30% of Vietnamese supporting industry firms join the global value chain

Photo: VNA
The information was informed by Mr. Pham Tuan Anh, Deputy Director General of the Department of Industry under the Ministry of Industry and Trade at a seminar organized recently.
In the textile, clothing, leather, and footwear sector, 64% of supporting industry enterprises supply to the domestic market, 9% export, and 27% supply to both markets.
In the chemicals, plastics, and rubber sector, the number of enterprises supplying to the domestic market accounts for 52%, and for export is 4%, the remaining 44% is supplied to both markets.
In the electronics industry, 44% of enterprises supply the domestic market, 16% supply the export market and 40% of the supporting industry enterprises supply the industry for both domestic and export markets.
In the auto mechanics industry, 83% of enterprises supply the domestic market entirely, only 3% of enterprises have revenue entirely from export, and 14% of enterprises have revenue from both markets.
The Government has coordinated with organizations and businesses to implement activities to strengthen linkages between FDI enterprises and domestic enterprises in Vietnam.
Objectively, Vietnam has a developed industry 2-3 generations after other regional countries, the small market size does not guarantee the capacity scale for industrial products to compete on price with the market other.
Subjectively, Vietnam currently has no enterprises that play a pervasive role in the industry. The level of enterprises and the quality of human resources is still limited. R&D (research and development), and new product development has not been paid attention to, and lack of investment capital.
Due to the overlap and inconsistencies of other sectoral laws, the state's management of the promulgation and resource allocation for the execution of policies to promote the growth of the supporting industry is still ineffective.
The Ministry of Industry and Trade has been actively cooperating with Government agencies of other countries Korea, Japan, Sweden, Switzerland, the UK, international organizations, and a number of large multinational corporations such as Samsung implementing cooperation projects to improve domestic support industry enterprises and strengthen the connection of domestic enterprises with global production chains.
In addition, strengthening linkages between domestic enterprises with the FDI sector and the global market in order to make good use of opportunities Free Trade Agreement (FTA), the Fourth Industrial Revolution, to bring domestic industry to participate more deeply in the global value chain.
Source: VGP