The information was shared by representatives of businesses, localities, scientists and policy makers at a recent workshop in Hanoi to discuss measures to keep the industrial sector from lagging behind.

The Ministry of Industry reported that all provinces have industrial parks, but they have not developed as efficiently as expected. Many provinces have offered similar preferential policies on tax and land rental without considering their localities’ advantages. 

Dr Nguyen Thanh Thinh from the National Institute for Science, Technology, Strategy and Policy Studies suggested that Vietnam have an overall master plan detailing the combined development between sectors, localities and regions.

The fact is that despite intensive investment, the sugar and sugarcane sector does not have adequate materials for stable production. Similarly, the seafood sector is suffering from a serious lack of materials for production. In contrast, the coffee sector has adequate materials, but lacks modern processing assemble lines. Consequently, the coffee sector mostly exports raw products of low value and its trademark is little known worldwide. Meanwhile, due to improper material growing development policies, the garment sector, which is considered a key hard currency earner, mostly relies on imported materials and executes manufacturing contracts for foreign clients with low added value.

Economic researcher Tran Dinh Thien, deputy director of the Vietnam Economics Institute, said it is imperative to take into account key industrial sectors in which the State keeps the larger share.

“Many countries in the world do not pay attention to developing the metallurgy industry which is considered the cornerstone of Vietnam’s industrial sector. Instead they focus on the electronics and replaceable material industries as well as the clean energy industry. However, these industries have not received due attention in Vietnam’s industrial development strategy,” said Dr Thien.

Le Kim Hung, director of the Ninh Thuan provincial Industrial Department, said eight enterprises have registered to invest in wind energy projects. But he complained that Vietnam has not developed any detailed policies in this field.

At the workshop, the Ministry of Industry acknowledged this and said there are many areas that need recommendations and assistance from relevant ministries, agencies, enterprises and localities.