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Official Gazette

Monday, August 19, 2019

Credit package proposed for support industry

Updated: 10:12’ - 23/04/2019
The Ministry of Industry and Trade (MoIT) has proposed a VND 100 trillion (USD 4.31 billion) preferential credit package for the development of the country’s support industry.

Chip panels are produced at Manutronic Vietnam JSC at Tien Son Industrial Park in Bac Ninh province's Tien Du district__Photo: VNA
 
The ministry says that Vietnamese support industry products could have high competitiveness, meeting 45 percent of essential demand and local consumption, and accounting for 25 percent of total export value by 2020. The support industry plans to meet 70 percent of local demand by 2030.

It also planned to have 1,000 firms capable of supplying products to assembly companies and multinational groups in Vietnam.

The local support industry would meet the requirements of localization progress of production sectors including 40 to 45 percent for garment and textile, and leather shoes, and 10 to 20 percent to assembly of cars with fewer than nine seats.

To realize the set targets, the ministry has proposed a range of solutions in terms of policies and market development for the support industry.

Accordingly, the Government should continue to build and complete policies to promote development of some key support industries. Policies to encourage localities to use their budgets for support industry would also be promulgated.

In addition, the Government should have mechanisms to develop some sectors such as automobile, electronics, garment and textile, leather shoes and material industry.

Businesses should be given support to improve their capacity. The country would build three centers for the development of the support industry.

Preferential credit would also be given to the sector. Specially, the VND 100 trillion credit package would have similar mechanisms to the credit package for hi-tech agriculture development. The package for hi-tech agriculture development has the participation of eight commercial banks. The banks would provide loans to organizations and individuals who want to invest in clean and hi-tech agriculture. The interest rates would be 0.5 to 1.5 percentage points lower than normal levels.

Prime Minister Nguyen Xuan Phuc assigned the Ministry of Planning and Investment in cooperation with the Ministry of Finance to arrange capital to build the three centers. The MoIT would study for the construction of the centers. The State Bank of Vietnam would provide preferential mechanism on capital and loans to develop prioritized sectors within 5 to 10 years.

The Ministry of Science and Technology would consider adjusting access mechanisms of the Vietnam National Fund for Science and Technology to make them simpler for support industry firms. In addition, each locality should have action programs to develop the support industry.

Statistics from the MoIT showed that Vietnam now has some 1,800 part suppliers. However, only 300 firms are in the supply chains of multinational groups.- (VNS/VLLF)
 

 

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