Việt Nam has issued Decree 205/2025/NĐ-CP to accelerate the growth of its supporting industries, which are vital to reducing reliance on imported materials and enhancing domestic production. Despite progress, the sector still faces constraints in capital, technology, and supply chain connectivity. According to the Ministry of Industry and Trade (MoIT), foreign direct investment (FDI) in supporting industries has reached only about $20 billion since 2020, with domestic investment even lower. The new decree introduces breakthrough policies to address financing, R&D, and market access challenges. It also requires FDI firms seeking incentives to partner with local SMEs, fostering integration into global supply chains. Industrial development centres have been set up to help firms test products and access incentives, though implementation remains slow due to limited awareness and administrative delays. Provinces such as Bắc Ninh are leading efforts through local policies and partnerships with major corporations like Samsung. Experts emphasise that for Việt Nam to strengthen its industrial base, businesses must invest in R&D, adopt digital transformation, and upgrade technology to meet international standards. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News