Deputy PM okays plan to restructure industrial sector

Deputy PM okays plan to restructure industrial sector, illustration photo

The plan aims to realise Resolution No.24/2016/QH14 on economic reshuffle in 2016-2020 adopted at the second session of the 14th National Assembly.

The plan sets the goal to raise the proportion of industry and construction in the gross domestic product (GDP) to 30-35% by 2020. The proportion should be kept above 35 percent in the following years up to 2025.

The ratio of manufactured and processed goods in the total export turnover is projected to be between 85-90 percent by 2020 and above 85% in the next five years.

Labour in the industry and construction field is expected to account for 25-30 percent of the total workforce.

The annual average productivity growth rate in industry will be higher than 5.5% by 2020 and from 6-7% in the period to 2025, while the gap in industrial competitiveness index with ASEAN-4 nations (Singapore, Malaysia, Thailand and the Philippines) will be narrowed.

The manufacturing value added (MVA) average growth is hoped to stand at 8-10% by 2020.

The restructuring plan aims to increase productivity, quality and added value of many industries by the application of advanced production organisation, high technologies and technologies of the 4.0 Industrial Revolution in combination with environmental protection and response to climate change.

The plan will promote the economical and effective use of natural resources and energy in industrial production, implement a roadmap to replace outdated machineries and equipment and close down polluting factories.

Another target is to build and upgrade value chains for a number of industries such as garment-textile, footwear, chemicals, food and electronics in order for them to join the global production network..

It looks to develop the domestic steel industry, enhance the efficiency of the mining sector, especially for coal, oil and gas industries.

Large-scale businesses are also encouraged to engage in the automobile industry. Attention will be paid to developing the support industry in electronics, mechanics, garment-textile, and footwear.

Priority will be given to the processing industry for agro-farm produce and aquatic products, especially those have competitive edge.

Attracting investment in clean energy, renewable energy and new energy to ensure the national energy security, green growth targets, and mitigation of climate change impacts, is also one of the goals of the restructuring plan.

The plan also sets the tasks of stepping up the equitisation and divestment of State capital at State-run enterprises and increasing competitiveness of private industrial companies.