Proposal to establish a financial fund exclusively for supporting industry enterprises

	Completing the State Financial Report
	Reducing the total number of public investment projects in the 2021-2025 period to less than 5,000
	Instructions on accounting for non-budget state financial funds

Vietnamese supporting industry enterprises need a lot of support to develop. In the photo: Production activities at THT Industry Co., Ltd.

The current situation shows that enterprises in the supporting industry still face many difficulties when most of them are small and medium-sized enterprises, so it is more difficult to recover after being affected by the pandemic.

In particular, for enterprises in the supporting industry in Hanoi, one of the difficulties is that the investment in construction and development of the supporting industry is still difficult due to the cost of renting production premises, labor and other problems. Other services in Hanoi are high.

More specifically on this issue, Le Quy Kha, Chairman of the Board of Directors of TOMECO Electromechanical Joint Stock Company, said that from now to 2023, difficulties with supporting industry enterprises in particular and the business community in general continue, especially pressure from the financial situation, inflation in the world may affect Vietnam.

Although the Government and ministries and sectors are operating very well, inflation is under control, and the macro-economy is stable, there will still be impacts, so the support from state agencies is only secondary, businesses must be self-reliant.

In addition, Kha also said that businesses still face difficulties due to frequent changes in policies. While these changes are largely consistent, businesses often have a lag to catch up. For example, for many supporting industry enterprises, the construction of factories and the purchase of machinery and equipment usually takes 2-3 years, and when it is put into operation, it is no longer consistent with current policies, thus creating a huge risk.

Therefore, Le Quy Kha suggested that management agencies and industry associations need to improve solutions to help businesses access information quickly, so that supporting industry enterprises can catch up with timely policies.

In addition, businesses also recommend coordination in the supply and training of high-quality human resources to be more suitable for supporting industries that require high accuracy as well as to meet the technological shift from multinational production manufacturers to Vietnam.

As the representative agency for the supporting industry business community in Hanoi, Nguyen Hoang, Chairman of the Board of Directors of N&G Group Joint Stock Company, Chairman of Hanoi Association of Supporting Industry Enterprises (Hansiba) proposed the Government soon develop the Law on Supporting Industry and submit it to the National Assembly for promulgation as soon as possible. In addition, management agencies need to develop specific plans and roadmaps to develop supporting industry enterprises to account for 5-10% of the total number of enterprises by 2025.

He also said that the development of the supporting industry cannot be spread out, but needs to be planned into specific economic regions, it is necessary to clarify which regions produce components for what industry. Especially, businesses also want to there is an urgent solution package, especially in terms of capital because currently many conditions in loans in terms of interest rates and collateral are still obstacles for enterprises producing supporting industries.

“It is necessary to establish a financial fund specifically for supporting industry enterprises. This will be an open fund to attract all domestic and international support sources to invest together,” said Nguyen Hoang.

Meeting of the Executive Committee of the Association of Supporting Industry Enterprises in Hanoi on October 13. Photo: H.Deu

Sharing the same opinion, Ms. Tran Thi Lan Anh, General Secretary of the Vietnam Confederation of Trade and Industry (VCCI), said that, despite the decrees and circulars on the development of supporting industries, supporting industry enterprises still need a set of laws to get more support, helping policies really come to life. In addition, supporting industry enterprises need to improve their capacity and technology to avoid dependence and develop linkages to become leading enterprises in the chain, not only at the level of participation in the global supply chain of foreign enterprises.

Also on business development, Nguyen Hoang also expressed his proposal to study the establishment of enterprises with 100% state capital or share capital with private enterprises to produce key supporting industry products; after a period of operation, it will be auctioned for private management to develop, lead and connect with other businesses.

With the above requirements, supporting industry enterprises need support and assistance from industry associations. For example, the Hanoi Association of Supporting Industry Enterprises (Hansiba) in recent years has carried out many activities to support businesses, such as training support, business linkages, technology transfer, and trade promotion. commercial; put into operation the Supporting Industry Vocational Academy; forming the Vietnam - Japan supporting industry complex on the basis of the cooperation results of the Japanese business group (represented by Onaga company) and the member enterprises of HANSIBA in Vietnam to jointly link and develop the Vietnamese supporting industry. Nam dominates the domestic market share and joins the global production chain.

The association's representative said that it will promote the construction of ready-made factories in the Hanoi South Supporting Industry Industrial Park (HANSSIP) for HANSIBA member enterprises to cooperate with Japanese enterprises with preferential rental, factory rent exemption for six months, deferred payment after the next 18 months, reduced rental costs for workers and housing for experts and business leaders.