Small, super-small-sized supporting industry firms account for 97 percent

SGGP
According to the Industry Agency under the Ministry of Industry and Trade, after implementing the decree on development of supporting industry for four years, at the present, there are around 1,800 supporting industry enterprises, of which, around 300 enterprises are Vietnamese-owned and the rest is chain businesses.
Noticeably, industrial industry still depends mainly on foreign direct investment enterprises, and Vietnamese supporting industry enterprises have not participated much in global supply chain.

Particularly, domestic supporting industry mainly concentrates on processing and assembling phases whose value added is still low and spare parts and components depend largely on import. Industrial proportion in the gross domestic products changes slowly, at around 18 percent currently, much lower in comparison with industrialization requirement and other countries in the region.

According to experts, the main reason that caused domestic supporting industry to develop sluggishly is that when FDI enterprises made investments, supply chains followed them and established their own supply channels so it is difficult for Vietnamese enterprises to approach. However, frankly speaking, the level of development, administration and other conditions of domestic enterprises is still far from satisfying the requirements of FDI enterprises.

Currently, up to 97 percent of supporting industry enterprises are small-sized and super-small sized enterprises, making it quite difficult for them to access and develop supporting industry.

By Lac Phong – Translated by Thuy Doan

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