Hanoi spurs support industries

09:32 | 05/12/2016 Industry

(VEN) - Seeking solutions to overcome difficulties for support industries is a main content in the project on developing support industries in Hanoi during the 2016-2020 period.  

hanoi spurs support industries

Decent development

The survey on support demand for production of spare parts and components, the garment and textile, leather and footwear sector, and CNC technology in 300 support industry businesses received 85 responses.

Supporting Industry Development Enterprise Center (SIDEC) Director Truong Thi Chi Binh said that support industry businesses in Hanoi have seen a decent growth in the export value. In particular, indirect exports through providing products for foreign-invested enterprises and export processing companies in Vietnam have become popular. Some 43.5 percent of surveyed companies witnessed revenue growth, while 42.3 percent of the respondents saw an increase in profits.

Basic difficulties in the development of trade and production activities of support industry businesses in Hanoi were higher production costs compared to neighboring provinces, which directly affected their investment decisions. In addition, the lack of information sources and support programs from state agencies and limitations in trade promotion and market expansion activities were also mentioned.

Hanoi Department of Industry and Trade’s representative said that income tax incentives have only attracted the interests of FDI companies, while domestic support industry businesses have been impassive.

The need of specific solutions

According to the project on developing support industries in Hanoi during the 2016-2020 period, there will be around 1,000 support industry businesses in operation by 2020, including 40 percent of them having production system to provide products with international standards. In addition, the index of industrial production of support industries is expected to exceed about 18 percent in Hanoi’s manufacturing and processing sector.

Specific policies are needed to promote the development of support industries, Deputy Head of the Hanoi Industrial and Export Processing Zones Authority Nguyen Duc Quang said.

The project’s goal needs to be suitable with the businesses’ expectations, contributing to help them dominate the domestic market and participate in the global supply chain.

Economists said that to spur the development of support industries, in addition to macro policies, tax incentives, interest rates and human resources, businesses also need to make greater efforts.

Lan Anh