These companies provided essential, high-quality parts for larger enterprises to allow them to carry out business in Vietnam.

According to Resolution 115/NQ-CP, Vietnamese enterprises will be able to produce highly competitive supporting industrial products, meeting 45 percent of the essential needs for domestic production and consumption, accounting for about 11 percent of industrial production value by 2025.

About 1,000 enterprises are expected to be capable of supplying directly to assembly enterprises and multinational corporations, of which domestic enterprises account for about 30 percent by 2025.

By 2030, supporting industrial products will meet 70 percent of the demand; accounting for about 14 percent of industrial production value.

About 2,000 enterprises will be capable of supplying directly to assemblers and multinational corporations in the territory of the country by 2030.

To accomplish the above objectives, the resolution offers groups incentives including developing, improving and implementing effectively and synchronously specific mechanisms and policies to develop supporting industries and create favourable conditions.

The resolution also notes the implementation of preferential interest rate policies for supporting industry enterprises and processing and manufacturing industries.

Another solution is attracting investment effectively and promoting business links between Vietnamese and multinational enterprises, domestic and foreign production and assembly companies; building concentrated supporting industrial parks; and developing material industries to increase autonomy in raw materials.

Resolution 115/NQ-CP also emphasises promoting the development of domestic and foreign markets.

It will also improve scientific and technological capacities to develop and create a breakthrough in technology infrastructure, technology transfer, and enhance capacity to absorb technology.

In addition, the resolution also highlights developing human resources through national programmes and plans on skills improvements and links between training institutions and enterprises.

Finally, building and perfecting the statistical system to promote the connection between Vietnamese suppliers and multinational corporations; enhancing the effectiveness and efficiency of state management and policies on supporting industries; and improving the quality of statistics to ensure timely, complete and accurate information./.VNA

Creating global connections for supporting industries

Companies that provide support to manufacturing and processing industries may have grown steadily in recent years but many are still struggling to connect to the global market.

VN supporting firms need better policies to help them recover

The policies on supporting businesses have been designed well, but the support is not enough to help businesses recover losses, economists say.