Law being developed to promote supporting industry

Law being developed to promote supporting industry

While enterprises must be proactive in improving their capacity and finding orders, the Government’s support is essential, especially in terms of land, credit and tax.

Production at Vĩnh Phú Footwear Company, Phú Thọ Province. Vietnamese enterprises must focus on research and development (R&D) and improving their technical capacity to be able to meet requirements of buyers. — VNA/VNS Photo Tuấn Anh

A new law is being created to promote the development of core industries, including the supporting industry, according to Phạm Văn Quân, Deputy Director of the Industry Agency under the Ministry of Industry and Trade (MoIT).

Quân said at a forum on developing the supporting industry held by Công Thương (Industry and Trade) Magazine, that the law on foundational industries would promote the development of basic industries which supply inputs for other industries, including the supporting industry, besides new materials and chemicals.

A fund expected at 1 per cent of gross domestic product (GDP) was also being developed to support the development of part-supplying enterprises, he said.

The Government would adopt a more open policy approach and focus on post-check management to create favourable conditions for enterprises, Quân said, adding that promotion activities would be enhanced to enable domestic firms to seek opportunities to participate in the global supply chains.

According to Bùi Thị Hồng Hạnh, Deputy President of Việt Nam Association of Supporting Industries, Vietnamese enterprises must focus on research and development (R&D) and improving their technical capacity to be able to meet the requirements of buyers, adding that R&D remains a major difficulty for small and medium–sized enterprises (SMEs).

Local enterprises are also faced with the shortage of skilled labour force and difficulties in land and credit access.

 While enterprises must be proactive in improving their capacity and finding orders, the Government’s support is essential, she stressed, urging support in promoting land, credit and tax.

“Support must be specific and practical,” she said.

Vũ Đăng Khoa, general director of JK Vietnam Industrial Joint Stock Company, said it was critical that enterprises understand their technology capacity and clearly set the goals and roadmaps for participating in the global supply chains.

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