News dalla rete ITA

7 Aprile 2021

Vietnam

STABLE SUPPORTING INDUSTRIES CRUCIAL TO LOCAL MANUFACTURING

Update: April, 07/2021 - 08:19HÀ NỘI – Stable supporting industries and restructuring of chains forindustrial production are crucial to improving the country’s manufacturingsector, according to Việt Nam Chamber of Commerce and Industry (VCCI).VCCI has worked out a plan to develop appropriate policies for supportingindustries towards minimising reliance on imports of raw materials as well asreducing prolonged, simple and low-value-added processes, like packaging,production of manuals, and plastic components.This will enable Việt Nam to not only create more value and put the country ina better position in the global supply chain, but will create more opportunitiesfor Việt Nam in terms of free trade agreements (FTAs).According to VCCI, high dependence on imports for supportingindustries will lead to higher risks and increase the costs for enterprises.Đậu Anh Tuấn, VCCI’s head of Legal Department, said Việt Nam's COVID-19response could make it an attractive investment destination as economiesseek to make their supply chains less dependent on China.Foreign investors were considering shifting investments to Việt Nam due totheir trust in Việt Nam's safety amid the pandemic. With a number of newgeneration FTAs, Việt Nam would have more opportunities if the Governmentcould offer better policies and clear targets to encourage and createfavourable conditions for Vietnamese businesses and attract foreigninvestment into prioritised manufacturing sectors.Deputy Minister of Industry and Trade Đỗ Thắng Hải said that from March, theministry was asking businesses to promote production and boost theconstruction of large-scale energy and industrial projects to ensure sufficientelectricity supply, contributing to the country’s economic growth.The ministry also planned to conduct appropriate solutions andgenerate incentives for businesses relating to raw materials, production plans,processing, markets and distributions as well, he said.Economic recoveryViệt Nam’s industrial sector still grew 6.5 per cent year-on-year in the firstthree months of 2021, with the manufacturing and processing sectorexpanding 9.45 per cent and remaining the main engine of economic growth.Despite the effects of COVID-19, local manufacturers have sought new waysto do business. In the first quarter of this year, textile, garment and footwearmanufacturers showed more positive signals compared to the same periodlast year. Lê Tiến Trường, CEO of Vietnam Textile and Garment Group (Vinatex), saidwhile many firms involved in industrial production were concerned about thelack of orders due to the influence of the COVID-19 pandemic, textile andgarment businesses were enjoying a surge in orders.He said that at present, Vietnamese textile and apparel enterprises, includingthose of the group, had orders until the end of April 2021.Notably, items such as knitwear and popular goods have orders until July andAugust of 2021."It is a good signal for the recovery process of Việt Nam's garment and textilesector, especially when Việt Nam is in a good position in the global supplychain after the COVID-19 crisis," said Trường.Many manufacturing industries have experienced difficulties and challengesover the last year.According to the Vietnam Steel Association, from the beginning of this year,Việt Nam’s steel market has seen a low sales volume with stagnantproduction due to decreasing demand from construction businesses.Nguyễn Chi Sáng, General Secretary of the Vietnam Association ofMechanical Industry (VAMI), said the biggest problem for enterprises was alack of orders. - VNS (ICE HO CHI MINH CITY)


Fonte notizia: Vietnam News