Association established for supporting industries

11:00 | 16/04/2017 Industry

(VEN) - Now is the time to establish a Vietnam Association for Supporting Industries (VASI) in order to link support industry businesses and facilitate their development, Truong Thanh Hoai, the Head of the Ministry of Industry and Trade’s Heavy Industry Department, said at a recent conference.

Existing shortcomings
On March 16, the Ministry of Home Affairs issued a decision allowing the establishment of the Vietnam Association for Supporting Industries (VASI).

Le Duong Quang, head of the VASI Establishment Promotion Committee and former Deputy Minister of Industry and Trade, said support industries were only formed 15 years after multinational groups had established themselves in Vietnam. However, despite efforts by foreign and domestic enterprises to boost such support production, the sector remains small and uncompetitive.

According to the General Statistics Office, among the existing 1,500 support industry businesses in Vietnam, only about 500 are operational, providing accessories for several industries, such as motorbikes and textiles and garments. “The number is too small, falling short of demand. They fail to contribute to implementing the industrialization and modernization strategy and creating high added values for industries in the next ten years,” said Le Duong Quang.

So far, Vietnamese support industry businesses have developed under their own steam, rather than receiving support from the government, although a series of governmental directions for support industry development have been announced. Businesses in the sector have faced numerous hurdles in terms of access to low-interest loans, production sites, human resources training, application of international standards, links with buyers and trade promotion activities.

Support industry centers
Le Duong Quang also said support industry businesses are in dire need of an independent organization to link them and build capacity to meet increasing demand in the context of increasing globalization.

Agreeing with Le Duong Quang, Nguyen Quoc Binh, general director of the Hanel One-member Co., Ltd. said such an organization would provide VASI members with support and ability to link with each other in order to make the most of technology and increase their share of the market.

Many businesses said they also expect VASI membership would make it possible for them to get a bigger number of production orders and get access to advanced, specialized foreign technologies.

Also according to Truong Thanh Hoai, the government has already announced Decree 115/2015/ND-CP and has recently made public Decision 68/QD-TTg, adopting a support industry development program with total funds of more than VND1 trillion from now until 2020, with a vision to 2025, in an aim to boost the development of support industries. “In the near future three support industry development centers will be set up in Hanoi, the central region and Ho Chi Minh City to give technical support and administrative advice to businesses,” said Truong Thanh Hoai.

The Ministry of Home Affairs issued Decision 835/QD-BNV on March 16, 2017 allowing the establishment of a Vietnam Association for Supporting Industries (VASI) tasked with gathering businesses in the sector, building their capacity, including them in outlining policies, and seeking opportunities at home and abroad.

Lan Anh