Mechanical engineering industry needs more incentives: PM

Prime Minister Nguyen Xuan Phuc speaks at the conference. (Photo: VNA)

Apart from the market, mechanic businesses need incentives to participate in national projects, access information and cutting-edge technologies, and step up technological application in order to improve their productivity and competitiveness, he said.

The sector would develop further if there are suitable macro policies, especially those on tax and interest rate, the leader said, adding it is a must to develop auto mechanics which has high added values, along with the processing industry and mechanic technologies in service of agriculture.

The leader suggested improving the quality of trade promotion activities to attract the world’s big investors in the domestic mechanic sector, and intensifying the fight against trade fraud and trafficking in this sphere.

He assigned the Ministry of Industry and Trade (MoIT) to devise the Government’s resolution on solutions to develop Vietnam’s mechanical engineering industry by 2030 with a vision towards 2035, which is expected to be issued at the end of this year.

The PM asked the State Bank of Vietnam to coordinate with the MoIT to study credit policies and mechanisms in support of mechanic firms.

Meanwhile, the Ministry of Agriculture and Rural Development and the Ministry of Natural Resources and Environment were asked to perfect regulations on land in service of large-scale agricultural production, thus facilitating agricultural mechanization.

Localities must play a more active role in attracting both domestic and foreign mechanic enterprises, and put forth preferential policies, he stressed, affirming that the Government always accompanies mechanic businesses, helping them optimize opportunities to further develop.

Vietnam is now home to about 21,000 mechanic firms of different scales, which demonstrates the determination of ministries, agencies and businesses to promote the domestic mechanic sector, as well as the increasing demand for mechanic technologies.

Speaking at the conference, Deputy PM Trinh Dinh Dung emphasized that mechanical engineering is a key industrial sector and a growth engine of the national development, given Vietnam’s process of industrialization and modernization.

The processing and manufacturing sector has reportedly made up nearly 40 percent of the net revenue of enterprises over the past years, with mechanic engineering accounting for more than 36 percent.