Motorbike components are produced at TS Interseats Viet Nam, a Thailand-invested company in Ha Noi's Noi Bai Industrial Zone. Greater support is needed to develop the support industry. — VNA/VNS Photo Huy Hung

HCM CITY (Biz Hub) — More support should be given to several key industries to help add value and increase the localisation ratio of exports, the Industry and Trade Department of HCM City has said in a new report.

The department urged the city to develop incentive policies for support industries, especially for engineering, electronics and garments, and encourage local enterprises to use domestic technology, machinery and materials.

To help businesses, the department said it had provided capital, business space, IT application and re-investment for new technology.

In the near future, the city plans to give priority to increase exports that have special advantages, including high value-added and high-technology exports.

It will also reduce exports of raw materials.

Support industries will be set up in high-tech parks, new export markets will be approached, and high value-added agricultural products and food will be created. More worker training courses are also part of the city's plan.

As for exports, the proportion of technology, processing and manufacturing industries comprise 68.26 per cent, more than the city's target of 62 per cent by 2020. On a national level, it is 58.5 per cent.

The proportion of four key industries in HCM City to total industry increased from 54 per cent in 2006 to 59.4 per cent in 2014.

Engineering rose from 15.4 per cent in 2006 to 19 per cent in 2014; electronics and information technology, from 3 per cent in 2006 to 4.1 per cent in 2014; chemical substances-plastics-rubber, from 16.8 per cent to 19.2 per cent; and food and food processing, from 14.8 to 17.2 per cent.

For two labour-intensive industries, shoes and textiles and garments, most workshops have been moved to rural areas where industries can take advantage of the supply of labourers.

Value-added processes like design, new models and luxury fashion have remained in HCM City with a proportion of 18 per cent. — VNS