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Development of support industries needs strong encouraging policies
Thứ tư, 27/02/2019, 11:30 SA
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On January 27, HCMC Steering Board for Support Industry Development hosted an exclusive talk entitled: “Development of support industries attached with small and medium-sized businesses in HCMC”. Attending the talk include Mr. Le Thanh Hai – Secretary of HCMC’s Party Committee and 60 leaders of departments, research institutes, Management Board of Export processing zones – industrial parks and HCMC Business Association.

According to the statistics, small and medium-sized businesses in HCMC accounts for 95% of total businesses and 42% of labor force but only makes 21% of turnover and 6,7% of profit, 9,8% contributes to the budget.


Profit rate on all assets of small and medium-sized businesses is only 1, 8% compared to 6,9% of total support industry. According to Mr. Tat Thanh Cang, Vice Chairman of HCMC People’s Committee, support industry of the whole country in general and of HCMC in particular is weak and insufficient. Specifically, many international hi-tech corporations have chosen Vietnam as investment destination such as Intel, Samsung, etc, but there is just a few local companies able to supply materials, spare parts for these firms, accounting for a very small amount in total number of businesses supplying products of support industry.


At the talk, many opinions showed that support industry in HCMC is still low due to development encouraging policies, these policies are not directly and suitable with specific characteristics of support industry. These policies are not preferential than current policies that applied for other industries, it is also not easy for businesses to access support policies due to inadequate regulations. In order to develop support industry quickly and sustainably, the State needs stronger and synchronous encouraging policies of tax, credit, interest rate, land, human resource, administrative reforms, etc.

 

 


Through the above opinions, especially 53 suggestions of delegates at the talk, Mr. Le Thanh Hai concluded that HCMC will generate and add to documents of the ongoing Congress of the Party Committee of HCMC on economic development in general and industry development in particular. At the same time, Mr. Hai suggested HCMC People’s Committee soon works out stimulus programs through investment in support industry in the direction of administrative reform, revision of procedures to provide maximum support to businesses.

 

HCM CityWeb

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