Clearly defined localization rate proposed for major projects

On June 15, the National Assembly’s Committee for Science, Technology, and Environment chaired a workshop titled “Vietnam’s Materials Industry and Mechanical Engineering-Manufacturing Industry in a New Development Phase.”

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National Assembly Vice Chairman Nguyen Hong Dien speaks at the event. (Photo: SGGP)

Speaking at the workshop, National Assembly Vice Chairman Nguyen Hong Dien emphasized that the event was part of a series of activities aimed at implementing the conclusions of Party General Secretary and State President To Lam during a working session with relevant agencies on the development of the materials industry while also concretizing the Party’s major policies on science and technology development and innovation.

According to the introductory report presented at the workshop by Chairman of the National Assembly’s Committee for Science, Technology, and Environment Nguyen Thanh Hai, the most significant bottlenecks at present are the absence of a comprehensive national strategy; fragmented policy and institutional frameworks; weak linkages among the State, academia, and enterprises; and, in particular, a shortage of high-quality human resources in key sectors.

The head of the National Assembly’s Committee for Science, Technology and Environment called on participants to focus their recommendations on breakthrough legal and policy mechanisms to attract experts, promote innovation, and the commercialization of research outcomes; solutions for developing enterprises capable of leading value chains; and measures to align the development of the materials and manufacturing industries with national strategic programs, including high-speed railways, nuclear power, national defense, and the semiconductor industry.

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At the seminar (Photo: SGGP)

Participants at the workshop shared the view that improving the institutional framework and fostering an innovation ecosystem are urgent priorities. Specifically, they recommended the early formulation of the Key Industrial Law, the Law on the Management and Development of Construction Materials, and implementing regulations to establish a coherent and unified legal framework.

Assoc. Prof. Dr. Nguyen Chi Sang, Chairman of the Vietnam Association of Mechanical Industry (VAMI), proposed introducing mandatory requirements on localization rate, technology transfer, and the use of domestic suppliers in major projects, particularly in the railway, energy, and defense sectors. He also recommended selecting 15–20 core enterprises to undertake strategic missions in key industries, establishing long-term credit packages with appropriate interest rates, and providing tax incentives for research and development (R&D) activities and technology acquisition.

Meanwhile, Mr. Phan Dang Phong, Director General of the National Research Institute of Mechanical Engineering, proposed that the National Assembly issue a resolution on special mechanisms allowing conditional direct appointment of domestic consortiums to implement mega-strategic projects, with the aim of “purchasing capabilities” rather than merely “purchasing equipment.”

Acknowledging the recommendations and proposals raised at the workshop, National Assembly Vice Chairman Nguyen Hong Dien affirmed that the event was of great significance, contributing to the formulation of policies and providing strong impetus for the development of the country’s two foundational industries in the new development phase.

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Nguyen Thanh Hai, Chairwoman of the National Assembly’s Committee for Science, Technology and Environment, speaks at the workshop. (Photo: SGGP)
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Prof. Dr. Nguyen Chi Sang, Chairman of the Vietnam Association of Mechanical Industry (VAMI), speaks at the event. (Photo: SGGP)

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