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Mr. Le Hoang Tai, Deputy Director of the Vietnam Trade Promotion Agency, speaks at the seminar |
The Ho Chi Minh City-organized seminar attracted the participation of 150 domestic and foreign enterprises. Many businesses said that they are promoting investment or linking with domestic enterprises to expand the development of the processing and manufacturing field in Vietnam.
Mr. Le Hoang Tai, Deputy Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said that the processing and manufacturing industry is attracting a large amount of foreign investment capital. From 2022 up to now, foreign investment capital (FDI) in the industry usually accounts for the highest proportion in terms of the number of projects and registered capital, reaching more than US$14.96 billion, accounting for nearly 54 percent of registered total FDI capital.
Explaining this issue, Ms. Le Huyen Nga, Head of the Ministry of Industry and Trade’s Supporting Industry Department, said that the fact that FDI enterprises poured heavily into the processing and manufacturing industry in Vietnam because the supply of supporting products in the Southeast Asian country is constantly improving. Many domestic enterprises have converted their production capacity from simple products to detailed clusters with high technology.
Not only that, the legal instruments to support enterprises in the supporting industry include preferential mechanisms, reasonable financial support, research and development and technology transfer, and production management are helpful for businesses.
In particular, businesses investing in this industry will receive credit support in two forms such as interest rate compensation and loan interest support at 3 percent. In fact, 150 supporting industry projects have benefited from the above preferential policies on corporate income tax and credit interest rates.
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Seminar participants listen to opinions |
However, although the policy of supporting industry development has been improved, there are still many shortcomings such as a lack of effective mechanisms to link between supply enterprises and manufacturing enterprises and no policy to utilize the production capacity of FDI enterprises to develop supply chains in the domestic market. Additionally, the policy of attracting FDI in supporting industries is also not attractive enough to catch large investors’ eyes.
According to Ms. Nga, it is necessary to study and develop policies to promote the development of key national industries in the coming time including expansion of the domestic market and the export market for industrial products. Along with that, there should be a credit policy for industrial enterprises in combination with the formation of services and activities to support businesses. Finally, there should be regulations on supporting solutions to improve productivity and quality in industrial production for enterprises.
