At the meeting, these enterprises have raised some difficulties and expressed their hope to be supported by authorities of HCMC.

Chairman of HAMEE Do Phuoc Tong said some current policies are preventing mechanical manufacturing sector from development including tax policy, support policy, manufacturing space, participation into supporting industry chain supply for FDI enterprises, etc. Specifically, importers of machineries enjoy a Zero tax rate while importers of spare-parts are subject to 10% tax rate. This makes Vietnamese products difficult to compete with imported products. He suggested to soon determine key mechanical products of the city with suitable support policies. To create favourable conditions for enterprises in supporting industries to develop, in the process of negotiation with foreign partners, it requires a compulsory clause on purchasing a specific number of products manufactured by 100% Vietnamese manufacturers.

It is proposed by enterprises that the city need to strengthen human resource training, allocating funds to support them to invest new management systems to boost productivity and enhance product quality toward sustainable development. At the same time, the Decisions No 50/2015/QĐ - UBND and No 15/2017/QĐ - UBND are also proposed to be amended in favour of investors. Ministry of Finance need to quickly issue import tariffs in line with export tax or amended import tax regulations which came into effect since Sep 1 2016.

Director of Department of Industry and Trade of HCMC Pham Thanh Kien said the department will work with enterprises, business associations, in the coming time, to select key products of the city and put in place specific support solutions.

In his closing speech, Chairman Nguyen Thanh Phong said the city has defined its 4 key industries including mechanical engineering, electronics -IT, petrochemical, foodstuff processing. These 4 industries continue growing since 2016. However, there are still some bottlenecks need to be removed to boost growth.

He added the proposal of enterprises will be considered by the city or submitted to central government for consideration. He requested related agencies to review demand stimulus programs to create favourable conditions for enterprises to access to the city’s demand stimulus capital. At the same time, the city will support enterprises to promote products and seek consumption markets; working out support policies for enterprises to renew production technology; strengthening administrative reform; improving quality of human resource training through cooperation with academic institutes, universities, etc.

Chairman Phong also commits to work with business associations and enterprises in Mid of August and work out support policy systems for enterprises.

HCM CITYWEB