Companies that provide support to manufacturing and processing industries may have grown steadily in recent years but many are still struggling to connect to the global market. Minister of Industry and Trade Trần Tuấn Anh spoke to Vietnam News Agency about the best way forward for local companies to reach a wider customer base.
How do you assess the manufacturing industry and supporting industries in Việt Nam today?
We know the processing and manufacturing industry is developing day by day and plays a very important role in Việt Nam’s economic structure. In export growth, processing and manufacturing industries play a huge role. In 2019, the proportion of processed and manufactured products for export has increased to 92.82 per cent from 78 per cent last year.
In the context of international deep and broad integration, the trend of industrial development is heading towards modernisation with the increasing proportion and role of processing and manufacturing industries.
The processing and manufacturing industry has a great role to play attracting investment and development in Việt Nam. Of the total US$32 billion investment in Việt Nam’s economic sectors last year, nearly $22 billion was in the processing and manufacturing industry, and that shows that this is not only Việt Nam’s current industrialisation strategy, but also its sustainable integration and import-export strategy.
Globally these industries are witnessing huge changes in the context of the Fourth Industrial Revolution, globalisation, especially due to the impact of the COVID-19 pandemic. These factors create a great opportunity for Việt Nam to approach changing trends in the formation of supply chains and the movement of investment sources.
Accurate planning and strategy as well as ensuring the implementation process on the basis of transparency are essential. not only for the Government of Việt Nam but also the business community and investors.
The ability to connect and participate in the production chain is always the weakness of Vietnamese enterprises. What are the solutions from the Ministry of Industry and Trade to help businesses connect to the worldwide market?
We have signed a Free Trade Agreement with the European Union which will take effect from August 1, creating favourable conditions from tariff reductions, preferential market access and other services.
Clearly in such a context, connecting businesses and how to get information for businesses to meet each other is very important. The Ministry of Industry and Trade has implemented a database system in the manufacturing and processing industry, which can be considered as the industry’s first data system.
This system is new and limited, only in some areas of processing and manufacturing such as the automobile industry, food processing, electronics, footwear and textile industries. But this system will help investors capture fully and promptly information about policies as well as facilities and comprehensive development conditions, especially those related to the system of industries in Viet Nam.
In addition, domestic investors will also be able to capture and better understand the possibility of participating in the supply chain of foreign investors in Việt Nam. From such basis, we will have conditions to affirm and continue to strengthen our position in this supply chain.
This will also be an extremely an important database system for the Government and the Ministry of Industry and Trade to continue to firmly grasp and thoroughly understand the industry, ensuring quick construction and planning, appropriate and accurate development policies and at the same time improve the environment on the basis of transparency, openness and consistency.
Finally, we believe this is an opportunity for domestic and foreign investors to easily connect with each other to continue to promote the development of the trading system based on the database. Then we will continue to build and develop e-commerce platforms, creating a continuous connection between businesses as well as between the state and businesses.
You mentioned e-commerce floor, promoting e-commerce for businesses. Can you elaborate on this?
The Ministry of Industry and Trade is continuing to innovate the mode of trade promotion, especially e-commerce promotions by the Ministry of Industry and Trade which have already taken place with countries such as Korea, Japan, Australia, or between ASEAN countries and China.
These activities are not limited to the Governments’ activities, but also to the business community and are highly appreciated and actively participated by businesses.
In the future, the Ministry will continue to improve both legal institutions as well as electronic platforms to promote e-commerce activities.
The Ministry is continuing to monitor and urge the implementation of projects which are still pending and especially those in the framework of the public investment package issued by the Government. We will create favourable conditions for businesses and economic sectors to participate in public investment packages to both contribute to growth and continue to create markets for the consumption of products of industries as well as domestic material manufacturing industries.
With e-commerce, we will try to create platforms in related ministries and sectors such as Ministry of Information and Communications and the State Bank to ensure sustainable e-commerce development, ensuring the protection of interests for consumers, businesses and effectively fight against commercial frauds as well as the trading of counterfeit and banned goods. — VNS