Vietnam pushes to triple number of support firms

10:23 | 02/07/2019 Industry

(VEN) - By 2020, Vietnamese support industry products could be highly competitive, meeting 45 percent of essential demand for production and local consumption, and accounting for 25 percent of total export value.

vietnam pushes to triple number of support firms

According to the Ministry of Industry and Trade, Vietnam currently has 1,800 part suppliers. However, only 300 firms take part in the supply chains of multinational corporations.

Vietnamese support industry businesses face many challenges. The number of Vietnamese suppliers is modest, most of them with low capacity. In addition, they lack funds and modern technologies and equipment, while human resources have not met requirements, either. Domestic products are mainly simple components and details, with low technology content and small added value.

Pham Manh Thang, director of the P&Q Solutions Co., Ltd., said that it takes domestic support industries 1.5-2 hours more to produce an item than it takes FDI companies.

To meet the goal of having 1,000 firms capable of supplying products to assembly companies and multinational groups in Vietnam by 2020, the Ministry of Industry and Trade has identified key sectors in which to prioritize investment.

Minister of Industry and Trade Tran Tuan Anh said electronics, automobile, garment and textile, leather and footwear, and energy are among the priority areas. The Ministry of Industry and Trade hopes Vietnam will have three research and development centers for support industries in the northern, central and southern regions, Tran Tuan Anh said.

Research and development centers for support industries will not only focus on introducing technologies and creating favorable conditions for businesses to access technologies through international cooperation, but also support research and development activities. They will contribute to increasing the added value of support industry products.

Vietnam will be developing appropriate policies and allocating resources to enhance the capacity of leading companies in prioritized industries and small- and medium-sized enterprises operating in support industries to leverage their production capacity.

By 2030, Vietnamese support industry products could meet 70 percent of essential demand for production and local

consumption, and account for about 14 percent of total industrial production value. The number of firms capable of

supplying parts and components for multinational corporations would double 2020’s figure to stand at 2,000.

Lan Anh