MASTER PLAN ON SUPPORTING  INDUSTRY DEVELOPMENT TO 2020, VISION TO 2030

I. Development viewpoints
- To develop supporting industry in accordance with conditions of socio-economic development of the country and development trends of the world in order to meet domestic demand of processing, manufacturing industries, defense industry;
- To develop supporting industry on basis of creating competitive advantage with other countries in the region and the world in order to attract investment, access and meet demand of multi-national corporations, taking part deeper into production networks and global value chains in these areas;
- To develop supporting industry harmoniously, sustainably among industries, focusing on intensive development with priority to create breakthrough for development of key industries, ensuring sustainable and environmentally friendly development;
- To develop supporting industry on basis of mobilizing resources from all economic sectors, especially from foreign invested enterprise and domestic small and medium-sized enterprises system.
II. Development objectives  
1. Overall objective
- To build and develop supporting industry to ensure implementation of objectives: by 2020, Vietnam basically become an industrialized country with high competitiveness of supporting industry products and meeting 45% of  essential demand for domestic production, consumption and exporting 25% of industrial production value. By 2030, supporting industry products meets 70% of demand for domestic production and consumption.
- By 2020, Vietnam has about 1,000 enterprises of supporting industry, having full of capacity to supply for assembling enterprises and multinational groups in territory of Vietnam. By 2030, striving to hit a number of 2,000 enterprises.
- On value of industrial production, by 2020, industrial production value of supporting industry accounts for about 11% of industrial production value of the wholly industry; by 2030, accounting for about 14% of industrial production value of the wholly industry.
2. Specific objectives   
In a period to 2020, vision to 2030, focusing on development of supporting industry under three key areas:
2.1. Field of spare parts and components: developing metal, plastic - rubber and electric – electronics spare parts and components to meet objectives: by 2020, supplying 60% of demand of spare parts and components for fields of industry in territory of Vietnam. Out of which, export value of parts and components products accounts for 30% of total industrial production value in this field. By 2030, providing 80% of domestic demand, promoting production of products for field of high-tech industry.
2.2. Supporting industry of garment and textile, footwear: developing raw materials and auxiliary materials for garment and textile, footwear industry to meet objectives: by 2020, proportion of domestic suppliers for garment and textile industry hit 65%, for footwear industry reaching 75-80% with products of high added value for export production.

2.3. Supporting industry of high-tech industry: developing production of materials, specialized support equipment, software and services for high-tech industry; developing enterprise systems to provide specialized support equipment, supporting technology transfer in high technology industry. Forming enterprise of machinery maintenance and repairing under international standards, taking as a basis to develop enterprise of manufacturing equipment, software to serve the field. Forming systems of researching, developing and producing new materials, especially electronic material.
III. Development orientation
1. General orientation
- To promote attraction of investment in supporting industry from all economic sectors, especially from foreign invested enterprises and small and medium-sized private enterprises;
- To establish network of domestic production with multiple suppliers, including enterprises achieving international standards of production management and quality of products in field of supporting industries;
- To prioritize development of products of supporting industry to meet domestic demand for advanced, environmentally friendly technologies.
2. Specific orientation
2.1. Spare parts and components:
- In a period to 2020, giving priority to development of spare parts and components to serve demands of domestic manufacturing sector, especially mechanic, automotive, agricultural machinery, electronics and high-tech industries;
- To support enterprises of producing spare parts components to take part in regional and international markets. By 2030, Vietnam become an important link in global production network in each above-mentioned priority fields;
- In a period to 2030, focusing on manufacturing products of spare parts having high technology. Raising capacity of research, design and production of domestic firms. Improving production capacity of components and spare parts in the country to meet demand of components and spare parts for manufacturing industry in Vietnam and other countries in the region.
2.2. Supporting industry of garment and textile - footwear:
- To prioritize to attract investment in field of raw materials and auxiliary materials for garment and textile – footwear to ensure creativeness in domestic production and increasing competitiveness of export products;
- Development of supporting industry of garment and textile - footwear bases on maximizing advantages of international trade agreements those Vietnam has joined;
- To promote advantages and potential of each localities, forming of industrial clusters of associating supporting industry of garment and textile - footwear in key economic regions.
2.3. Supporting industry of high-tech industry:
- To prioritize to attract investment in manufacturing fabricated materials such as fabricated steel, plastics, rubber, composites, ceramic for high-tech industry, basic chemicals and specialty chemicals for industry of biotechnology, new materials industry; electronic materials;
- In a period to 2020, developing system of enterprises of maintenance, repair of machinery, services of consulting, supporting technology transfer to enterprises of high technology industry. By 2030, producing a number of products in field of dedicated support machinery and equipment to serve domestic demand;
- To develop strongly human resources for supporting industry of high-tech industries, including human resource for research and development, engineering and production management in relevant fields.
IV. Plan of supporting industry development
1. Spare parts and components
1.1. Metal spare parts and components:
In a period to 2020: raising production capacity of field of basic mechanical engineering such as casting, pressure processing, precision machining, chemicals, surface treatment to meet technical requirements and production management of assembly enterprises, huge groups in Vietnam. Prioritizing to development of products: standard products for manufacturing industries such as bolts, nuts, all kinds of bearings, gears, couplings, standard machine parts; casting molds, plastic injection molding; auto spare parts producing at large-scale and spare parts and components which are replaced regularly; components and assemblies of control systems, drives, actuators, hydraulic systems for machine, movers, agricultural machinery, completed equipment.
+ In a period to 2030: focusing on manufacturing products which requires domestic investment in research, design, production for export. Prioritizing development of products: details 5C of engine (machine, crankshaft, camshaft, connecting rod); high pressure nozzle, multi-fuel engines for motive power, agricultural machinery; components and assemblies of control structure, actuators used in automation equipment, industrial robots, specialized industrial equipment; components meeting high technical standards, using in measurement equipment, analytical, medical equipment.

1.2. Spare parts and components of electricity - electronics:
In a period to 2020: focusing on production of electronic components to serve local assembly demand of industrial electronic products, specialized electronic equipment and for exports. Prioritizing development of products: basic electronic – optical electronic spare parts such as passive components, semiconductors and quartz components; components, assemblies of electricity – electronic for auto; electronic components, electricity circuits for appliance electronics devices, cell phones, telecommunications equipment and other electronic products; electronic – electricity components, spare parts for industrial equipments; types of smart sensors, smart signal processors, controller used in production of machine, industrial machinery, automation equipment.
In a period to 2030: supporting and encouraging transfer of technology of manufacturing electricity – electronic spare parts and components FDI enterprises to domestic firms. Improving capacity of producing electricity – electronic components and spare parts of domestic enterprises to meet demand of electricity – electronic of manufacturing industry of Vietnam and other countries in the region.
To give priority to develop fields: specialized electronics, medical electronics, electrics - electronics spare parts and components for fields of high technology industry; promoting attraction of investment in projects of producing specialized electronic components, project of producing industrial electronic products, especially high-tech products such as medical equipment, equipment of measurement and control.
1.3. Plastic – rubber components and spare parts:
In a period to 2020: developing basic components, spare parts of technical plastic - rubber with high quality to supply for domestic production. Focusing on production of parts and components having high market share, specialized spare parts. Encouraging private enterprises to invest in this sector. Prioritizing development of products: technical plastic components for manufacturing industry, especially auto production industry and electronics industry; technical rubber components for manufacturing industry, especially auto production industry and electronics industry.
+ In a period to 2030: improving domestic enterprises’ capacity of designing and manufacturing small technical plastic - rubber products. To boost production and export of plastic - rubber products those Vietnam has advantages. Investing in manufacturing rubber - plastic spare parts to meet special technical standards such as high quality, abrasion resistance, heat resistance, operating in special environments to supply for manufacturing industry.
2. Supporting industry of garment and textile - footwear
2.1. Supporting industry of garment and textile:
To focus on investment in manufacturing fiber, yarn, fabric and accessories which replace import items, enlisting most of advantages of commitments on international trade agreements, ensuring creativeness in increasing production and consumption of garment products sold in markets of developed countries.
In a period to 2020: attracting investments in fields of natural cotton fibers (cotton, jute, hemp, silk ...), synthetic fibers (PE, Viscose ...), fabrics, chemicals , auxiliaries, dyes and garment accessories (sewing, daisies, labels, mex, zipper, elastic...). Attracting investment and raising production capacity of dyed - completed field on basis of application of modern, non-toxic, environmentally friendly technology.
+ In a period to 2030: focusing on producing high quality and high value-added products. Continuing to attract investment in supporting industry of garment and textile, giving priorities to production of high quality fibers, yarns, fabrics, applying high technology, in accordance with international fashion trends.
2.2. Supporting industry of footwear:
To focus on investment in production of raw materials for production of export leather shoes and the same time, focusing on production of domestic fabrics for manufacturing export footwear.
In a period to 2020: focusing on upgrading and relocating tanning facilities to industrial parks, building wastewater treatment systems to ensure that which are in accordance with law on environmental protection. Applying cleaner production technologies combining with use of non toxic or less toxic chemicals in tanning process. Attracting investment in sector of manufacturing leatherette, leather, all kinds of uppers, soles, inner pads, molds and other materials for footwear.
In a period to 2030: continuing to invest in supporting industry of footwear. Focusing on high quality products and high-tech applications, in accordance with technology and market demand in new period.
3. Supporting industry of high-tech sector
3.1. Field of materials for high-tech industry sector:
To encourage projects of investing in producing high quality fabrication steel, stainless steel to supply for high-tech industry as well as manufacturing industry in the wholly country.
To take development advantage petrochemical industry in Vietnam (with important oil refinery such as: Dung Quat, Nghi Son, Vung Ro), focusing on attracting projects of investing in producing all kinds of primary plastic beads, synthetic rubber materials to serve high-tech industry as well as domestic manufacturing industry in the wholly country, toward export.
On basis of reserves and ability to exploit a number of minerals such as quartz, ferrite, titanium, manganese, advanced ceramic materials, rare land..., calling for investment in field of electronic materials production. Forming enterprises of producing electronic materials to supply for production activities of supporting industry of high technology.
To research, develop production of high purity and high quality chemicals, surface-active, additive substances to serve high technology industry, especially industry of biotechnology and industry of new materials.
3.2. Specialized supporting equipment, software and services for high-tech industry:
To develop domestic capacity of installation, maintenance and repair of machinery and equipment for production of high-technology industry. Focusing on investment in field of manufacturing specialized equipment for researching and manufacturing high-tech products. Developing and producing basic software, industrial software, controllers for automation industry, electronic circuit design. Modernizing and establishing centers of measurement, inspection and quality control under international standards. Forming consultancy centers and services of supporting technology transfer in key economic regions.

V. Key solutions and policies
1. Solutions
1.1. Improving mechanisms and policies for development of supporting industry
To develop and revise specific policies for production of supporting industry, especially policy of creating domestic markets for related industries and incentives for enterprises operating in supporting industry in each period.
To construct plan on supporting industry development in key economic regions to orient development and effective linkages among localities in development of supporting industry.
To develop related mechanisms and policies on specialized industrial parks, supporting industrial parks.
To review and add list of fields of supporting industry in statistical system of national economy, creating favorable conditions for enterprises engaging in production of supporting industry in consistent with international practice .
1.2. Promoting investment in supporting industry development
To encourage and support projects of investing in manufacturing products of supporting industry which have huge market share, application of modern technology, international standard, and high competitiveness.
To develop policies to encourage foreign invested companies, multinational groups which are investing in production in Vietnam to urge supplying companies supply, satellite companies to invest in production in Vietnam.
1.3. Developing total number of and raising capacity of domestic enterprises of supporting industry
To develop enterprises of supporting industry to increase number of manufacturing enterprises.
To set up programs of supporting local firms to become suppliers for multinational companies in various supplying classes.
To develop policies to attract senior foreign experts to directly support to enhance capacity of domestic enterprises of supporting industry.
To build information supporting systems for enterprises of supporting industry: building information portals, databases of supporting industry in Vietnam, providing information of policy, legal, market, technology to boost  connection between enterprises with market.
1.4. Developing science and technology for supporting industry
To develop technical barriers for products of supporting industry in order to protect domestic market and encourage domestic investment and production.
To innovate system of science and technology research to be platform for development of supporting industry. Encouraging research units to expand association, joint venture with production enterprises and international cooperation.
Enterprises of supporting industry will be backed capital source from national fund of science – technology development support for costs of technology transfer, application of management system under international standards, purchase of license, patents, software, hiring foreign experts, training human resources for technological innovation.
To encourage foreign invested enterprises to transfer technology through development of activities of research as well as development of supplying enterprise system in Vietnam.
1.5. Training human resources for supporting industry
To establish programs of training highly-skilled human resources for supporting industry, promoting programs of training skilled workers for supporting industry. Organizing training courses on management, technology, trade... for managers of enterprises of supporting industry.
To encourage enterprises and localities to train on-site human resources, supporting local vocational training units to train skilled technicians. For forms of short -term training, retraining workers, the State have policies to support training costs for enterprises.
To develop scheme of human resource development for supporting industry in key economic regions. Supporting localities to plan human resources for supporting industry. Encouraging foreign invested enterprises to participate in training human resources. Encouraging training units to cooperate with foreign partners in programs of training human resources for development of supporting industry.
For approved supporting industry parks, specialized industrial parks, organizing to choose units of training local labor under selected subjects. Encouraging local employees to participate in training activities and work directly in supporting industry.
1.6. Solution of links, cooperation
To connect foreign invested enterprises with local enterprises through program of introducing domestic demand and supply capacity. Enhancing statistics, building databases on enterprises of manufacturing products of supporting industry to be a basis to introduce, develop links of enterprises.
To strengthen and enhance role of professional associations, government agencies and non-government agencies in order to strengthen links among enterprises of supporting industry.
To organize and enhance professionalism of trade fair of supporting industry, technology fairs, exhibitions and seminars on development of supporting industry.
To support enterprises of supporting industry in operations of searching business partners: organizing fairs and exhibitions on supporting industry, backing to provide information on domestic and foreign markets.
1.7. Other solutions
To strengthen international cooperation on development of supporting industry through signing agreements, multilateral, bilateral cooperation programs on supporting industry, industry and related sectors.
To construct plan and encourage investment in production of materials for production of supporting industry. Enhancing exploration of natural resources for sustainable and effective development of products of supporting industry.
2. Policies
- Project of manufacturing products of supporting industry are subjects to enjoy incentive, encouragement policies under the Prime Minister’s decision No. 12/2011/QD-TTg dated February 24, 2011 on supporting industry, the Prime Minister’s decision No.1483/QD-TTg dated August 26, 2011 on promulgating list of products of supporting industry given priority to develop and related incentive, encouragement policies.
- Small and medium sized-enterprises operating in supporting industry are subjects to enjoy supporting programs the Prime Minister’s decision No. 1556/QD-TTg dated October 17, 2012 on approving scheme of "backing development of small and medium-sized enterprises in supporting industry".
VI. Organizing implementation
1. Ministry of Industry and Trade shall functions as the main implementer, in collaboration with ministries, branches and centrally-run People's Committees of provinces and cities to make public the plan and direct, guide implementation of the plan.
2. Ministry of Planning and Investment, Ministry of Finance, Ministry of Science and Technology, Ministry of Education and Training, Ministry of Labour - Invalids and Social Affairs ... according to their functions in collaboration with Ministry of Trade and Industry to specificate policies and measures mentioned on this plan.
3. Centrally-run People's Committees of provinces and cities, on basis of the approved master plan, have responsibility to coordinate and create favorable conditions for projects, programs of development of supporting industry to perform synchronously and in consistent with plan of industry development and overall plan of socio-economic development of localities;
4. Related professional associations in collaboration with the ministries, agencies to propagandize, guide membership enterprises, especially in field of supporting industry to develop plan of trade and production in accordance with master plan.

 
L.Giang
Source: moj.gov.vn