Building an industrial development support center: Creating momentum, promoting growth06/05/2022
Over the past time, Vietnam’s industry has had a strong development with a high growth rate, however, the value created is still low.
Accordingly, the development and support for industry, especially the construction of industrial development support centers, is a big goal that the Ministry of Industry and Trade as well as many localities and businesses want and expect. .
The industry’s internal strength is still limited
Over the past time, Vietnam’s industry has developed strongly with the highest growth rate in recent years. However, production efficiency in terms of added value and exports is still modest.
According to the Department of Industry (Ministry of Industry and Trade), industry depends on the FDI sector, mainly focusing on the downstream sector; In the processing and assembly stages, the added value created is still low, spare parts and components largely depend on imports. The share of industry in GDP changes slowly (about 18%) and is still low compared to the requirements of industrialization and compared with other countries in the region. In addition, the internal capacity and competitiveness of the industry are still weak, reflected in the very small number of industrial enterprises (there are only nearly 80,000 enterprises in the processing and manufacturing industries in the whole country). limited financial and technological capabilities.
For example, Vietnam’s auto industry is currently only participating in the low segment of the industry value chain; depends heavily on the production division of global automobile corporations, has not yet mastered core technologies. The domestic production and assembly of automobiles has not yet met the criteria of the real auto industry, and a system of material suppliers and large-scale component manufacturers has not yet been established.
In addition, a number of main commodity groups of Vietnam, in which, many groups of industries such as processing industry, manufacturing, minerals – metallurgy, supporting industries… are facing fierce competition. in the face of commercial disputes and origin fraud. Exports of domestic enterprises have seen great growth in growth, but the structure of export value still mainly comes from FDI enterprises.
According to the Industry Bureau, the trade deficit of inputs for production from China and other countries has lasted for many years, making the added value of domestic industries very low and vulnerable. against political, economic and social changes at home and abroad. Data from the Organization for Economic Cooperation and Development (OECD) show that, in the past five years, in the value-added structure of Vietnam’s export products, foreign countries still account for a large proportion, especially from China and Korea; while the rate of domestic value added is still low and has not changed significantly.
Up to now, Vietnam’s two main export products, textiles and garments, and electronics, have a domestic value-added ratio of just over 50% and 37%, respectively. “In contrast, in some ASEAN countries, the value added in trade is changing in the opposite direction. This situation not only affects production development and economic growth in the short term, but also continues to affect industry in particular and the sustainable development of Vietnam’s economy in the long term. large openness, easy to hurt and sensitive to fluctuations from the outside” – said Mr. Truong Thanh Hoai – Director of the Department of Industry.
Developing an industrial support center – towards the goal of creating added value
Promoting industrial development is of great significance for economic restructuring towards industrialization and modernization, improving labor productivity, added value and competitiveness, contributing to the increase of labor rate. The important contribution of the processing and manufacturing industry in the structure of the economy. Along with the process of deep integration into the world economy, although Vietnam’s supporting industry has made certain progress, it still cannot meet the needs of domestic production, it is necessary to have a system of solutions. synchronous for development.
Accordingly, the Ministry of Industry and Trade is focusing on a number of major solutions to exploit the potentials and strengths to move Vietnam’s industry towards the goal of creating higher added value. Specifically, the Ministry of Industry and Trade cooperates with ministries and sectors to focus on formulating policies and solutions for the development of a number of priority industries with potential and opportunities for development such as the automobile industry, textiles, footwear, leather goods, etc. electronics, minerals, supporting industries. “Small and medium-sized enterprises need to be supported by the state until they are able to compete in the global market and become a reliable production partner for the global production chain. In which, especially support innovation support, production management system, access to preferential credit sources, new technologies and high-quality human resources” – Mr. Truong Thanh Hoai raised the issue.
Department of Information Industry, the Ministry of Industry and Trade is currently implementing investment procedures to build 02 centers to support industrial development in the North and Technical Center to support industrial development in the South.
The Ministry of Industry and Trade has approved the investment policy; investment project and is currently implementing the design of construction drawings as well as the following procedures of the project. Currently, the Centers focus on implementing activities to support enterprises in supporting industries and processing and manufacturing industries, prioritizing the development of innovation, research and development (R&D), technology transfer. technology, improving productivity, product quality and competitiveness, creating opportunities to participate deeply in the global production chain.
Currently, these two centers are consolidating the entire organizational apparatus and have had activities to support supporting industry enterprises in a number of localities across the country such as support for improvement, connection.