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VietNamNews

Support sector lacks clients

Update: November, 25/2015 - 07:51

Several support industry products are produced on a relatively big scale and are of high quality, and have been recognised as key items in the capital. — Photo vietq.vn

HA NOI (VNS) — Vietnamese businesses operating in the support industry are finding it hard to seek big customers due to their backward technologies and weak management.

Dam Tien Thang, deputy director of Ha Noi Department of Industry and Trade, told the conference called to review five years of a programme to develop the support industry from 2011 to 2015, held in Ha Noi last week that a majority of the enterprises had produced small and simple spare parts with low value adds.

"The reason is that the support industry system between foreign direct investment (FDI) and local firms has not been connected and does not support each other," Thang said.

However, he said, some domestic companies had the ability to join the multinational product value chain by providing spare parts for FDI firms in Viet Nam.

Ha Noi has established special industrial park (IPs) clusters for the support industry such as North Thang Long, Noi Bai and Minh Quang. The capital's support industry has not met the local market's demand but is participating in the export markets.

Several support industry products are produced on a relatively big scale and are of high quality, and have been recognised as key items in the capital.

Participants said the capital should develop a network of support industry businesses together with producers and assembly companies.

On the other hand, they should have a close connection of key industrial products while actively participating in the global production chain.

Nguyen Duc Thang from Ha Noi Supporting Industries Business Association said the decree No 111 issued on November 3, 2015, by Prime Minister Nguyen Tan Dung on developing the support industry was timely.

However, Thang said there were some issues in the decree such as preferential policies, support, and tax preferential which had not been stipulated clearly, and some unnecessary procedures which may create problems for businesses.

Experts said Ha Noi should continue to build the programme for developing the support industry from 2016 to 2020.

The city has made the support industry work hard to account for 30 per cent of total industrial value, meeting 50 per cent of local production demand and 30 per cent of export turnover.

In addition, there should be 1,500 businesses with technology and management ability to be eligible to provide spare parts for multinational groups. — VNS

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