Policy revision hoped to help supporting industry thrive after COVID-19

Boosting the development of the supporting industry is considered an important solution to help improve the quality and competitiveness of the Vietnamese economy and better serve the processing-manufacturing sector.

To promote the supporting industry’s growth, the Ministry of Industry and Trade (MoIT) is building a draft decree on amendments and supplementations to the current regulations on the development of the industry in a synchronic, comprehensive and strategic manner.

Vu Thu Nga, Deputy General Director of Deloitte Vietnam, held that a number of recent decrees as well as efforts in completing the legal corridor for the development of the supporting industry have brought about positive effects. However, a number of regulations have still shown limit ations in the implementation process, requiring adjustments.

According to Nga, in order to help the sector thrive, it is necessary to apply preferential policies on outsourcing activities for industries prioritised for development, while reviewing and re-evaluating supply and value chains to add products of the supporting industry to the list of development priorities, and amending a number of regulations of relevant decrees to make them coherent with investment and tariff regulations.

Besides, authorised agencies should consider providing additional preferential and support policies for businesses, as well as adjusting and supplementing conditions of receiving incentives to attract more high-quality and effective projects in the field of supporting industry towards the goal of “green” and “clean” development set by the Government.

At the same time, businesses should actively review their conditions to evaluate their eligibility to enjoy incentives, and clearly understand changes in policies and impacts on their chances to receive preferential policies, she said.

Nga also advised businesses to report obstacles and difficulties facing them in the implementation of the policies and make proposals on new policies to the MoIT and business associations./.