Many of Vietnam’s industrial development policies are no longer suitable, said experts at a seminar on the country’s industrial policies during the integration process, organized in Hanoi last week by the Ministry of Industry, local Vietnam News reports.
A recent survey showed that more than 72 per cent of enterprises want to see new ministry-level master plans for their industries, and over 62 per cent support changes in policies to boost industry.
Up to 90 per cent complained that authorities need to revise tax and customs laws, while 74 per cent said policies need to more effectively protect intellectual property rights.
Vietnam has been issuing industrial policies in the form of orders, not based on the needs of enterprises, said Deputy Minister of Industry Bui Xuan Khu.
The government is still doing things which should be left to enterprises and market forces, Tran Dinh Thien, deputy director of Vietnam Economic Institute said, adding that instead of support with capital and low interest rates, the government should assist enterprises in developing infrastructure and training workers.
Industrial expert Nguyen Quang Thai said only 27 per cent of workers have received vocational training, while Vietnam has an ample and youthful workforce. The shortage of skilled labor lowers the country’s industrial capacity, he said.
Out-of-date technologies and the limited capacity to combat environmental pollution are also challenges, Thai added.
Hi-tech industries contribute only 25 per cent to Vietnam’s industrial production, he noted, compared to 40-60 per cent in many other countries.
Even key industries like apparel, footwear, and shipbuilding are failing to prop up the industrial sector, Thai suggested, noting that profit margins in the textile and garment industry are a mere 1.8 per cent.
Over the past five years, Vietnam’s industrial growth averaged 15.7 per cent a year, with industry representing about 41.6 per cent of GDP, according to the Ministry of Industry. (VNS)
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