HCM City promotes support industries

15:23 | 16/04/2016 Industry

(VEN) - Ho Chi Minh City has planned to develop four major industries including engineering, electronics and information technology, rubber and plastics and food and foodstuff processing, and two traditional industries including textiles and footwear, after considering opinions and suggestions from more than 1,200 small and medium-sized enterprises across the city.

HCM City promotes support industries

The city is weak in support industries

Last year, these four major industries accounted for 60 percent of the city’s industrial contribution. However, these industries revealed limitations, especially in terms of support industries, according to experts.

For example, the majority of enterprises operating in support industries in the city, which were small and medium-sized and limited in marketing their products and accessing incentives, had to import more than 80 percent of raw materials and technologies and were mainly used as outsourcing for assembly and repairs.

One of the major causes stunting the development of the city’s support industries was the lack of policies and incentives. Moreover, the city lacked programs to support enterprises operating support industries in the city in terms of human resources, technology, information, marketing, and production site provision.

Quality norms are vital for support industrial products, so support industrial enterprises must struggle to update new technologies to meet production requirements.

Six key solutions to be implemented

The city has devised six key solutions to support small and medium-sized enterprises to develop support industries including perfecting state management of support industries, preparing production sites and call for investment, identifying key support industrial products, providing training for enterprises operating support industries in the city in terms of skills and management, providing incentives for enterprises operating support industries in the city and establishing a support industries database for reference.

For example, in the coming time the city should encourage investors in the construction of about 10,000sq.m of workshop to cater for the needs of local enterprises operating support industries. In addition, the city should set aside some 500ha of land to set up support industrial zones and centers during the 2016-2020 period, seek domestic and foreign consultancy on how to develop support industries in a sustainable manner and call for overseas Vietnamese to return to the country.

The city has reviewed and adjusted objectives of support industries with a view to encouraging local enterprises to participate in these industries and has assigned the Ho Chi Minh City Support Industrial Development Center to guide local enterprises on how to participate in and benefit from the local support industrial development program, which is believed to effectively improve the links between support industrial manufacturers and industrial assemblers.

Ho Chi Minh City will encourage the development of support industries in depth instead of in width, with a focus on key products with competitive advantages and high added values.


Hong Duong

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