The Ministry of Industry and Trade (MoIT) has proposed a VNĐ100 trillion
(US$4.31 billion) preferential credit package for the development of the
country’s support industry.
The ministry says that Vietnamese support industry products could have
high competitiveness, meeting 45 per cent of essential demand and local
consumption, and accounting for 25 per cent of total export value by 2020.
The support industry plans to meet 70 per cent of local demand by 2030.
It also planned to have 1,000 firms capable of supplying products to
assembly companies and multinational groups in Việt Nam.
The local support industry would meet the requirements of localisation
progress of production sectors including 40 to 45 per cent for garment and
textile, and leather shoes, and 10 to 20 per cent to assembly of cars with fewer
than nine seats.
To realise the set targets, the ministry has proposed a range of solutions in
terms of policies and market development for the support industry.
Accordingly, the Government should continue to build and complete policies
to promote development of some key support industries. Policies to
encourage localities to use their budgets for support industry would also be
promulgated.
In addition, the Government should have mechanisms to develop some
sectors such as automobile, electronics, garment and textile, leather shoes
and material industry.
Businesses should be given support to improve their capacity. The country
would build three centres for the development of the support industry.
Preferential credit would also be given to the sector. Specially, the VNĐ100
trillion credit package would have similar mechanisms to the credit package
for hi-tech agriculture development.
The package for hi-tech agriculture development has the participation of
eight commercial banks. The banks would provide loans to organisations and
individuals who want to invest in clean and hi-tech agriculture. The interest
rates would be 0.5 to 1.5 percentage points lower than normal levels.
Prime Minister Nguyễn Xuân Phúc assigned the Ministry of Planning and
Investment in co-operation with the Ministry of Finance to arrange capital
to build the three centres. MoIT would study for the construction of the
centres. The State Bank of Việt Nam would provide preferential mechanism
on capital and loans to develop prioritised sectors within 5 to 10 years.
The Ministry of Science and Technology would consider adjusting access
mechanisms of the Việt Nam National Fund for Science and Technology to
make them simpler for support industry firms. In addition, each locality
should have action programmes to develop the support industry.
Statistics from MoIT showed that Việt Nam now has some 1,800 part
suppliers. However, only 300 firms are in the supply chains of multinational
groups.
Source: Vietnam News, Vietnam Monday, 22 April 2019