Vietnam keen to develop supporting industries: Deputy PM Hue

Tuesday, 2020-02-04 21:31:45
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Deputy PM Vuong Dinh Hue speaks at the conference. (Photo: VGP)
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NDO/VNA – Vietnam is keen to develop supporting industries and the Government has been working towards the goal of having 1,000 enterprises operating in this sector that are capable of supplying for assembling enterprises and multinational corporations in 2020, Deputy Prime Minister Vuong Dinh Hue said.

The Deputy PM made the affirmation at a conference on February 4 in the northern province of Hai Duong to launch a consultation programme for local enterprises involved in supporting industries.

Hai Duong is the first locality in the country to implement this programme, which is a joint effort of the Ministry of Industry and Trade, Hai Duong People’s Committee and Samsung Group of the Republic of Korea.

Deputy PM Hue said Vietnam also aims to raise supporting industries’ share in the entire industrial sector’s production value to 14% by 2030.

He stressed that supporting industries are the main factor in raising the value of the process-manufacturing industry, the driver of Vietnam’s economic growth in recent years. However, it is still difficult for local enterprises in these industries to join in the global supply chain due to their small scale, low technology and a lack of linkage among them as well as between them and foreign-invested enterprises.

To facilitate the development of supporting industries, the Government official required the Ministry of Planning and Investment to continue improving the investment and business environment, and the Ministry of Industry and Trade to review and devise development orientations for several key supporting industries.

He also asked the State Bank of Vietnam to consider designing more preferential credit packages for supporting industries, and instructed Hai Duong authorities to quickly adopt a master plan for developing supporting industries to 2025.

The Deputy PM asked the Samsung group to continue coordinating with the Ministry of Industry and Trade and local authorities in providing consultations to Vietnamese enterprises and assisting them in participating in global supply chains.

He pledged that the Vietnamese government will create favourable conditions for Samsung to early start its project to build a Research & Development Centre in Vietnam.

Minister of Industry and Trade Tran Tuan Anh informed the conference that his ministry and Samsung have organised many courses to train consultants in enhancing production capacity of supporting enterprises. He said this year, the ministry will work with a number of localities to build policies and implement measures to develop supporting industries in those localities, adding that local administrations should invest in human resources for the industrial sector in general and supporting industries in particular.

Secretary of Hai Duong province’s Party Committee Nguyen Manh Hien said the province is focusing on developing local supporting industries into a key link of global supply chains of multinational groups.

He reported that Hai Duong is home to 454 foreign-invested companies with total registered capital of US$8.4 billion.

According to the official, the province has many advantages regarding infrastructure and human resources in industrial development. It now registers 15,000 domestic firms with total capital of VND164 trillion (over US$7 billion).

Director General of Samsung Vietnam Choi Joo Hoo pledged to enhance collaboration with the Vietnamese government to expand training activities and share experience with Hai Duong in order to help the province’s supporting firms achieve global production standards. He said Samsung will coordinate with the Ministry of Industry and Trade to train 200 experts in moulding as from this year.

At the conference, the Hai Duong People’s Committee, the Ministry of Industry and Trade and Samsung Vietnam signed a Memorandum of Understanding on cooperation on a consultation programme targeting Hai Duong-based enterprises operating in supporting industries.

Under the deal, Samsung will select at least 15 enterprises to benefit from a three-month training programme on enhancing competitiveness.