The Ministry of Industry has handed the prime minister a list of industries that should receive special attention in the 2006-2010 period along with suggested financial incentives to develop these sectors in the years to come.

The automobile assembly is on the list of 'spearhead industries'

Industrial production accounts for a huge slice of Viet Nam’s gross domestic product. This year, it is tipped to grow by more than 16% and boost the nation’s GDP by 8.2%.

However, warns Deputy Minister of Industry Bui Xuan Khu, the sector is facing many difficulties now that Viet Nam is a member of the World Trade Organization.

First and foremost, Vietnamese and foreign firms are not well matched, for the simple reason that local companies are still small in size, scope and experience.

Second, Vietnamese products are often uncompetitive due to outdated technology and limited investment capital.

And while high-tech industry has developed at a relatively rapid rate, the growth in comparison to overseas is still poor.

In compiling the list of priority industries, the Ministry of Industry had to consider the available resources and potential markets.

Its final list comprises textiles and garments, leather footwear, handicrafts, woodworking, agricultural processing, timber processing, aqua products, aluminum and chemical production along with three of what are termed “spearhead industries”, namely mechanical engineering, electronics and new-technology products.

Among other things, the ministry says the clothing and footwear sectors will be developed to increase export turnover and create more jobs.

Another way to boost exports is to expand wood processing and the production of handicrafts that bear Vietnamese trademarks and have a proven track record when it comes to sales here and abroad.

By Quang Tuan - Translated by Thuy Hang