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Weak internal resources, what should Vietnam’s industry do?


Social resources should be used effectively to focus on building and improving capacity and productivity for domestic industrial enterprises, creating greater added value and deeper participation in the supply chain. response.

Over the past time, the total investment capital for industrial development has been continuously expanded, in which, the ratio of industrial investment to total social development investment capital has always accounted for approximately 40% of the total investment capital of the whole commune. society, only after the service industry (approximately 50%) with the shift from investment of the state sector to investment of the non-state sector (mainly FDI), in which the processing industry Creation is always the area that attracts the most FDI investment. In the period 2011-2019, investment growth in the industrial sector is estimated to increase by 11.79% and about 14% in 2020, higher than the growth rate of the whole society.

Data from the Ministry of Planning and Investment shows that, in the first 7 months of 2022, the processing and manufacturing industry attracted more than 10 billion USD in foreign investment, accounting for 64.3% of the total registered investment capital. continues to be the industry that attracts the most FDI in the country. In terms of the number of new projects, the manufacturing and processing industry is also among the three areas that attract the most projects, accounting for 26.6%. Many projects of manufacturing and manufacturing electronic and high-tech products continuously expand their investment in Vietnam after a period of investment and effective operation with an investment capital of up to hundreds of millions of USD per year project.

However, the problem of Vietnam’s industry lies in the weak internal resources, economic restructuring, which depends too much on FDI enterprises . For example, FDI enterprises account for more than 70% of Vietnam’s total export turnover, especially, for key export industries such as electricity – electronics, textiles, leather and footwear, the number of FDI enterprises is only about 20% of the total number of enterprises but account for more than 80% of export turnover. These enterprises are mainly concentrated in the downstream area to take advantage of tax incentives and input costs such as cheap labor and Vietnam’s low labor and environmental requirements.

In that context, the Ministry of Industry and Trade said that in order to maintain economic growth and avoid the middle-income trap, in the coming time, Vietnam needs to continue to pursue the goal of industrialization with the processing and processing industry. Creation as the focus, in which the focus is on building an autonomous production base.

Therefore, social resources should focus on building and improving capacity and productivity for domestic industrial enterprises, forming and developing strong industrial enterprises, supply chains and value chains. domestic value (including production and service activities across the chain), having sufficient global competitiveness; creating an open and favorable investment and business environment for domestic industrial enterprises to grow, create greater domestic added value, connect with the foreign investment sector, and participate in deeper into the global value chain.

Investment management policies and investment incentives need to be developed closely to effectively attract investment capital, especially foreign investment, and create favorable conditions for large investments for development. industry , thereby improving the capacity, level of science and technology, human resources as well as promoting linkages and participation in production networks for domestic industrial enterprises. These policies will also be a push to help solve the “vicious cycle” of lack of capital, technology and human resources for industrial development for a long time.

In addition, it is necessary to have supportive policies to create an effective production model for industrial development along the value chain, to build industry clusters, to create more favorable conditions for investment attraction. as well as to specialize in production and connect industrial enterprises in the cluster to take advantage of competitive advantages between localities and regions, thereby creating strength and competitive advantages for products.

Following the direction of the Government, receiving comments from ministries, branches and localities and appraisal opinions, the Ministry of Justice and the Ministry of Industry and Trade have developed and drafted a Dossier to submit to the Government to propose the construction of a project. The Industrial Development Law project is currently collecting comments from people and businesses. Accordingly, the Law on Industrial Development will focus on regulating activities to develop a number of priority, foundational industries that have spillover effects on other industries and economies.

The Industrial Development Law will also not focus on state administrative management activities and business investment conditions, but will focus on promoting the development of processing and manufacturing industries on the basis of create an attractive mechanism and environment to promote investment attraction in industry, improve the capacity of industrial enterprises, develop industrial linkages and regional – local economies, at the same time build models and appropriate industrial management system in the current international integration context.

The formulation and promulgation of the Law on Industrial Development is expected to create synchronism and linkage, bring into play the full potential of the manufacturing and processing industry, maximize development resources, and create a breakthrough. to contribute to the achievement of the country’s goal of industrialization and modernization.

Source Hanoimoi

Let’s welcome the return of MTA Vietnam 2023 – The leading exhibition on precision mechanics and metal processing industry in the North. Here, the latest products, solutions and technologies are introduced by exhibitors, creating more opportunities to approach customers and potential suppliers. The exhibition is also a platform to connect and communicate between regional and international businesses in the industry to update the latest industry trends. Beyond that, there will be presentations from leading industry experts, from which you can update industry knowledge and enhance experience at the exhibition.
Exhibition date: July 04 – 07, 2023    Opening hours: 9:00 – 17:00 daily
Venue: SECC – Saigon Exhibition and Convention Center, 799 Nguyen Van Linh, Tan Phu, Quan 7, Ho Chi Minh City, Vietnam
Contact Information: Mr. Kingsley
Tel: +84 28 3622 2588
Email: [email protected]
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