Land planning urged for supporting industry

The supporting industry is a vital pillar in Vietnam's private economy, enhancing domestic production capacity and attracting foreign investment.

However, the country faces significant challenges in promoting this sector, including the lack of effective solutions to address land allocation for the supporting industry.

According to Mr. Phan Dang Tuat, Chairman of the Vietnam Association of Supporting Industries, the manufacturing sector—commonly referred to as part of the supporting industry—encompasses four main groups: electronic components, mechanics, plastics and rubber, and ancillary materials.

Together, these fields form a massive industry that requires cutting-edge technology and techniques, serving as the foundation for national economic growth. However, Vietnam remains underdeveloped in this critical area.

To address these challenges, Mr. Tuat proposed 10 recommendations for advancing the supporting industry.

Key proposals include redefining the essence of the supporting industry, establishing a dedicated development fund, and creating an incubator system with equipment and machinery tailored to actual needs.

He also called for collaboration with international inspection centers to help businesses ensure product quality, as well as launching a national program on materials.

Mr. Tuat emphasized the need for policies that encourage large domestic enterprises to mentor smaller firms. He cited South Korea's approach, which prohibits large companies from producing 1,600 specific components to give smaller businesses opportunities to grow. Additionally, he stressed the importance of specific policy tools to connect foreign direct investment (FDI) enterprises with local businesses.

A crucial recommendation was to allocate dedicated land for the supporting industry, potentially offering initial fee waivers, with charges applied only once businesses become profitable.

He also suggested establishing a specialized agency to oversee the supporting industry, serving as a focal point for management, and called for the enactment of a separate law to regulate and promote the industry.