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Vietnam targets to have 2,000 supporting businesses

07:14 | 12/08/2020

Prime Minister Nguyen Xuan Phuc decided to promote the development of support industries of having 2,000 enterprises which can directly supply parts for multinational corporations in ten years.

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vietnam targets to have 2000 supporting businesses
(Photo: VOV)

These 2,000 businesses provided essential, high-quality parts for larger enterprises to allow them to carry out business in Vietnam, according to VOV.

According to resolution 115/NQ-CP, Vietnamese businesses can produce highly competitive supporting industrial products, meeting 45% of the essential needs for domestic production and consumption, accounting for about 11% of industrial production value by 2025. About 1,000 businesses may supply directly to assembly enterprises and multinational corporations, of which domestic enterprises account for about 30% by 2025.

By 2030, supporting industrial products will meet 70% of the demand for domestic production and consumption, accounting for about 14% of industrial production value. There are about 2,000 enterprises capable of supplying directly to assemblers and multinational corporations in the territory of Vietnam, informed Investment News.

vietnam targets to have 2000 supporting businesses
(Photo: Investment News)

To accomplish the above objectives, the resolution offers groups incentives including developing, improving and implementing effectively and synchronously specific mechanisms and policies to develop supporting industries and create favourable conditions. Also, the resolution highlights the implementation of preferential interest rate policies for supporting industry enterprises and processing and manufacturing industries.

Another solution is drawing investment effectively and boosting business connections between Vietnamese and multinational businesses, domestic and foreign production and assembly companies; building concentrated supporting industrial parks; and developing material industries to increase autonomy in raw materials.

vietnam targets to have 2000 supporting businesses
(Photo: VOV)

Resolution 115/NQ-CP also stresses the promotion of the development of domestic and foreign markets. It will also improve scientific and technological capacities to develop and create a breakthrough in technology infrastructure, technology transfer, and enhance capacity to absorb technology. In addition, the resolution also highlights developing human resources through national programmes and plans on skills improvements and links between training institutions and enterprises.

Finally, building and perfecting the statistical system to promote the connection between Vietnamese suppliers and multinational corporations; enhancing the effectiveness and efficiency of state management and policies on supporting industries; and improving the quality of statistics to ensure timely, complete and accurate information.

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