Vietnam has continuously enjoyed a growth in its industrial exportof between 15-20 percent over the past decade but its products accountedfor only 0.74 percent of the global market.
According to the Ministry of Planning and Investment, Vietnam ’sturnover from industrial exports in the first eight months of this yearreached nearly 23 billion USD, an annual rise of 16 percent. However,the increase is due to high prices rather than greater volume of exportsas several staples such as crude oil and coal have seen a drop inexports.
In addition to the slow recovery of theworld market after the economic crisis, poor competitiveness fromout-dated production technologies is a major factor behind the poor saleof Vietnam ’s industrial goods.
Out of thecountry’s exports, industrial goods account for almost 60 percent,mainly products from labour-intensive sectors that depend mostly onimported materials. The export turnover of hi-tech products is estimatedto make up only 10 percent of the country’s total industrial exportturnover.
Former Trade Minister Truong Dinh Tuyensaid Vietnam ’s industrial sector mainly depends on processing andassembling while supporting industries are yet to develop.
He expressed concerns that foreign assembly plants may withdraw fromthe Vietnamese market as they can’t find local suppliers of spare partsand rising labour costs are putting them under pressure .
To increase the competitiveness of Vietnamese industrial goods’, theMinistry of Industry and Trade has recently submitted a plan to theGovernment to develop supporting industries.
Underthe plan, supporting industries for five key industries, includinggarments, footwear, electronics, auto parts and mechanical engineeringwill enjoy preferential policies in terms of investments, developing themarket as well as science and technology and infrastructures.
Projects in these fields will be exempt from corporate income tax forfour years since they have taxable incomes and enjoy a 50-percent taxreduction in the following nine years./.
According to the Ministry of Planning and Investment, Vietnam ’sturnover from industrial exports in the first eight months of this yearreached nearly 23 billion USD, an annual rise of 16 percent. However,the increase is due to high prices rather than greater volume of exportsas several staples such as crude oil and coal have seen a drop inexports.
In addition to the slow recovery of theworld market after the economic crisis, poor competitiveness fromout-dated production technologies is a major factor behind the poor saleof Vietnam ’s industrial goods.
Out of thecountry’s exports, industrial goods account for almost 60 percent,mainly products from labour-intensive sectors that depend mostly onimported materials. The export turnover of hi-tech products is estimatedto make up only 10 percent of the country’s total industrial exportturnover.
Former Trade Minister Truong Dinh Tuyensaid Vietnam ’s industrial sector mainly depends on processing andassembling while supporting industries are yet to develop.
He expressed concerns that foreign assembly plants may withdraw fromthe Vietnamese market as they can’t find local suppliers of spare partsand rising labour costs are putting them under pressure .
To increase the competitiveness of Vietnamese industrial goods’, theMinistry of Industry and Trade has recently submitted a plan to theGovernment to develop supporting industries.
Underthe plan, supporting industries for five key industries, includinggarments, footwear, electronics, auto parts and mechanical engineeringwill enjoy preferential policies in terms of investments, developing themarket as well as science and technology and infrastructures.
Projects in these fields will be exempt from corporate income tax forfour years since they have taxable incomes and enjoy a 50-percent taxreduction in the following nine years./.
