The northern province of Vinh Phuc has targeted having 70 enterprises eligible to become first-tier and second-tier suppliers for manufacturers of autos, motorcycles and electronic products, as well as partial suppliers for large export enterprises by 2030.

This is a part of a plan issued by the People’s Committee of Vinh Phuc Province on a Government Resolution for solutions to develop supporting industries in Viet Nam.

The development of supporting industries is considered an important solutions to attract investment, helping the province fulfill its goal of becoming a major centre of the auto and motorcycle manufacturing industry.

To realise the above goals, the provincial People's Committee has worked out solutions such as carrying out projects to boost the development of supporting industries, continuing administrative reform to create a favourable business environment, and effective operation of provincial industrial development to support the technical centre.

Regarding taxes, finance and credit, the province plans to offer preferential interest rates for corporate income tax with investment projects on products on the list of supporting industrial products prioritised for development.

Incentive policies on interest rates for enterprises when borrowing short-term capital at credit institutions and compensation for the difference in interest rates for medium and long-term loans will also be included.

Businesses in the province are encouraged to expand cooperation with domestic and foreign partners to participate in the global value chain. They are also advised to step up promotion to attract investment from large corporations.

More support will be given to enterprises that engage in innovation, research development, and technology transfer.

It is necessary to ensure the scale of the domestic market, promote the foreign market and take advantage of free-trade agreements that Vinh Phuc has signed with other partners, according to provincial authorities. — VNS