Vietnam is set to roll out a series of policies aimed at strengthening its local suppliers in pivotal sectors such as garment and textile, footwear, electronics, automobile production, and mechanical engineering. This move, announced on Monday (Aug 21), is seen as a strategic step to bolster the nation’s supporting industries.
Central to these policies is an enticing interest rate subsidy of 3%. This initiative is projected to spur local enterprises to elevate their game, positioning them to seamlessly integrate into the supply chains of global giants, as per insights from the Ministry of Industry and Trade.
But that’s not all. The ministry’s comprehensive package also encompasses corporate income tax breaks, robust investment promotion, advanced human resource training, and a focus on research, development, and technology transfer. These measures are tailored to ensure that approximately 5,000 enterprises in the part-supplying sectors reap the benefits.
Also read: Seafood Crisis Looms in Hong Kong: The Fukushima Ripple Effect
Pham Tuan Anh, the deputy director of the ministry’s Industry Department, emphasized the ministry’s commitment to working hand-in-hand with the government. The goal? To magnetize more investments into the supporting industry, thereby amplifying the local procurement rate.
However, it’s worth noting that Vietnam’s local procurement rate in some industrial sectors has been on the lower side. Data from the Vietnam Association for Supporting Industries reveals that in 2022, the rate stood at 5-20% for automobile manufacturing, 5-10% for electronics, 30% for both footwear and garment, and a mere 1-2% for the high-tech industry.
Source: The Star.
