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Promoting the development of supporting industries

​As one of the localities with a large number and scale of production of supporting industries, in fact this industry of Dong Nai is heavily depend on FDI units. Great potential, modern production technology and close links with finished products producing enterprises, so they can control the game better.

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Production at Future Co., Ltd., the beneficiary of the support program from the Ministry of Industry and Trade.

Dong Nai will continue to grasp the needs of businesses, coordinate with related units to remove difficulties and promote the development of the industry.

Still heavily dependent on foreign enterprises

According to the Department of Industry and Trade, there are more than 600 enterprises operating in the supporting industry in the province, accounting for more than 11.4% of the total number of enterprises and creating jobs for more than 158,000 workers. In the export structure of industrial products of Dong Nai up to now, more than half of export turnover belongs to the group of supporting industries. Currently, Dong Nai is one of the largest production and export centers of input materials for industrial production in Vietnam. Dong Nai enterprises are highly appreciated by brands around the world for their dynamism, the ability to complete many difficult and large orders in a short time.

Although it is considered as a relatively developed supporting industry, in reality, the industry depends a lot on foreign enterprises. Of the total number of supporting industry enterprises, more than 80% are foreign-invested enterprises. Most domestic enterprises have small scale, financial capacity, and technology have not met the strict requirements of partners. Besides, the connection and the link between enterprises are still weak, the link between supporting industry enterprises mainly takes place between foreign-invested partners. The participation of domestic enterprises in the value chain of the world's manufacturing industries has just begun...

Remove difficulties, support domestic enterprises to develop

Dong Nai's goal in developing supporting industries is to strive for an average growth rate of 2 to 5% per year for the localization rate of products in the industry groups on the Government's development priority list. By the end of 2025, the production value of supporting industry will account for about 21-23% of the industry value of the province. At the same time, complete information and data of industry enterprises on supporting industry, creating a bridge between supporting industry and enterprises producing finished products to cooperate closely with each other. The province has been developing more supporting industrial zones and clusters along with accompanying incentive policies, especially policies on finance, tax, technical and management support... The development of a strategy investing in science and technology and training human resources for the industry is also considered the most important solution in the current period, because improving technology is the key to developing supporting industry.

 At the end of August, during the working session between the Department of Industry and Trade and the Industry Agency (Ministry of Industry and Trade), many issues were raised with the aim of supporting and coordinating to promote the development of local supporting industries. In which, there are problems such as slow implementation of mechanisms and policies, enterprises have not benefited much from support programs for sustainable development; connecting human resource training, supporting corporate governance, production management is still fragmented... Mr. Pham Tuan Anh, Deputy Director of the Industry Agency said that the unit is implementing a program to develop supporting industries at a country level. So far, businesses benefiting from this policy have made very good progress. In Dong Nai, the unit is Future Company Limited (Long Thanh district) also benefited and initially became a supplier for the global value chain. Currently, another unit, Huynh Duc Production, Trading and Service Co., Ltd (Bien Hoa City) is also being coordinated and appraised by the Department of Industry and Trade and the Agency to put on the program.

For the implementation of the policy, Mr. Pham Tuan Anh said that on the local side, it is necessary to develop clear and focused policies to mobilize better resources. In the coming time, the Industry Agency as well as related units as well as the Department of Industry and Trade and other departments will exchange information regularly. Accordingly, coordinating and deploying support policies in the most reasonable way to promote supporting industry enterprises in the province to develop.



Author: Vi Quan

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