Minister clarifies industry and trade issues
Minister of Industry and Trade Vu Huy Hoang held a National Assembly Question and Answer session in Hanoi on November 17, easing concerns over the underperformance of large-scale hydropower plants, support industry and the crackdown on smuggling and counterfeits.
He refuted a rumour that high-capacity hydropower plants were running at a lower capacity than expected and were purchasing power from non-State producers and foreign suppliers, calling the claims groundless.
Hoang mentioned the Hoa Binh hydropower plant, which ran at full capacity most years. Similarly, Son La plant began its operation three years ahead of schedule and has exceeded production targets.
The ministry called upon the Electricity Vietnam to buy power from small hydropower plants, making it easier for them to boost their power generation.
Touching upon problems in the support industry, Hoang said the government approved a master plan until 2010 with a vision to 2020 in 2007. Four years later, the Prime Minister issued a series of policies for the manufacture of spare parts used in automobiles, electronics, garment, footwear and plastics.
The industry requires an extensive chain of supplies, which in turn will lower the end prices. In the meantime, the domestic market only has a moderate demand, he pointed out. With globalisation in full swing, it is difficult to enter the global value chain, which is already controlled by business powerhouses, he added.
Elaborating on this, the minister revealed that most raw materials, like steel and plastic, were imported, making the end-products more expenses than those produced by international rivals.
Another problem in the support industries is the shortage of skilled labour. Due to close cooperation with the government since 2011, three incentive packages for the industry have come to life.
The ministry has submitted a draft decree on the expansion of support mechanisms and policies to the cabinet. It hopes the NA considers issuing a law next year, considering it a legal framework for the industry, he added.
At the end of the session, Hoang acknowledged shortcomings in market management that led to the proliferation of counterfeits, and said the concerted efforts of the Central Steering Committee 389 for Anti-Smuggling, Counterfeit Goods and Trade Fraud led by Deputy Prime Minister Nguyen Xuan Phuc would surely improve the situation.
Hoang is due to respond to more lawmakers’ questions in Hanoi on November 18.