The Ministry of Industry and Trade (MoIT) will pay greater attention this year to the implementation of projects manufacturing products in supporting industries (Photo: VNA) The COVID-19 pandemic has been a blow to the country’s economy andmanufacturing sector, triggering a constant shortage of materials along withdifficulties and congested delivery for finished products.
To address the problems, many Vietnamese firms are seeking domesticpartners in material production and supporting industries, in a bid to savecost and time and improve quality.
Furthermore, a host of free trade agreements (FTAs) have createdoptimal conditions for an influx of investment into Vietnam as investors try toaccess preferential tariffs.
Foreign enterprises operating in Vietnam have taken the initiative inrestructuring production value chains or switching to supporting industries,according to the MoIT.
In addition, businesses in the field have spared no effort to raisetheir quality and sharpen their competitive edge. Vietnam ranked eighth in the 2021 Agility Emerging Markets Logistics Index, up three places comparedto 2020.
The index is an annual snapshot of industry sentiment and a ranking ofthe world’s 50 leading emerging markets by size, business conditions,infrastructure, and transport connections.
At a factory in Vietnam (Photo: VNA) This year, the Vietnam Industry Agency under the MoIT is to reviewmanufacturing projects, especially major endeavours in industrial products forexport. It will join hands with relevant agencies in attracting investment,bolstering global production chains, and capitalising on trade agreements.
It will also carry out procedures for infrastructure investment for twocentres facilitating industrial development in the northern and southernregions, along with working with localities that possess advantages in this regard,to discuss appropriate policies.
These centres will help industrial producers and enterprises in supportingindustries boost innovation and technology transfer, improve productivityand quality, increase added value in their products, and take part in globalsupply chains.
Prime Minister Nguyen Xuan Phuc signed Resolution No.115 last year onmeasures to further propel supporting industries, setting out development goalsfor the next decade.
Vietnamese enterprises are to be able to produce highly-competitivesupport products, meeting 45 percent of essential needs for domestic productionand consumption and accounting for about 11 percent of industrial productionvalue by 2025.
About 1,000 enterprises are to be capable of direct supply to assemblyenterprises and multinational corporations, with domestic enterprises toaccount for about 30 percent by 2025.
By 2030, support products will meet 70 percent of demand and accountfor about 14 percent of industrial production value. Some 2,000 companies areto be capable of supplying directly to assemblers and multinationalcorporations by 2030.
Vietnamese businesses operating in supporting industries have beendeveloping in both quantity and quality in recent years, with improvedproduction capacity and increasing engagement in global production chains.
In a recent report submitted to the National Assembly StandingCommittee and legislators, the Government cited statistics showing thatcompanies in supporting industries account for nearly 4.5 percent of allmanufacturing and processing businesses and have created more than 600,000jobs, equivalent to 8 percent of the workforce in the manufacturing andprocessing sector. Their net revenue now tops 900 trillion VND (38.9 billionUSD), or about 11 percent of the sector’s total.
Some Vietnamese enterprises boast relatively good capacity in producingmoulds, bicycle and motorbike components, electrical cables, plastic and rubbercomponents, and tyres, meeting domestic demand and the requirements of foreignimporters.
The report noted that supporting industries play a decisive role inrestructuring the economy, improving workplace productivity and skills, andpromoting the competitiveness and quality of Vietnamese goods and the economy./.
It will also carry out procedures for infrastructure investment for twocentres facilitating industrial development in the northern and southernregions, along with working with localities that possess advantages in this regard,to discuss appropriate policies.
These centres will help industrial producers and enterprises in supportingindustries boost innovation and technology transfer, improve productivityand quality, increase added value in their products, and take part in globalsupply chains.
Prime Minister Nguyen Xuan Phuc signed Resolution No.115 last year onmeasures to further propel supporting industries, setting out development goalsfor the next decade.
Vietnamese enterprises are to be able to produce highly-competitivesupport products, meeting 45 percent of essential needs for domestic productionand consumption and accounting for about 11 percent of industrial productionvalue by 2025.
About 1,000 enterprises are to be capable of direct supply to assemblyenterprises and multinational corporations, with domestic enterprises toaccount for about 30 percent by 2025.
By 2030, support products will meet 70 percent of demand and accountfor about 14 percent of industrial production value. Some 2,000 companies areto be capable of supplying directly to assemblers and multinationalcorporations by 2030.
Vietnamese businesses operating in supporting industries have beendeveloping in both quantity and quality in recent years, with improvedproduction capacity and increasing engagement in global production chains.
In a recent report submitted to the National Assembly StandingCommittee and legislators, the Government cited statistics showing thatcompanies in supporting industries account for nearly 4.5 percent of allmanufacturing and processing businesses and have created more than 600,000jobs, equivalent to 8 percent of the workforce in the manufacturing andprocessing sector. Their net revenue now tops 900 trillion VND (38.9 billionUSD), or about 11 percent of the sector’s total.
Some Vietnamese enterprises boast relatively good capacity in producingmoulds, bicycle and motorbike components, electrical cables, plastic and rubbercomponents, and tyres, meeting domestic demand and the requirements of foreignimporters.
The report noted that supporting industries play a decisive role inrestructuring the economy, improving workplace productivity and skills, andpromoting the competitiveness and quality of Vietnamese goods and the economy./.
VNA
