The private sector is expected to help the nation’s industry further develop
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To do this, the Government should drastically equitise SOEs, which are currently holding the nation’s huge and particular advantages and resources, but cannot bring them into full play, Thang said.
He also warned if the slow bottleneck of SOE equitisation remained it would hinder the development of the industry in general, and even causing a great loss of the national resources and hindering the development of the entire economy.
According to economist Luu Bich Ho, though the country’s industry posted high growth in the first quarter of this year it remained dependent significantly on foreign direct investment (FDI) firms.
“Vietnam’s domestic processing industry currently use only some 10 percent of domestic raw materials so that we should promote the processing industry, whose high-quality products can bring high value but do not face fierce competition in the global market,” Ho said.
The government needs to pay special attention to policies on high-tech agricultural development, Ho suggested, adding that it is not only the development of the agricultural production but also of the agricultural and food processing industry. “The two areas will support and develop together," Ho noted.
The soar in manufacturing and processing has been considered a key driver to boost the growth of the entire industrial sector in the first quarter of this year. According to the General Statistics Office, the growth rate of Vietnam’s index of industrial production (IIP) in Q1 2018 hit three year record high of 11.6 percent.
In the first quarter of the year, the processing and manufacturing industry, which accounted for 90 percent of the national industrial value, topped the list, maintaining the highest growth rate of 13.9 percent, contributing 10.5 percentage points to the national IIP’s growth.
Key industries of the processing and manufacturing were electronics, computer, optical and metal production.
The electricity production and distribution reported an IIP growth rate of 10.5 percent in the first three months while the mining industry also saw a growth rate of 0.4 percent thanks to the recovery of coal, metal and gas production, after two consecutive years of IIP reduction.
The Politburo recently also issued Resolution 23-NQ/TW to develop the national industry until 2030, with vision to 2045, aiming to finalize the industrialization and modernization targets and become one of the top three countries in industry in ASEAN.
According to the resolution, Vietnam’s industry will contribute 40 percent to the national GDP by 2030. The proportion of processing and manufacturing industry will be some 30 percent, of which 20 percent will be from the manufacturing industry.
The value of high-tech processing and manufacturing products will reach at least 45 percent while the industrial labor productivity will increase by 7.5 percent on average annually.
The industrial growth rate will average at over 8.5 percent, of which the processing and manufacturing industry will see a rise by 10 percent yearly.
To meet the targets, Vietnam will focus on changing the restructuring of the industry besides issuing policies on business, investment, human resource, science and technology to develop the industry, especially prioritized segments.
