and electronic products.
Industryand enterprises, especially, should enhance processing of mineralproducts to limit exports of raw minerals, which would result in anincrease of Vietnam's natural resources.
The Ministry of Industryand Trade (MoIT) has revamped industrial sectors to increase capacity,quality and efficiency in industrial production instead of increasingquantity as before.
Industrial sectors would strive for reducingpercentage of processing products and instead develop key industrialproducts, to create a sound basis for industrialisation andmodernisation of the economy.
It would connect the processing industry with farming, forestry and seafood production and consumption.
Oneother important solution is that the State should have policies onattracting investment from large industrial groups around the world,including Samsung, Nokia and Intel, to develop satellite enterprises inthe support industry that produce input material instead of getting themimported.
*Many sectors have invested in production of materialsand sub-materials, such as the textile, garment and auto sectors. Howhave the sectors developed production of materials and sub-materials?
Vietnamhas encouraged domestic and foreign enterprises to invest in productionof cotton, fibre and cloth to create a textile and garment supplychain. This is being done to increase further value add to textile andgarment products and to avail opportunities in exports after signingtrade agreements, such as TPP, Vietnam – EU free trade agreement.
Thelocal garment firms have changed from being processors of products tooriginal design manufacturers of garments to increase the localisationrate of products.
Meanwhile, the auto industry has beensuccessfully producing passenger cars and lorries by themselves with alocalisation rate between 35 and 40 percent.
The cars and lorries have met 70 to 80 percent success in the local market and competed with ASEAN products.
However,production of auto components has not developed as expected because theproduction of auto and auto components is a global industry, so thelocal industry producing these components needs strategic partners tojoin the global supply chain.
The State should have policies toattract foreign investors to sectors which make auto components inVietnam. They also need to create favourable conditions for domesticfirms in producing auto components as sub-contractors of the foreignauto firms. That development would increase localisation of autocomponents and reduce imports.
*What do enterprises in theindustry and trade sector do to gain the highest efficiency and qualityin restructuring themselves and increasing domestic input material?
Togain efficiency in restructuring enterprises, the groups andcorporations should withdraw their capital from non-core business,especially from financial, insurance, banking and securities sectors.
Theyshould also review their ability in production and renew the technologythey use, as well as the products and services, and increase qualityfor sustainable development.
*How does the ministry supportenterprises in actively supplying local products to solve thedifficulties in production and business?
The domesticenterprises have faced difficulties in production and businesses due tothe economic crisis. Therefore, the ministry has promoted development ofdomestic production and the market, and encouraged domestic consumptionto reduce goods inventory.
The ministry will developdistribution systems, especially in remote and rural areas, and buildtrade marks for domestic products.
By the end of this year, theministry will implement solutions to increase operational efficiency ofeconomic groups and corporations managed by the ministry.
Theministry is also expected to submit a decree on development of supportindustry to the Government in the last quarter of this year.-VNA
Therefore, Vietnam has imported a hugevolume of machinery, equipment and input material from Asian countriesin the region for many years like China, the Republic of Korea andJapan.
Now, the country needs a comprehensive solution and activeimplementation from ministries, sectors and provinces apart fromcities, enterprises and consumers to reduce dependence on imports.
Deputy Minister of Industry and Trade Do Thang Hai spoke about these issues.
*Howdoes the industry and trade sector restructure itself to actively getlocal input material and reduce dependence on imports?
To limitimports of input material, the industry and trade sector shouldrestructure itself by concentrating on the development of the supportindustry.
The sector should invest and have support to developproducts that can compete, including manufacturing mechanisms, textiles,garments, leather, footwear and electronic products.
Industryand enterprises, especially, should enhance processing of mineralproducts to limit exports of raw minerals, which would result in anincrease of Vietnam's natural resources.
The Ministry of Industryand Trade (MoIT) has revamped industrial sectors to increase capacity,quality and efficiency in industrial production instead of increasingquantity as before.
Industrial sectors would strive for reducingpercentage of processing products and instead develop key industrialproducts, to create a sound basis for industrialisation andmodernisation of the economy.
It would connect the processing industry with farming, forestry and seafood production and consumption.
Oneother important solution is that the State should have policies onattracting investment from large industrial groups around the world,including Samsung, Nokia and Intel, to develop satellite enterprises inthe support industry that produce input material instead of getting themimported.
*Many sectors have invested in production of materialsand sub-materials, such as the textile, garment and auto sectors. Howhave the sectors developed production of materials and sub-materials?
Vietnamhas encouraged domestic and foreign enterprises to invest in productionof cotton, fibre and cloth to create a textile and garment supplychain. This is being done to increase further value add to textile andgarment products and to avail opportunities in exports after signingtrade agreements, such as TPP, Vietnam – EU free trade agreement.
Thelocal garment firms have changed from being processors of products tooriginal design manufacturers of garments to increase the localisationrate of products.
Meanwhile, the auto industry has beensuccessfully producing passenger cars and lorries by themselves with alocalisation rate between 35 and 40 percent.
The cars and lorries have met 70 to 80 percent success in the local market and competed with ASEAN products.
However,production of auto components has not developed as expected because theproduction of auto and auto components is a global industry, so thelocal industry producing these components needs strategic partners tojoin the global supply chain.
The State should have policies toattract foreign investors to sectors which make auto components inVietnam. They also need to create favourable conditions for domesticfirms in producing auto components as sub-contractors of the foreignauto firms. That development would increase localisation of autocomponents and reduce imports.
*What do enterprises in theindustry and trade sector do to gain the highest efficiency and qualityin restructuring themselves and increasing domestic input material?
Togain efficiency in restructuring enterprises, the groups andcorporations should withdraw their capital from non-core business,especially from financial, insurance, banking and securities sectors.
Theyshould also review their ability in production and renew the technologythey use, as well as the products and services, and increase qualityfor sustainable development.
*How does the ministry supportenterprises in actively supplying local products to solve thedifficulties in production and business?
The domesticenterprises have faced difficulties in production and businesses due tothe economic crisis. Therefore, the ministry has promoted development ofdomestic production and the market, and encouraged domestic consumptionto reduce goods inventory.
The ministry will developdistribution systems, especially in remote and rural areas, and buildtrade marks for domestic products.
By the end of this year, theministry will implement solutions to increase operational efficiency ofeconomic groups and corporations managed by the ministry.
Theministry is also expected to submit a decree on development of supportindustry to the Government in the last quarter of this year.-VNA
