1. General objectives

To produce supporting industrial products for production and export in the country, participating in global value chains. By 2020, supporting industrial products will meet about 45% demand for domestic production, by 2025, supporting industrial products meet 65% of demand for domestic production.

2. Specific objectives

In a period to 2020, with a vision to 2025, focusing on developing supporting industry on three key areas:

2.1. Field of spare parts and tools

To develop metal parts and components, spare parts of plastic - rubber and electrical - electronics parts and components to meet 2020’s target: supplying 35% of demand of components and spare parts for prioritized development industry. By 2025, supplying 55% of domestic demand, boosting production of product fields which serve hi tech industries.

2.2. Sector of supporting industry of garment and textile - footwear

To develop materials and auxiliary materials for textile – footwear industry, meeting 2020’s target, proportion of local suppliers of textile industry reaches 65%, reaching 75-80% of footwear industry.

2.3. Supporting industrial sector for high-tech industry

To develop production of materials, dedicated supporting equipment, software and services for high-tech industry; To develop system of enterprises providing dedicated supporting equipment, supporting technology transfer in the high technology industry. Establish enterprises of maintenance and repairing machinery which hits international standards, developing enterprises of producing equipment, software to serve the industry. Forming system of research and development and production of new materials, especially electronic material.

1. Hosted units:

Ministry of Trade and Industry and the competent State management agencies in localities implement content of the program (hereinafter referred to as hosted unit); received funding to implement program contents and are responsible for settlement of funds according to regulations.

2. Beneficiaries:

Organizations and individuals engaged in development of supporting industry

Programs implement in 02 stages, as follows:

1. In a period from 2016 to 2020

1.1. To connect, support supporting industrial enterprises to become suppliers of products for customers at home and abroad; promoting to attract foreign investment in supporting industrial sector.

- Target:

+ To promote and support expansion of domestic and overseas markets for supporting industry. Creating effective linkages between Vietnam enterprises with multinational corporations, manufacturing and assembly companies at home and abroad;

+ It is expected to support 1.000 Vietnamese enterprises to participate in the program, 130 businesses become direct suppliers for enterprises which manufacture, assemble finished products;

+ To organize annually supporting industry exhibition in the country and abroad. Supporting enterprises to participate in related international exhibitions.

- Key activities:

+ To survey, assess needs, develop standards for products of supporting industry;

+ To organize to assess capacity of enterprise of supporting industry;

+ To consult, assist technique for supporting industrial enterprises;

+ To select and recognize enterprises having qualify and scale which meet international requirements;

+ To organize forums between enterprises of supporting industries in Vietnam with foreign and domestic enterprises;

+ To build and organize programs of promotion and attracting foreign direct investment into supporting industries;

+ To organize promotion seminar on attracting domestic and foreign investment into sector of supporting industry;

+ To propagandize and advertise on mass media about supporting industry activities;

+ To organize exhibition of products of supporting industry;

+ To back promotion, trademark registration of supporting industry products;

+ To back to find, develop markets of consuming products at home and abroad;

+ To consult, support enterprises which invest in supporting industry.

- Budget: VND 115 billion, of which:

+ From the State budget: VND 97.9 billion;

+ From other sources: VND 17.1 billion.

1.2. To support enterprise to apply management system to meet requirements of global production chains in corporate management, production management.

- Objective: it is estimated that 2,000 enterprises will be supported consulting, training systems of corporate and production management to fit international requirements and successfully applied in 1,500 enterprises.

- Key activities:

+ To rate ability and need of adopting standards, management systems in production at enterprises;

+ To construct plans, compile documents on corporate governance, production management to train for enterprises;

+ To organize evaluation of recognizing system of corporate governance and management of production.

- Funding: VND 231.7 billion, out of which:

+ From the state budget: VND 196.9 billion;

+ From other sources: VND 34.8 billion.

1.3. To support to improve quality of training of human resources to meet requirements of manufacturing supporting industrial products.

- Objective: it is expected that 500 enterprise repositories she supported training high-quality human resources; strengthening links between universities, research institutes, educational institutions and enterprises.

- Key activities:

+ To research, assess demand of manpower of industrial supporting enterprises;

+ To develop training programs to improve level of the State management officials; management staff, technical workers of enterprises producing industrial supporting products;

+ To organize training course for the State officials; management staff, technical workers of enterprises of producing supporting industrial products on policy, management, technology and trade.

- Funding: VND 100.9 billion, out of which:

+ From the State budget: VND 85.8 billion;

+ From other sources: VND 15.1 billion.

1.4. To back research and development, application and transfer of technological innovation in testing production of components, spare parts, raw materials and materials.

- Objective: it is expected support around 1,000 enterprises which have functions of research applying successfully, 500 enterprises will be applied, renovated technology and testing production and transfer of technology involved in the program.

- Key activities:

+ To introduce and disseminate some manufacturing technology processes and technical requirements for products of supporting industry;

+ To back construction and publish standards of material, raw materials, components and parts; To set up, publish national standards for raw materials, materials, components and parts in compliance  with international standards;

+ To connect domestic and foreign experts to support directly enterprises of domestic supporting industry;

+ To support application research, pilot production, transfer of technology for enterprises and research institutions in fields of supporting industry;

+ To back supporting industrial enterprises to complete, renovate technology and testing production;

+ To back enterprises to receive technology transfer, buy copyrights, patents, software, hire foreign experts and training human resources;

+ To back projects of studying and testing production of supporting industry products. Supporting a part of research funding for organizations and individuals which have invested by themselves in research, develop and deploy applications into production, having applications results which bring economic efficiency;

+ To back purchase of equipment for laboratory to improve capacity for supporting industry technology development center under the scheme approved by Ministry of Industry and Trade;

+ To support development of criteria for evaluating enterprise on technology and products of supporting industries;

+ International cooperation in training, research and technology transfer.

- Funding: VND 625.4 billion, out of which:

+ From the State budget: VND 531.2 billion.

+ From other sources: VND 94.2 billion.

1.5. To build and operate website of supporting industry

- Objective: to publish information, building databases and publications of supporting industries.

- Key activities:

+ To survey, develop and update database on production capacity of supporting industry enterprises and related policies, focusing on fields of garments, footwear, electronics, manufacturing and assembly automotive, mechanical engineering, supporting industrial products to high-tech industry, key mechanical products, agricultural machinery, shipbuilding;

+ To buy necessary information and data;

+ To provide information on market demand and supply on market of products of supporting industry;

+ To organize annual conference to publish information about production capacity of national supporting industry;

+ To publish publications of supporting industry;

+ To maintain and operate website of supporting industry;

- Budget: VND 74. 6 billion, out of which:

+ From the State budget: VND 74.6 billion;

+ From other sources: 0 VND.

1.6. Implementation funding in a period from 2016 to 2020.

- Funds from economic business capital of the central budget and other funding sources for supporting industrial development activities which is managed and organized to implement by Ministry of Industry and Trade, is expected to be VND 1,147. 6 billion, out of which the State budget is VND 986.4 billion, other sources, are VND 161.2 billion.

- Every year, based on program and recommendations of Ministry of Industry and Trade, the Ministry of Finance allocate funds from the State budget for implementation of activities of development of supporting industry (for the central State budget); Centrally run People's Committees of provinces and cities set up plans, estimate implementation funding for inclusion in draft of the State budget of local government under the provisions of the State budget law and the existing regulations.

- Other source:

+ Funding, contribution sources from organizations and individuals to carry out development activities of supporting industry;

+ Funding sources, contribution source from organizations and individuals at home and abroad and ODA;

+ Legal capital sources as prescribed by law.

To encourage mobilization of local and central extra budgetary funds to deploy contents of the program.

2. In a period from 2021 to 2025

In a period from 2021 to 2025, to continue to perform the duties in the period 2016 - 2020 on the basis of reviewing and evaluate performance results, including:

- To connect, support supporting industry enterprises to become products supplier to customers in domestic and foreign countries; promoting to attract foreign investment in supporting industry sector.

- To back enterprises to apply management system to meet requirements of global production chains in corporate governance, production governance.

- To support training to improve quality of human resources to meet requirements of manufacturing sectors of supporting industry products.

- To back research and development, application, transfer, innovation of technology in test production of parts, tools, raw materials and materials.

- To update information on supporting industry.

- Funding for implementation in a period from 2021 to 2025.

Funding from non-business sources (under the central State budget) and other funding sources for development activities of supporting industry which is managed and organized to implement by Ministry of Industry and Trade will be VND 870.7 billion, out of which, the State budget capital source is VND 750.2 billion, other sources is VND 120.5 billion.

1. Ministry of Trade and Industry

- To develop, improve system of legal normative document and guide to implement development of supporting industry under approved program.

- To set up funding estimation for implementation of the program and incorporate in total estimation of Ministry of Industry and Trade, sending to Ministry of Finance, Ministry of Planning and Investment to consider the layout of estimation, submitting to competent authorities for decision under the State budget law.

- To cooperate with organizations and individuals at home and abroad to attract capital and operational resources for supporting industrial development.

- To lead to guide, inspect and supervise implementation of the program.

2. Ministry of Finance

- To play a key role in arranging economic funding for supporting industrial development activities under the provisions of the budget law.

- To coordinate with Ministry of Industry and Trade to guide, inspect and supervise implementation of the program.

3. Ministry of Planning and Investment

To arrange investment development capital to implement tasks of the program.

4. Provincial People's Committee

Centrally run province and city’s People's Committees set up plans, implementation funding estimation for inclusion in the State budget draft of localities in accordance with the provisions of the State budget Law and current regulations; researching to form centers of supporting industrial development.

Long Giang
Source: moj.gov.vn