HCMC pushes development of support industries

Updated 8:27' 4/10/2018
Illustrative image (Source: VEN)
Ho Chi Minh City has been focusing on the development of support industries by providing production space, promoting links with businesses, and coordinating with localities on joint development of this important sector.
Centralized solutions

According to the Ho Chi Minh City Department of Industry and Trade, the city has been focusing on support industries and gradually enhancing product quality to help domestic businesses integrate into the supply chain of foreign-invested companies.

To achieve this goals, Ho Chi Minh City People’s Committee issued a decree a year ago (Decision 15/2017/QD-UBND) on assisting businesses to invest in the development of support industries and completing the project on support industry development by 2020 with a focus on perfecting mechanisms and policies, promoting investment attraction and improving local content.

Two industries forecast to need more support products are auto manufacturing and electricity-electronics. Local department of industry and trade is seeking to promote communication programs to introduce 38 industrial and support industry products, implement trade promotion activities, encourage businesses to strengthen innovation, and enhance capacity.

Pham Thanh Kien, director of the Ho Chi Minh City Department of Industry and Trade, said that to meet the needs of support industry businesses and create favorable conditions for them to expand trade and production activities, the department is studying proposals to support production space.

Promoting links

The local department of industry and trade has also strengthened cooperation with foreign-invested companies to help them select potential suppliers.

Specifically, the Ho Chi Minh City Center of Support Industries Development has cooperated with Samsung in the search for potential domestic businesses to help them improve capacity and productivity so they can become suppliers of the electronics giant.

The department has also implemented financial assistance for support industry businesses. Each eligible firm will be able to get a loan of up to VND200 billion for a project. To date, three out of 11 projects have been approved to receive total assistance of more than VND200 billion.

The local department of industry and trade is also working with the Ho Chi Minh City Export Processing and Industrial Zones Authority and the Saigon Hi-tech Park to organize a fair for support industry suppliers.