The Ministry of Industry and Trade (MoIT), in conjunction with the International Finance Corporation (IFC) of the World Bank Group, with funding from the Australian Department of Foreign Affairs and Trade, and the Swiss State Secretariat for Economic Affairs, debuted a database system on June 19 that features the nation’s manufacturing and supporting industries.

Minister of Industry and Trade Tran Tuan Anh gives a speech at the launch
ceremony of database system of processing and manufacturing industries

During his speech at the launch ceremony, Minister of Industry and Trade Tran Tuan Anh highlighted the launch of the new database system as a significant milestone in addressing the need to form a network that can connect domestic and foreign businesses together. 

This system will serve to allow firms and financiers to find information in a rapid and accurate manner, therefore meeting the need to boost investment connectivity, along with co-operation opportunities between Vietnamese, FDI enterprises, and multinational groups.

“Especially, in the context of direct trade activities facing numerous difficulties due to the novel coronavirus epidemic outbreak, this system will further promote its role in helping businesses connect and seize opportunities from new generation free trade agreements in which Vietnam has participated in such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or most recently the EU-Vietnam Free Trade Agreement ”, Minister Tuan Anh emphasised.

In his remarks, Kyle Kelhofer, country director of the IFC, said that the launch of the database system has come at a time when the ongoing epidemic is having a strong impact on global value chains. In this global context, the supply stability and capacity of local suppliers has become an extremely important factor.

This new system will serve as a way of strengthening the connectivity that exists between domestic enterprises and multinational companies, therefore helping to affirm the nation as a key regional manufacturing and processing hub, Kelhofer noted.

According to the MoIT, the manufacturing and processing industry can be considered the backbone of the national economy and is a key driving force behind the growth of the entire Vietnamese industry.

With an annual growth rate of approximately 10.6%, the manufacturing and processing sector can be considered a "bright spot" of the country’s industry in general, especially with the recent pandemic causing a global economic downturn.

Moreover, the processing and manufacturing industry can also be viewed as a key field which attracts foreign investment. In 2019 alone, the whole country attracted 3,478 new projects, with a total capital of nearly US$31.8 billion, with the processing and manufacturing sector accounting for the highest proportion with US$21.6 billion, equal to 67.8% of total registered investment capital.

Therefore, the central task moving forward is to set up and revamp the statistical system, the database that is in place for both the processing and manufacturing industries, with a priority being placed on the development of the supporting industry as a means of enhancing the connection between Vietnamese providers and multinational groups. 

This can be done through improving the effectiveness and efficiency of state management agencies whilst developing policies suitable for the supporting industry, as well as improving the overall quality of statistical work and ensuring accurate information is delivered in a timely manner.