COVID-19

[COVID-19] Vietnam seeks to develop auxiliary industry in the context of COVID-19

Ancillary industry plays an increasingly important role for Vietnam, as local sourcing is one of the key factors in the business strategies of multinational companies. In the context of the global economic crisis caused by VIDOC-19, many production sectors in Vietnam such as mobile phones, electronic products, textile-clothing, leather shoes, agricultural production and processing, automotive and oil refining, all of which are key export sectors, were feeling the negative impacts of VIDOC-19 due to the disruption of global supply chains and the shortage of raw materials.

Prime Minister Nguyên Xuân Phuc signed on 6 August Resolution N°115/NQ-CP on solutions to promote the development of ancillary industries with many new policies that should create a great impetus in this sector.

Objectives: Vietnamese companies will be able to manufacture by 2025 highly competitive auxiliary industrial products that meet 45% of the basic needs of national production and consumption and represent about 11% of the value of Vietnam's industrial production. There would be about 1,000 enterprises capable of directly providing the necessary inputs to multinational assembly companies and groups on Vietnamese territory. Vietnamese companies plan to occupy about 30% of the national market.

By 2030, auxiliary industrial products will meet 70% of Vietnam's production and consumption demand; representing about 14% of the value of industrial production. There would be about 2,000 companies capable of directly supplying inputs to international assembly groups on Vietnamese territory.

According to the resolution, several supports are available to auxiliary and manufacturing enterprises: the latter will benefit from a policy of preferential short-term interest rates, and for medium- and long-term loans, the State will grant interest subsidies of up to 5% per year.

The government is also accelerating the construction of auxiliary industrial parks and technical centres, in order to create inter-industrial poles and support auxiliary industrial development in different localities in Vietnam.

Sources :

Courrier du Vietnam