"Support industries play a key role in raising the competitiveness of industrial products and are a decisive factor in the development and enhancement of the nation's competitiveness". — VNA/VNS Photo Vu Sinh

HCM CITY (Biz Hub) — Support industries are the backbone of the country's industry, according to Truong Thanh Hoai, deputy director of the Heavy Industry Department of the Ministry of Industry and Trade.

Further, support industries play a key role in raising the competitiveness of industrial products and are a decisive factor in the development and enhancement of the nation's competitiveness. Without having support industries, it would be impossible to operate manufacturing industries, Hoai said during a workshop to discuss solutions to develop support industries in Viet Nam, held by HCM City Economics University and the Economic Commission of the Party Central Committee in HCM City yesterday.

Regarding developing solutions for support industries in Viet Nam, Professor Vo Thanh Thu said developing support industries must focus on key industries in Viet Nam, including those attracting large foreign investments, such as garments and textiles, engineering and electronic assembly. These industries have a large demand for support industries, as well as provide a need to modernise technologies and train highly-qualified workers to produce standardised products.

Thu emphasized that investment in technology required large amounts of capital. To assist enterprises, the Ministry of Finance and the State Bank of Viet Nam should work out policies to create favourable conditions for enterprises to have access to long-term loans with preferential interest rates. A representative of the HCM City Department of Industry and Trade told those at the seminar that support industries in Viet Nam were mainly catering to export processing technologies, while manufacturing industries largely relied on imported raw materials and components.

In addition, the country has not yet developed specialized industrial complexes, resulting in underdeveloped support industries.

The HCM City Department of Industry and Trade has proposed a series of measures to develop support industries by offering incentives to attract FDI businesses. It is stated that FDI businesses are an important driving force to promote domestic support industries.

The department has also suggested that the Government consider a master plan for support industries and offer credit loan policies for businesses to develop support industries and human resources in support industries.

Hoai said the Ministry of Industry and Trade is now developing a decree on the development of support industries, and is expected to submit to the Government in the fourth quarter of this year.

Hoai added that the decree would focus on measures to support technology, production management and customer services to avoid shortcomings in local support industry companies.

Furthermore, the decree would supplement incentives on corporate income taxes and construction regulations on the building of support industry complexes to attract global multinational corporations to provide parts and materials to invest in Viet Nam. — VNS