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Official Gazette

Monday, October 3, 2022

Formulation of a law on industrial development proposed

Updated: 12:40’ - 12/12/2021
The Ministry of Industry and Trade has proposed formulating a law on industrial development, focusing on processing and manufacturing industries.

A foreign customer seeks information about products of the Viet Au Engineering JSC. at the M-Tech Osaka 2021 in Japan__Photo: VNA

Accordingly, the draft law would not contain general provisions governing all industries but focus on key processing and manufacturing industries prioritized for development like supporting industry, electronics industry (except transceivers and software technology), mechanical engineering; manufacturing industry serving the energy sector; and other industries following socio-economic development orientations in each period.

Most importantly, the draft law would specify criteria and orientations for industrial development, aiming to create a legal basis for the Government to promulgate an industrial development program in each period, place the responsibility to implement, and arrange resources for implementation of, industrial development programs to central and local agencies, and adopt mechanisms for overseeing and evaluating implementation outcomes of these program.    

With a view to improving competitiveness of businesses and human resources of the industrial sector, the draft law would frame policies on developing markets for industrial products, providing credit supports for industrial enterprises, developing human resources for the industry sector, supporting research and development as well as technology application, transfer and renewal, and market promotion and connection.

Potential businesses and market-leading enterprises would be promoted through policies aimed at encouraging mergers and acquisitions and development of international markets. Centers for improvement of industrial productivity and funds for restructuring industrial enterprises would be set up. At the same time, a national database and an industrial statistics system would be built, alongside the formulation of a system of evaluation indicators for the industrial sector.

Particularly, the draft law would provide state management of foreign investment in industrial development, specifying such contents as incentives for FDI projects, foreign holding rates, subjects eligible for special investment incentives, etc.
Last but not least, the draft law would provide policies on development of industrial clusters so as to attract foreign investment, exploit land resources for development of foundation industries, create more favorable environment for linking R&D to production activities, taking advantage and competitive edges of each region and localities; and develop investment production according the value chain model.- (VLLF)

 

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