Vietnam’s supporting industry is still underdeveloped, ineffective and lacks linkage. That was the statement of Dr Nguyen Thi Tue Anh, Deputy Director of the Central Institute of Economic Management (CIEM), at the workshop to report research results on Enhancement of Vietnamese Supporting Industries. The workshop was held in collaboration with Mitsubishi Research Institute (MRI - Japan) in Hanoi.
According to Dr Nguyen Thi Tue Anh, Vietnam currently has many policies to support small and medium-sized enterprises in terms of institutions, credit, technology and human resources. However, in fact, the effectiveness of implementing policy is still not high. Ms Tue Anh said that the incentives for supporting industry under Decree 111/2015 / ND-CP on the development of supporting industries have not been really effective, because the policies are on paper and do not make a breakthrough for the development of Vietnam’s supporting industry. Specifically, the incentives on tax, credit, human resources specified in this Decree are not really new, but stated elsewhere in other legal documents.
On the other hand, the current supply capacity of the intermediate products of Vietnam is still weak in terms of quality, cost and time. This has made it difficult for businesses to break into the global value chain, although its surplus value is huge.
Suggesting some policy recommendations, Mr Kazuhito Hagiwara, Deputy Director of MRI said that, in the coming time, Vietnam should participate more in global value chains, accordingly, supporting industry will be a particularly important sector that should be prioritized for development. He also hoped that Vietnam would further cooperation with Japan in the field of supporting industries to provide policy solutions to develop supporting industry between the two countries.
According to Mr Kazuhito Hagiwara, while the business support centres in Japan focus on technical and technological assistance, those in Vietnam focus on the administrative support such as investment procedures, as well as supporting legal procedures, etc. Vietnam has a large system of business support agencies, with the business support centres in most sectors and the industrial promotion centres at local Departments of Industry and Trade nationwide, including the start-up business support, support for intellectual property, market surveys, business connections, etc. But it's important that centres of this kind are made duplication of functions and tasks, primarily to help businesses in terms of paperwork while lack the tools to support the in science and technology, etc.
Dr Yoichi Sakurada of MRI said that Vietnam’s enterprises have not been yet strong enough to participate in the global supply chain, especially as the technology level of Vietnam grows slower than other countries in region for 40 years. The expert said that Vietnam just stops at the first stage in the development of supporting industries. Although the policy has similarities with Japan which include a focus for the development of supporting industries, however, it still has huge difference from Japan’s.
According to Dr Yoichi Sakurada, Vietnam should develop Local Public Technology Centre (LPTC) to replace the model of the SMEs supporting centres which is inefficient. LPTC is set up by the central government, located in the provinces. The main function of these centres is to check the quality of enterprise products before launching them to the market. Accordingly, enterprises can link management agencies with their own business, as well as with research institutions to conduct research and mobilise resources.
Anh Phuong
Vietnamese
