Seven Major Measures for Developing Supporting Industries in Vietnam

On August 10th, the Vietnamese central government website reported that the government recently released Resolution 115/NQ-CP on promoting the development of supporting industries. The resolution proposes that by 2030, supporting industrial products will meet 70% of domestic production and consumption needs; About 14% of industrial output value; In Vietnam, approximately 2000 companies are able to directly supply products to assemblers and multinational corporations.

Specific goals in the field of spare parts: The development of metal spare parts, plastic and rubber spare parts, as well as electrical and electronic spare parts, aims to meet the goal of meeting 45% of the spare parts demand in the industrial sector in Vietnam by the end of 2025; By 2030, we will meet 65% of domestic demand and increase the promotion of product production in various fields serving the high-tech industry.

Supporting industries for textile, clothing, and leather footwear: Develop the production of raw and auxiliary materials for textile, clothing, and leather footwear. By 2025, achieve the production of high value-added products and export services. The domestic supply of raw and auxiliary materials for the textile industry will reach 65%, while the supply of leather footwear will reach 75-80%.

High tech supporting industries: Develop production materials, professional supporting equipment, software, and services that serve the high tech industry; Develop an enterprise system that provides professional auxiliary equipment and supports technology transfer in high-tech industries. Establish a mechanical maintenance and repair enterprise that meets international standards and serves as a prerequisite for the development of equipment and software production enterprises in this field. Establish a research and development and production system for new materials, especially electronic materials.

In order to achieve the above goals, the Vietnamese government has proposed seven measures to promote the development of supporting industries.

1、 Improve mechanisms and policies: Develop, improve, and effectively carry out special policies and mechanisms for supporting industries and other priority development processing and manufacturing industries (preferential and supportive in accordance with Vietnam's Investment Law), ensuring favorable conditions for the development of supporting industries. At the same time, formulate and implement effective policies for developing the raw material industry and expanding the manufacturing and assembly processing industry market for complete products, Lay the foundation for modernization and sustainable industrialization.

2、 Ensure and effectively mobilize resources to develop supporting industries: deploy, ensure and mobilize effective resources, implement investment policies for developing supporting industries and prioritizing the development of processing and manufacturing industries. On the basis of complying with laws and meeting local economic development conditions, enhance the role of the local government and encourage local investment resources to implement policies, programs, and activities to support supporting industries and prioritize the development of the processing and manufacturing industry.

3、 Financial and credit solutions: continue to implement preferential interest rate policies to support short-term credit loans for enterprises in supporting industries, priority development of processing and manufacturing industries, and other fields; The government uses central budget, local finance, ODA assistance, and foreign preferential loans to provide interest rate subsidies for medium - and long-term loans used by enterprises for production projects in the priority development supporting industrial product catalog.

4、 Developing domestic value chains: By attracting effective investment and promoting the integration of Vietnamese enterprises with multinational enterprises, domestic production and assembly enterprises, creating opportunities to form and develop domestic value chains; Establish centralized supporting industrial parks and create industrial clusters. Develop the raw material industry to increase the autonomy of producing raw materials, reduce dependence on imported raw materials, increase the added value of domestic products, enhance product competitiveness, and position Vietnamese enterprises in the global value chain.

At the same time, we will promote the development of a complete product production and assembly industry, with a focus on supporting Vietnamese enterprises that prioritize the development of industrial manufacturing to become regional groups, forming a radiation effect, and leading the development of auxiliary industrial enterprises in accordance with the spirit of the Political Bureau's Resolution 23-NQ/TW on the direction of national industrial development policies from 2030 to 2045.

5、 Develop and protect the market: Promote the development of domestic and international markets to promote the development of supporting industries and priority processing and manufacturing industries. Specifically, on the principle of ensuring economic benefits, we will prioritize the development of solutions for processing and manufacturing industries to ensure the scale of the domestic market; Develop and implement an appropriate system of industrial norms and technical standards to protect domestic production and consumers; According to international conventions and practices, strengthen the quality inspection of imported industrial products, and use technical barriers to reasonably protect the domestic market. At the same time, seek and expand overseas markets on the basis of fully utilizing signed free trade agreements; Take measures to support supporting supporting industries and prioritize the development of processing and manufacturing industries, and effectively participate in free trade agreements; Actively eliminate obstacles and combat monopolies and unfair competition; Develop modern business and trade models.

6、 Improving the competitiveness of supporting industrial enterprises: Based on development needs, goals, and existing resources, utilizing central and local mid-term investment capital to construct and effectively operate regional and local industrial development support technology centers, supporting supporting supporting industries and prioritizing the development of processing and manufacturing enterprises for innovation, research and technology transfer, improving productivity, product quality, and competitiveness, and creating opportunities for deep participation in global production chains. Establish mechanisms and policies to support and prioritize financial, infrastructure, and material facilities, and enhance the ability of regional technology and industry development support centers to support regional industrial development. Each regional industrial development support technology center should play a connecting role with local centers, in order to form a common ecosystem of technology and industrial production.

In addition, we need to improve the technological capabilities of supporting industries and priority development processing and manufacturing enterprises, and make breakthroughs in industrial foundation, technology transfer, and technology absorption; Strengthen domestic and international cooperation in research, development, scientific and technological applications, purchase and transfer of technological products, and other fields; Promote the commercialization of scientific and technological research products; Strengthen the mechanism of public-private cooperation in implementing technological innovation, research and development projects.

At the same time, through national skill enhancement plans and programs, promote the connection between training institutions and enterprises, education and human resource markets, develop management systems and ensure the quality of vocational education, implement modern and streamlined professional management models, adopt international standards and information technology applications, promote international cooperation in training and human resource development, develop evaluation systems, and issue national vocational skill certificates, Especially for important job skills in supporting industries.

7、 Information and communication, statistical databases: establish and improve a database of supporting industries and prioritized development of processing and manufacturing industries, promoting the connection between Vietnamese suppliers and multinational corporations; Improve the effectiveness and efficiency of national management, and formulate policies for supporting industries; Improve statistical quality and ensure timely, complete, and accurate information. Promote the promotion of extensive and in-depth support for supporting industries and prioritized development of processing and manufacturing industries, in order to arouse the interest of leaders and cadres at all levels, fields, and local levels, as well as the entire society, in developing supporting industries and prioritized development of processing and manufacturing industries, and to change and enhance awareness and sense of responsibility.