International conference talks incentives for industrial development

Senior officials and international experts gathered at a conference in Hanoi on June 20 to seeks ways for effective industrial development in Vietnam.

Addressing the event, Deputy Prime Minister Hoang Trung Hai stressed the need for accurately identifying opportunities and challenges in order to devise suitable policies for the success of the National Strategy for Industrial Development through 2020. 

He pointed to the two-digit growth rate recorded for many years by the industrial sector and positive changes in the sector’s structure, including the increasing proportion of manufacturing and processing in the total industrial value and the expansion of the non-State and foreign-invested economic sectors. The industrial sector has become able to meet the supply of essential products for other production sectors as well as for consumption, thus enhancing the economy’s self sufficiency, the Deputy PM said. 

At the same time, he highlighted the existing weaknesses, particularly the low added value of products and the dependence on extensive growth. The support industry is under developed, while industrial development planning is of low quality, lacking a national vision. 

In particular, productivity and labour skill are low compared to many regional countries, the Deputy PM said, adding that only a small proportion of workers have good technical skills while the majority only received short-term training. 

Furthermore, technologies in use in the country are mostly outdated even compared to those used in regional countries, according to the government leader. 

He said therefore, the country faces great challenges in realising its goal of become an industrialized economy by 2020. 

Outlining the directions for industrial development policies, the Deputy PM said they should include incentives for small- and medium-sized enterprises, as well as support industry. 

Other focuses include training skills for both managerial staff and workers in tandem with improving infrastructure facilities to draw international investment, he added. 

Deputy PM Hai also emphasized the protection of intellectual property, saying that it will help raise the creativity and the development of science and technology in the industrial sector. 

Meanwhile, Head of the Committee Vuong Dinh Hue stressed the need for developing a roadmap for developing the national industry with medium- and long-term visions. 

He also suggested incentives be devised for industries of fundamental and strategic significance for fast and sustainable economic growth which will help enhance the economy’s self sufficiency as well as its role in the global production and distribution network. 

Echoing Hue’s opinion about focusing on key sectors, World Bank Country Director for Vietnam Victoria Kwakwa called for stronger shift to productivity-based growth. 

She also urged the Government to further promote the private sector, saying that without a strong and dynamic private sector, the industrialisation process will be slow. The World Bank is willing to assist Vietnam in developing the sector, she said.