Supporting industry: Need more 'legalized' policy

The limited competitiveness of domestic enterprises and suppliers is a bottleneck that prevents most supporting industry enterprises from participating in the global supply and production chain.

The limited competitiveness of domestic enterprises and suppliers is a bottleneck that prevents most supporting industry enterprises from participating in the global supply and production chain. The Government has issued Resolution 115/NQ-CP on solutions to promote the development of supporting industries and has been in effect for more than 2 years, but according to experts, in order to improve the level of domestic production autonomy. , it is necessary to have more policies to "legalize" this industry soon.

 

Workers of Dai Dung Commercial Construction Mechanical Joint Stock Company at An Ha Industrial Park, Binh Chanh District. Photo: Thanh Vu/VNA

Weak in ability

According to information from the Ministry of Industry and Trade, in the field of supporting industries, although there have been many advances with more than 5,000 enterprises, mainly in the mechanical industry, textiles, footwear, and components, nearly 90% of them are still small and medium enterprises.

Mr. Pham Thanh Tung, Department of Supporting Industry - Department of Industry (Ministry of Industry and Trade) said that the existing difficulty of Vietnamese supporting industry enterprises is that the localization rate of industries is still low. For example, the electronics industry is only 5-10%; automobile industry from 7-10%; 45-50% of textile and garment, leather and footwear industry. In terms of technology level, over 30% of enterprises said that they are still using manual control devices completely, over 50% have used semi-automatic equipment, just over 10% of enterprises have used equipment. automation, and less than 10% of enterprises use robots in their production lines.

"Vietnamese supporting industry enterprises still lack resources to innovate; they are not capable of providing components and spare parts with high technology content and complex techniques to meet the requirements to participate deeply in the industry. global production chain," said Mr. Tung.

Sharing the same view, Ms. Tran Thi Lan Anh, General Secretary of the Vietnam Confederation of Trade and Industry (VCCI), said that a survey by the General Statistics Office showed that most supporting industry enterprises have not yet applied the regulations. international standards, or common production management tools. Only about 20% of enterprises have ISO 9000 certification (quality management), 9% of enterprises have ISO 14000 certification (environmental management), and more than 20% of enterprises said that they have implemented 5S at their enterprises. . But other tools like Lean, 6 sigma, or TQM, TPM, the number of businesses applying is only about 1-2%.

Besides, there are still many challenges such as in terms of scale, experience, capacity, market share, brand... that require the efforts of many parties for the supporting industry to develop stronger, narrowing the gap between requirements. needs of the domestic industry, as well as of partners, multinational customers and capacity to meet.

Looking to countries like Korea, in order to support the supporting industry, at first, the Government of this country issued a special Law on components, spare parts and materials, which spent billions of dollars for supporting industrial enterprises. Or like Malaysia, this country also launched the Industrial Links Program (ILP), with 3 contents: Financial incentives, business linkages and a support package to provide a place to locate production, research and development. Research and develop, upgrade technology, develop export markets...

 

Mr. Nguyen Van Ket, Director of SKD Precision Mechanics Co., Ltd. said that, in Vietnam, there is a situation of "mechanical houses", because small businesses are swimming by their own source of customer relationships. investment is not in the right focus... In other countries, the state will focus on key industries and encourage and support businesses to invest and improve their qualifications... Therefore, businesses are looking forward to timely support from the state through policy tools to help domestic enterprises participate in domestic, regional and global value chains. At the same time, it is necessary to orientate strategies, build and focus appropriate resources to effectively implement specific strategies and programs...

Waiting for policy

In 2020, the Government issued Resolution 115/NQ-CP on solutions to promote the development of supporting industries; in which there are many practical solutions such as incentives to compensate for the difference in interest rates for enterprises in supporting industries and processing and manufacturing industries; building industrial development support centers; attracting FDI with high technology content…

However, in order to develop the domestic supporting industry in the coming time, the first and very important issue considered by experts is the early formulation of the Supporting Industry Law. Mr. Nguyen Hoang, Chairman of Hanoi Supporting Industry Business Association, Vice Chairman of Vietnam Supporting Industry Association, said that the Government needs to develop a Law on Supporting Industry and submit it to the National Assembly for promulgation in the coming time. soonest. Because when we have a good institutional foundation, it means that we will have the right path. Ministries, branches, central, local and associations have been oriented to support and accompany supporting industry enterprises.

"Besides, we also hope that the pilot policy on supporting industries will be born soon and can immediately support Vietnam's supporting industry enterprises in terms of capital, labor, factory infrastructure, etc. specialized industrial parks, as well as connecting output between Vietnam's supporting industry enterprises and multinational corporations present in Vietnam," said Mr. Nguyen Hoang.

Mr. Dao Phan Long, Chairman of the Vietnam Association of Mechanical Enterprises, said that the planning of policies to develop the supporting industry should be unified and transparent. To achieve this goal, the national policy system also needs to be consistent with the regulations of the playing field of partner countries, the region and on a global scale. We have had many policies to support businesses, but there is no specific development orientation for the processing and manufacturing industries, which industries are the spearheads and guidelines to direct state and private resources into the industry. that field. Therefore, the early formulation of the Law on Supporting Industry and the Law on Mechanics is very necessary. Because when all are "legalized", the Government's support policies for the industry will soon be implemented.

Currently, the policies proposed in the Industrial Development Law Project have been approved by the Government and submitted to the National Assembly Standing Committee for consideration and inclusion in the 2023 Law-making Program. The Ministry of Industry and Trade is absorbing them. opinions to report to the Prime Minister as soon as possible. The Ministry said that the development of the Law on Industrial Development will create a synchronous industry development tool, create a legal corridor to attract businesses to invest, develop industrial production in general and supporting industries. support in particular, promoting the building of an autonomous industry, contributing to the industrialization and modernization of the country...


According to Duc Dung (VNA)

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