The Ministry of Planning and Investment (MPI) said it had advised the Government to implement a number of policies to support Vietnam’s industrial sector, especially the supporting industry.

Workers at a car factory in the northern province of Vinh Phuc (File photo)

"The ministry is in the process of reviewing and amending the Government’s Decree 68 on the development roadmap of the industrial sector 2016-2025 and development strategy for textiles and footwear," said Nguyen Huu Thanh, Deputy Director of MPI's Department of Industrial Economy. 

In the meantime, measures have been taken to aid domestic businesses, boost demand and mitigate the adverse effects of the COVID-19 pandemic. 

Since the initial outbreak of the novel coronavirus, a large number of Vietnam's industries have been hit hard as raw material supply was severely disrupted due to strict measures imposed to limit the spread of the virus.

As of recently, however, the bigger problem is how to find markets for Vietnamese products as the industries have slowly regained their production capacity. 

"In order to find new markets, the ministry has been working closely with trade agencies. It has also recommended the Government to reduce business fees and extend deadlines for business taxes, all done to encourage and help businesses get on their feet sooner," Thanh said. 

In addition, the Ministry of Finance has been working on a plan to offer a slew of tax incentives for support industry businesses.

The plan would allow businesses with investment to build or expand production capacities finished before 2015 to benefit from corporate income tax incentives for a duration of five years until the end of 2020.