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Economic News

Last updated: Friday, October 19, 2018

 

Narrowing Competitiveness Gap with ASEAN-4 Industries

Posted: Thursday, June 07, 2018


Narrowing the competitiveness gap with industries in ASEAN-4 countries is one of important tasks of the industrial sector as stated in the Plan of Industrial Restructuring in 2018 - 2020, with a vision to 2025, under Decision 598/QD-TTg signed for enactment by Deputy Prime Minister Trinh Dinh Dung on May 18, 2018.

Development on par with advanced countries in the region

The share of industry and construction in GDP will be between 30 per cent and 35 per cent in 2020 and the industrial growth will be higher than the GDP growth. The share of manufactured goods in total export turnover will reach 85 - 90 per cent. The industrial and construction labour force will account for 25 - 30 per cent of the workforce. The investment growth rate and the number of industrial enterprises are higher than the average growth rate of the whole society.

The annual average growth of industrial labour productivity is over 5.5 per cent and the gap of industrial competitiveness with ASEAN-4 countries is narrowed. The share of hi-tech sectors to the manufacturing industry and the private sector is higher year after year in entities engaged, employees and turnover. Manufacturing value added (MVA) grows an average of 8 - 10 per cent annually.

In the period up to 2025, the share of industry and construction in GDP will be maintained at over 35 per cent and the share of processed and manufactured goods in exports will be kept at over 85 per cent. The share of workers, enterprises and investment in industry will be higher than in the 2015 - 2020 period.

Vietnam's industry will grow to bridge the gap of industrial competitiveness with ASEAN-4 countries, especially in MVA-related indicators, maintain the annual labour productivity growth of 6-7 per cent on average, increase the share of hi-tech industries in manufacturing and processing industries and the private sector than in 2015 - 2020 period; deepen the involvement of some sectors with strong international competitiveness into global value chains; and form large-scale multinational domestic industrial corporation to sharpen international competitiveness.

Value-added growth schemes

The industry will apply advanced production systems and advanced technologies initiated by the Fourth Industrial Revolution, integrate industrial production with environmental protection and response to climate change; and utilise and economise resources and energies in industrial production.

In addition, developing and upgrading industrial value chains such as garment and textile, leather and footwear, chemical, food and electronics to increase added values and strengthen global production network participation will be more focused. The introduction of Vietnamese goods into foreign networks will be accelerated.

The Vietnamese mining industry will increasingly exploit and use natural resources such as coal, oil, gas, limonite, magnetite, bauxite and titanium.

The Government encourages big companies to invest in automobile development on fair and equality principles regardless of domestic and foreign manufacturers in order to develop Vietnam’s automobile industry to meet market needs and contribute to the country’s socioeconomic development demands. Automobile manufacturers and assemblers should invest heavily in research and development (R&D) and supporting industries and deepen their engagement into global value chains.

Supporting industries for electronics, mechanical engineering, garment and footwear sectors will be further developed and supplemented. In addition, pilot business support models will be applied in some supporting industries for garment and textile, leather and footwear, electronics and automobile will be deployed and expanded.

One of key tasks is giving priority to development investment for deep-processing industries for agricultural, forest and aquatic products, especially Vietnamese products with competitive advantages to increase added value, to help farmers boost sales and increase export value, and encourage the development of hi-tech processing.


Huong Ly









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