Ministry working to promote growth of support industries
The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.
It has worked hard over the years to strengthen the enforcement and efficiency of State management over the building of policies for support industries, while enhancing the quality of statistics compilation to ensure the provision of timely, complete, and accurate information to the business community.
Amid the current situation, with supply and demand connectivity yet to be tight in Vietnam, the ministry has defined the compilation of statistics and a database on manufacturing and processing as key tasks.
As part of activities to help businesses in support industries and manufacturing and processing engage more deeply in production chains, the ministry has launched a data system on activities in Vietnam.
The system will provide data on more than 3,500 enterprises in the automobile sector, food processing, electronics, leather and footwear, and garments and textiles, contributing to forming a network of businesses in the field and helping businesses and investors remain updated on new policies and other information relating to industrial sectors in Vietnam.
Manufacturing and processing is also a key field for attracting FDI. In 2019 alone, Vietnam as a whole attracted 3,478 new projects with total capital of nearly 31.8 billion USD, with the manufacturing and processing industry accounting for the highest proportion, with capital of 21.6 billion USD, or 67.8 percent of the total.
The data system aims to facilitate links between Vietnamese suppliers and multinational corporations. Steps have also been taken to enhance the regulatory effectiveness, efficiency, and development of policies on support industries, improve the quality of statistics, and ensure the availability of timely, complete, and accurate data.
Considered as the backbone of the economy, manufacturing and processing is a key driver of growth for the national industrial sector. With an average annual growth rate of 10.6 per cent, manufacturing is a “bright spot” in Vietnam’s industrial sector in the context of the global economic downturn due to COVID-19.
According to Minister of Industry and Trade Tran Tuan Anh, the database is an important milestone in addressing the needs of a business-to-business (B2B) network to link local and foreign businesses. It will help businesses and investors seek information in a quick and accurate manner, facilitating investment matching and enhancing opportunities for cooperation between Vietnamese and foreign businesses as well as multinational corporations.
In the context of the COVID-19 pandemic, with direct trade activities having experienced many difficulties, the database will be even more efficient in helping businesses connect and seize the opportunities presented by new generation free trade agreements to which Vietnam is a party, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and, most recently, the EU-Vietnam Free Trade Agreement (EVFTA).
The ministry recently organised an online investment promotion conference to introduce the country’s business environment and available incentives to more than 1,000 Japanese investors.
Earlier, the Trade Promotion Agency under the Ministry of Industry and Trade and other relevant agencies held an online conference to introduce products from Vietnam’s support industries to Japanese companies.
According to Takeo Kakijama, Chief Representative of the Hanoi Office of the Japan External Trade Organisation (JETRO), Vietnam has long been an attractive destination for Japanese investors, primarily thanks to the incentives the country has offered to Japanese companies, especially in support industries.
Vietnam holds a major advantage no other regional country has: a large number of workers skilled in the Japanese language.
Labour costs and land rentals in Vietnam are both relatively low, and the country’s many free trade agreements make it attractive to foreign investors, he said.
While highly appreciating the solutions and policies set forth in the government’s Resolution No.115/NQ-CP on the development of supporting industries, Truong Thi Chi Binh,