More solutions to assist Hanoi supporting industry proposed

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Nguyen Tung - Khac Kien 16:05, 2017/08/08

Hanoi enterprises have strong advantage in the mechanical industry. However, they need stronger networking and improve competitiveness to take better use of opportunities. Such is the suggestion made at a conference held to contribute to the supporting industry development plan on August 7 in Hanoi by the Hanoi Supporting Industries Business Association (HANSIBA).

According to statistics, Hanoi is currently having 200 to 250 enterprises with supporting industrial products. The goal of the city is to have 900 to one thousand enterprises working in this field by 2020. However, many enterprises show their concerns with regard to the rather complicated process to attain a supporting industrial certificate. At the conference, Phan Nhat Minh, the CEO of Nhat Minh Company, stressed that domestic enterprises need to receive supports similar to those offered to Samsung, or at least 50%. Besides, enterprises at the conference also said that the current policies to assist supporting industries are still uneffective and implies high risks.

Production of Ha Yen JSC at Supporting Industrial Complex Hanoi South.

According to Nguyen Anh Tuan, the Chairman of the board of Thang Long TECH Limited Company and the member of Standing Committee of HANSIBA Executive Board, the proposal did not mention supporting machinery or equipment. He suggested the plan to extend the government assistence to the support industry beyond 2025. At the same time, the city needs to support the free annual trade fairs for supporting industries, taking the opportunity to increase intra-block connectivity right at the fair. Businesses themselves, if taking products to exhibitions at overseas fairs, should also focus on the products associated with other enterprises in the block in order to create the supply chain. “Instead of attempting to enter the value chain of foreign direct investment enterprises, we should focus on moving from value chain to create supply chain” – Mr. Nguyen Anh Tuan pointed out.

In addition, To Van Nhat the director of European Green Plastic business said that enterprises are finding it difficult to sell their products as there are no clear standards on quality and price. “The supporting industries need an independent board to assess the quality of supplying industries’ products, as well as suggesting a standard price for each product”, said To Van Nhat.

The feedbacks at the conference raised concerns over the supporting industries in Vietnam which still remain weak, so the government needs to support the enterprise community with appropriate policies and regulations. Many opinions suggest the plan to include requirements for human resources development and simplified procedures for enterprises to be eligible to operate in supporting industries.

With suggestions from more than 20 participants at the conference and 50 suggestions received through email, the HANSIBA proposed 9 suggestions to be included in the Plan to create one thousand businesses in the supporting industry.

First and foremost, the plan should simplify procedures for determining an enterprise operating in the supporting industry. With this being said, members of HANSIBA should be taken as the standards for evaluation.

Secondly, the Association suggest the government and Hanoi authorities to assist the connection and issue regulations covering the order placing process by foreign enterprises to Vietnamese businesses.

Thirdly, the Association suggest the authorities to issue incentives that help commercial banks finance the supporting industries. Specifically, funding for supporting enterprises could be sourced from Hanoi investment fund or from ODA fund.

Fourthly, the plan suggest the supporting industries need to have a specialized industrial complex.

Fifthly, the Association asked for free training for workforce in supporting industries .

Sixthly, the Association suggest the plan should include a specialized industrial complex and enterprise incubator to form a development chain of enterprises in supporting industries will be established.

The Association also recommended the plan should have provisions to assist startups, establish flagship enterprises either with national funding or with FDI. Also the Hanoi supporting industries need a steering committee, the Association concluded.

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