Conference discusses solutions to promote supporting industry

In his opening address, Deputy Prime Minister Trinh Dinh Dung emphasized the country’s supporting industry has been able to meet current demand but the scale and capability of supporting industry businesses remained limited.

The country has over 3,000 businesses operating in the supporting industry, accounting for 4.5% of businesses in the processing and manufacturing sectors, generating more than 550,000 jobs.

Deputy PM Dung said Vietnam currently lacks spearhead businesses who are able to lead the development of the supporting industry.

At present, few major businesses like Samsung and Truong Hai have backed the development of supporting industries while several businesses have paid  no attention to research and development activities, noted Deputy PM Dung.

Minister of Industry and Trade Tran Tuan Anh said if the supporting industry struggles to develop, there will be difficulties in FDI attraction. Heavy dependence on imported components and parts has lowered the added value of the manufacturing industry compared to other nations in the region.

Therefore, although the manufacturing industry has made up 90% of the national economy’s net revenue of production, it has contributed only 15% to GDP.

This figure is lower than the average level of 20% from ASEAN , 26%  from Thailand, 28% from the Republic of Korea, 22% from Cambodia or 36% from China.