The Sai Gon Hi-tech Park and industrial parks and economic zones in the southern provinces of Long An, Binh Duong, Dong Nai and Ba Ria-Vung Tau will work together to develop support industries under an agreement clinched on October 28.

At the signing ceremony

This is part of the programme to develop supporting industries in Ho Chi Minh City during 2019-2025 under the municipal People’s Committee’s Decision No.2869/QD-UBND dated July 5, 2019.

The programme aims at shaping a network of small and medium-sized enterprises in supporting industries through enhancing connection between the Sai Gon Hi-tech Parks and supporting companies in neighbouring provinces.

Besides, the programme helps local supporting firms expand market as well as join global supply chain.

According to deputy head of the Sai Gon Hi-tech Park’s management board Le Bich Loan, the management boards of the processing zones, industrial parks and economic zones committed to sharing basic data to outline cooperation programmes, helping supporting firms participate in production chains of global corporations.

Vietnam will have 2,000 enterprises capable of directly supplying parts for multinational corporations in ten years.

Prime Minister Nguyen Xuan Phuc signed a resolution to promote the development of support industries.

The resolution sets out the target that Vietnamese enterprises will be able to produce highly competitive support industrial products, meeting 45% of the essential needs for domestic production and consumption, accounting for about 11% of industrial production value by 2025.  

About 1,000 enterprises are expected to be capable of supplying directly to assembly enterprises and multinational corporations, of which domestic enterprises account for about 30% by 2025.

By 2030, support industrial products will meet 70% of the demand; accounting for about 14% of industrial production value.

About 2,000 enterprises will be capable of supplying directly to assemblers and multinational corporations in the territory of the country by 2030.

To accomplish the above objectives, the resolution offers groups of incentives including developing, improving and implementing effectively and synchronously specific mechanisms and policies to develop support industries and create favourable conditions.

The resolution also noted the implementation of preferential interest rate policies for support industry enterprises and processing and manufacturing industries.

Another solution is attracting investment effectively and promoting business links between Vietnamese and multinational enterprises, as well as domestic and foreign production and assembly companies; building concentrated support industrial parks; and developing material industries to increase autonomy in raw materials.

Resolution 115/NQ-CP also emphasised promoting the development of domestic and foreign markets.

It will also improve scientific and technological capacities to develop and create a breakthrough in technology infrastructure, technology transfer, and enhance capacity to absorb technology.

In addition, the resolution also emphasised developing human resources through national programmes and plans on skills improvements and links between training institutions and enterprises.

Finally, building and perfecting the statistical system to promote the connection between Vietnamese suppliers and multinational corporations; enhancing the effectiveness and efficiency of state management and policies on support industries; and improving the quality of statistics to ensure timely, complete and accurate information. 

Many Vietnamese companies now confidently introduce their products to foreign firms, and not just simple products like screws, moulds and plastic packaging, but also high value-added products such as motor cores, electronic chips and circuit boards.

To promote the development of support industries, the Department of Industry and Trade is drafting an investment stimulus programme for 2021 – 25 for support industry enterprises to improve production technologies and equipment and make more products meeting global corporations’ requirements and entrench themselves in global supply chains.

Support industries are key to raising the value of the industrial production, and promoting them is vital to attracting more giant foreign investors to the city.