Support industries struggling with COVID-19

August 15, 2020 | 08:43

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There are few opportunities for businesses to develop support industries in Vietnam amid the global economic crisis caused by COVID-19, according to economists.

support industries struggling with covid 19

Illustrative image (Source: VNA)

Hanoi - There are few opportunities for businesses to develop support industries in Vietnam amid the global economic crisis caused by COVID-19, according to economists.

Dr Can Van Luc from the Research and Training Institute of the Bank for Investment and Development of Vietnam (BIDV) said the country is in the process of extensive and intensive global integration and many production chains such as mobile phones, electronic products, textiles and garments, footwear, farm produce processing, automobile, and oil refining, which are all key export sectors, are feeling the negative impact of COVID-19 due to the suspension of global supply chains and a shortage of materials.

Many production areas in Vietnam are heavily dependent upon material imports from China, the Republic of Korea, and Japan, so support industries have been unable to escape from the impact.

Pham Van Tai, General Director of the Truong Hai Auto Corporation (THACO), the largest automobile maker in Vietnam, revealed that the development of support industries in mechanical engineering is a strategic direction for localisation in global supply chains, enhancing competitiveness and increasing foreign direct investment.

Meanwhile, Deputy Director of the HCM City support industry development centre Le Nguyen Duy Oanh said there are not many opportunities for businesses in the field due to their limited capacity and low workplace skills. It is also difficult to manufacture diverse products due to a lack of technology.

To address this obstacle, she suggested enterprises push ahead with reforms and change administration mindsets while increasing their competitive edge.

VNA

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