Budget delay hampers industry promotion programs

Budget delay hampers industry promotion programs

The national industry promotion program has only been allocated about one-third of its total budget estimate of VND150 billion for 2021, hampering implementation of planned programs in many localities.

Many rural industrial establishments have benefited from industry promotion policies

According to the Agency for Regional Industry and Trade (ARID) under the Ministry of Industry and Trade (MoIT), in the first half of 2021, the agency performed various state management tasks, such as assigning the 2021 national industry promotion funding plan (phase 1) to localities and units; appraising documents, cost estimates and contracts with assigned units; developing industry promotion plans for 2022; building plans to inspect and supervise implementation of the national industry promotion projects in the northern, central and southern regions in 2021, and monitoring the development of handicraft enterprises.

For example, the Center for Industry Promotion and Development Consultancy No. 1 (Center 1) under the ARID has been assigned 11 types of industry promotion projects by the MoIT. So far, Center 1 has coordinated with relevant units to set up the projects and also formulated financial plans for the national industry promotion projects in 2022.

In general, ARID’s work in the first half of 2021 has been implemented effectively, easing difficulties and obstacles for production and business activities and ensuring social security amid the pandemic-hit period.

However, also due to impacts of the Covid-19 pandemic, some tasks have not been implemented as planned. In the meantime, only VND55.461 billion of the 2021 national industry promotion budget has been allocated, affecting the implementation of the year’s plan.

Given the above results, ARID has much work cut out for it in the second half of 2021. Accordingly, it will have to keep coordinating closely with units under the MoIT and localities to ensure progress of projects, promptly solving problems to avoid backlogs. Based on developments of the pandemic, the agency will adjust plans to organize a series of events like the conference on industry and trade sector or the exhibition on outstanding rural industrial products in three regions in 2021.

The ARID also asked the MoIT and the Ministry of Finance to submit additional budget estimates to the Prime Minister for early budget approval for the next phase of 2021 to ensure effective implementation of industry promotion activities in the financial year, especially to help rural industrial enterprises and establishments overcome negative impacts of Covid-19 for stability and development.

VietNam Economic News