Hanoi (VNA)ꦬ – The shortage ofhigh-quality workforce is a “bottleneck” faced by domestic support industryenterprises, said economists.

Firms operating in the support industry now account for nearly 3.4 percent of all those working in the manufacturing and processing sector.They generate jobs for over 600,000 workers and generating over 900 trillion VND in revenue, or 8percent of the workforce and about 11 percent of the total revenue of the manufacturing and processing industry, the Ministry of Industry and Trade (MIT)reported. Amongspare part manufacturers in Vietnam, many are capable of producing mold ofvarious kinds, motorbike, bicycle and mechanical spare parts, electronic cablelines, plastic and rubber products, and tyres. Some of them are supplying for not only domestic firms but also foreign investors in the country. Their products are also exported worldwide. Overthe past years, the Government along with ministries, agencies and localities haveissued a host of policies and mechanisms to develop the support industry. In Resolution No.115/NQ-CP issued by the Government last year, a number ofdetailed measures were laid out to develop the industry till 2025 and 2030. The MIT also held regular business-to-business meetings toconnect domestic and foreign firms together in the country. At the Vietnam –Japan teleconference on support industries held in June this year, 21 Vietnamese firmshad a chance to link up with 48 Japanese counterparts. AkutsuMichio, member of the Japan Association of International BusinessConsultants, said productivity of the Vietnamese firms in the field remainslow, adding that they must meet demand for regular supply, because when just a part out of thousands of components is missing, thewhole production line will be suspended. 

To improve their supply capability, Vietnamese support enterprises are advised toattract high-quality workforce apart from enhancing output and quality.

Boosting the development of the supportindustry is one of the important solutions for Vietnam to improve the qualityof the economy, ensure sustainable development, avoid the middle incometrap and enhance the country’s capacity of attracting foreign investment.

𒐪 The efforts are also expected to encourage andassist domestic firms to join deeper into the supply chain of foreign-investedcompanies as well as the global supply chain.

Especially in 2025, the domestic support sector is expected to meet 45 percent of the basic demands for domestic production andconsumption with about 1,000 businesses capable to directly supply supportingproducts to assembling companies and multinational groups in the Vietnameseterritories.

With the same purpose, in late 2020, the Ministry of Industry and Tradelaunched the Vietnam Technology Advice and Solutions from Korea Centre (VITASK)and a mold technology centre.

The establishment of these facilities showed the desire to boost the growth ofthe support industry in a strong manner as well as promote cooperation andinvestment to enhance the capacity of Vietnamese firms in engaging deeper intothe global supply chains, meeting the demand for seeking high quality humanresources or promising partners from the Republic of Korea in Vietnam.

Experts held that theIndustry Agency under the Ministry of Industry and Trade needs to expandtechnical support centres across the country, while holding activities toassist industrial production firms as well as relevant industrial serviceproviders.

Such centres will not only focus onintroducing technologies and supporting businesses in accessing advancedtechnologies through international cooperation and the Government’s policiesbut also help them in research and development activities, creating new addedvalues for domestic supporting products.

🐈 So far, Vietnam has engaged in many free tradeagreements, including the Regional Comprehensive Economic Partnership (RCEP).Therefore, the demand for cooperation and partnership among domestic andforeign firms is very high, along with the demand to develop investment andproduction./.