HCM City develops support industry

HCM City develops support industry

The event will enable enterprises to seek more partners at home and abroad, improve supply capacity, expand production and engage in the global supply chain.

According to the organising board, 16 businesses operating in various fields such as electronics, automobile and mechanics want to find domestic suppliers.

The event is seen as among an array of measures the southern economic hub of Ho Chi Minh City is deploying to develop its support industry and improve product quality to join production chains of foreign direct investment (FDI) businesses.

The municipal Department of Industry and Trade proposed the city’s People’s Committee promulgate Decision No.15/2017/QD-UBND dated March 16, 2017 to help businesses and complete a project on support industry development through 2020.

The department suggested implementing policies encouraging investment in support industry to reduce imports and increase the ratio of locally processed and assembled products.

It recommended building communication programmes to promote outstanding industrial products and create unique ones to call for investment, as well as encouraging firms to renovate and increase productivity.

Director Pham Thanh Kien said the department will help businesses access land and connect them with foreign firms to establish a sustainable support industry network.

In 2018, the department will strengthen coordination with business associations to support firms operating in industrial and hi-tech parks, he added.

The HCM City Centre of Supporting Industries Development will work to boost links between local firms and FDI partners from Japan, the Republic of Korea and the EU through the programme “Developing good suppliers”.

In 2017, the city promulgated Decision 15 on financial assistance for industrial enterprises. Each would be able to get a loan of up to VND200 billion (US$8.81 million) for a project. To date, three out of 11 projects have been approved to receive the total assistance funds of VND200 billion.