Vietnam to Offer More Incentives to Supporting Industries
Vietnam’s Ministry of Industry and Trade (MoIT) released the final draft decree last week to provide more support and special treatment for domestic supporting industries.
Under the draft decree, some incentives will be given to enterprises operating in supporting industries in five fields of mechanics, apparel, footwear, electronics and informatics, and auto assembling.
Supporting industries manufacture materials, parts, components and semi-finished products for supply to assembly factories and industries making finished or consumer products.
These companies will be given priority to benefit from trade and investment promotion programs and national technology development funds; and priority to be provided with suitable land in industrial zones.
They can also receive financial support to recruit and train employees and free advertising on MoIT’s website. Their production projects will be given with import tariff incentives and preferential loans from Vietnam Development Bank (VDB).
Project owners will need to make an application for specific benefits to the project assessment board before submitted to the Prime Minister for approval.
In order to make the decree effective with the promised support for supporting industries, banks need to be encouraged to provide loans for firms in this field, said Tran Hung, deputy director of the Department of Light Industry under the MoIT.
Nguyen Thi Bich Van, deputy director of the Foreign Investment Agency of the Ministry of Planning and Investment, said the ministry will also focus on developing supporting industries in 2011 to attract more foreign investment. (STD, HCM City Law)
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