Developing supporting industries for self-reliance
HANOI: Vietnam’s supporting industry needs to advance self-reliance and reduce dependence on imports to improve the value and competitiveness of products in the global value chain.
Experts said that Vietnam’s industrialisation and modernisation strategy for the 2021-2030 period, with a vision to 2045, needs to adapt to rapidly changing domestic and international contexts.
A report by the Industry Department under the Industry and Trade Ministry said that the under-developed supporting industry left Vietnam unable to be self-sufficient in production inputs, leading to a significant dependence on imported spare parts and raw materials.
The trade deficit of inputs for production has been an issue for many years, reducing the added value of domestic industries.
The Industry Department report pointed out that in recent years, manufacturing and processing industries accounted for a high proportion of nearly 40% of the total net production and business revenue of the economy, but only contributed about 14% of the total gross domestic product, a very low value added compared to other industries.
This weakness not only affects production development and economic growth in the short term, but will continue to affect industry and Vietnam’s economy overall in the long term in the context of deepening international integration.
“Therefore, developing supporting industries and gradually becoming self-reliant on domestic sources of raw materials and components is one of the core issues for sustainable development of Vietnam’s industry in the long term,” said a representative of the Industry Department to Cong Thuong (Industry and Trade) online newspaper.
Highlighting the solution, the Industry Department said that first of all, it was necessary to improve the capacity of supporting industry enterprises; opening up market opportunities for supporting industry enterprises to become suppliers and participate in the supply chain of enterprises manufacturing and assembling final products.
The state also needed to actively expand foreign markets for supporting industry enterprises, along with receiving technical processes and production skills from abroad to improve production capacity, said the department.