Localities prioritize supporting industry development

Domestic supporting industrial products have gradually joined supply chains and obtained high added value

In recent years, the Government has issued numerous policies, which provide support and incentives for supporting industry enterprises. These include Decree 111/2015/ND-CP dated November 3, 2015 on the development of supporting industries; Decision 68/QD-TTg dated January 18, 2017, approving the Program to Develop Supporting Industries in the 2016-2025 period; and Resolution 115/NQ-CP dated August 6, 2020 on solutions to promote supporting industry development in 2020, among others.

These policies have brought significant benefits to enterprises. Domestic supporting industrial products have gradually joined supply chains and obtained high added value, reducing Vietnam’s dependence on imports and enabling it to take steps towards self-sufficiency in raw materials.

Specifically, the footwear industry has achieved a self-sufficiency rate of 30-45 percent, while the mechanical engineering sector has surpassed 30 percent. These policies have not only brought significant benefits to domestic enterprises, but also attracted foreign direct investment (FDI) in Vietnam.

Based on the mentioned-above general policies, localities, such as Hanoi, Ho Chi Minh City, Bac Ninh, Bac Giang, Thai Nguyen, Hai Phong, Vinh Phuc, and Da Nang, have introduced their own specific policies. These local policies primarily focus on areas, such as supporting enterprises in workforce training, helping them integrate into global production chains, and providing access to preferential loans. These efforts have significantly contributed to the development of supporting industries at the local level.

Ho Chi Minh City stands out as an example, identifying supporting industries as a priority sector. The city has implemented various policies and programs to support enterprises, such as offering preferential loans for priority projects through interest rate subsidies, providing loan interest support of up to 100 percent, and funding support of up to VND200 billion. Additionally, the city has organized a program to honor outstanding industrial and supporting industrial products. It is also implementing a program to support enterprises and product development in the mechanical engineering and automation sectors in the 2020-2030 period. These initiatives have effectively facilitated supporting industry enterprises.

In Hanoi, the city has developed an annual and phased Supporting Industry Development Program to encourage the growth of supporting industries, boost production, attract investment, and assist Hanoi’s supporting industry enterprises in joining the global production network.

Vinh Phuc Province has issued numerous mechanisms and policies to promote the development of supporting industries. These include the Provincial People’s Council’s Resolution 57 on specific measures to attract investment and support enterprise development; the Provincial People’s Committee’s Decision 39, which provides support for enterprises producing prioritized supporting industrial products; and Decision 3663, which introduces a program for supporting industry development in the province in the 2021-2025 period.

Da Nang has identified supporting industries as one of the three prioritized economic sectors. The city has introduced various incentive policies, investment attraction measures, and support programs for supporting industry enterprises. Notably, businesses can receive support worth up to VND5 billion under the city’s Supporting Industry Development Program through 2030, with a vision towards 2045.

In addition to issuing policies to promote the development of supporting industries, localities have intensified efforts to foster linkages and enhance the capacity of domestic enterprises to meet the demands of supply chains. They have implemented initiatives to support the connection between supporting industry manufacturers and large enterprises as well as foreign-invested companies.