City’s supporting industries underdeveloped

Thien Thanh Sanitaryware joint company



City’s supporting industries underdeveloped

Though supporting industries are crucial for economic development, HCMC has yet to find effective measures to attract investments in them. Speaking at a seminar in the city last Friday, HCMC vice chairman Le Manh Ha said the concepts of supporting and hi-tech industries as well as the status and development orientations of the sectors have not been clearly defined, resulting in their haphazard development.

This problem has hindered the implementation of a plan to local content in production and eroded the attractiveness of the country’s investment environment, Ha said.

Le Hoai Quoc, head of Saigon Hi-Tech Park Authority, said identifying the decisive factors for supporting industries development will help the city boost their growth.

The city should zone specific areas for supporting and high-tech industries and has consistent policies to back these sectors.

Vu Van Hoa, head of the HCMC Export Processing and Industrial Zones Authority (Hepza), said Vietnam has yet to determine key products to develop suitable supporting industries, and build up a mechanism and policies to assist investors. There is a lack of policies for supporting industries as well.

While Japan and South Korea deem supporting industries as vital, Vietnam has not attached much importance to them, Hoa said.

Hirotaka Yasuzumi, managing director of the Japan External Trade Organization (JETRO) in HCMC, called for Vietnam to focus its investments on specific areas for supporting and high-tech industries. This will form a network connecting foreign-invested and domestic enterprises in the production chain, thus facilitating the science-technology transfer process.

In fact, the biggest challenges for enterprises are capital and technology. Most of them are small and medium-sized enterprises (SMEs) with weak financial capability and low technologies.

Therefore, enterprises should receive assistance in tax, manpower training, credit and administrative procedures to make strong investments in supporting industries.

Experts and delegates at the seminar also agreed that current policies are not strong and effective enough to drive up supporting industries.

Hoa from Hepza said the Government has issued policies such as export-import tax incentives, investment credits and financial support for SMEs but in fact, the incentives are the same at those for other sectors.

Quoc from Saigon Hi-Tech Park said it is necessary to improve the incentives and encourage firms to set up a science and technology development fund.
Hung Le(http://english.thesaigontimes.vn)