AsemconnectVietnam - The goal of double-digit growth places supporting industries in a crucial role, but the biggest bottleneck lies in competitiveness and the ability to participate deeply in the value chain.

Placing supporting industries as the "backbone" of growth
The National Assembly's approval of the Resolution on socio-economic development for the period 2026-2030, with the goal of an average GDP growth of over 10% per year, has opened a new phase of development, with higher demands on quality and sustainability. By 2030, Vietnam aims to become a modern industrialized nation with a high middle income, ranking among the top 30 largest economies in the world.
Hanoi has been assigned the target of GRDP growth of 10-10.5% in 2026 and maintaining a level of 10.5-11% for the entire period. Illustrative image
Hanoi has been assigned a GRDP growth target of 10-10.5% in 2026 and a maintenance rate of 10.5-11% for the entire period. Illustrative image
In that context, Hanoi has been assigned a GRDP growth target of 10-10.5% in 2026 and a maintenance rate of 10.5-11% for the entire period. This is a significant pressure on an already large urban economy, requiring the search for new growth drivers. Supporting industries, therefore, are identified as the "backbone" of the production chain.
According to the Hanoi Supporting Industry Business Association, to realize this goal, a comprehensive set of solutions is needed, ranging from technology and market to institutional frameworks. Hanoi currently has advantages in human resources, industrial park and high-tech park infrastructure, along with new mechanisms from the amended Capital City Law. However, advantages only truly materialize when they are translated into concrete competitive capabilities for businesses.
In reality, the biggest bottleneck for supporting industries is not in production volume or scale, but in the ability to participate deeply in the value chain. The majority of domestic businesses remain stuck in processing and auxiliary production stages with low added value.
At a conference with member businesses on developing a framework of solutions for production and business activities linked to the "double-digit" growth target of the Capital, Mr. Le Huy Thuc, Director of the Precision Mechanics and Technology Transfer Joint Stock Company (PMTT), stated that despite significant investment in technology and factories, participating in the supply chains of large corporations remains very difficult due to high requirements for technical standards, management, and stability.
Even after successfully integrating into the domestic production chain, businesses still face numerous pressures such as low profit margins, fluctuating raw material prices, and cash flow challenges due to extended payment cycles.
Notably, a paradox exists: businesses don't necessarily lack capital, but rather a sufficient and stable supply of orders to effectively utilize their financial resources. Many businesses can access credit at reasonable costs, but cannot expand production due to a lack of demand. This shows that the core bottleneck lies in the market and the ability to connect to the supply chain, rather than in capital.
Relying on incentives is not an option; capacity building is necessary.
Another major challenge comes from increasingly fierce competition in the region. The wave of manufacturing relocation to Vietnam not only brings factories but also entire supply chain ecosystems.
Businesses from China, South Korea, and other countries are strongly involved in the mechanical engineering, components, and equipment sectors, leveraging their scale, technology, and experience. This makes it difficult for domestic businesses to compete in high value-added segments.
Even areas they have mastered, such as auxiliary processing, are gradually becoming saturated, while upgrading to the production of more complex components remains an unresolved problem. According to Mr. Le Quy Kha, Chairman of the Board of Directors of TOMECO Electromechanical Joint Stock Company, in the context of deep integration, businesses cannot rely on "favors" from the market.
The decisive factor remains competitiveness.
Support policies such as tax reductions or procedural reforms are only supplementary. For sustainable cooperation, businesses must create value for their partners, meeting stringent standards regarding quality, cost, and schedule.
Especially in the context of increasingly stringent international standards, particularly those concerning environmental, social, and governance (ESG), businesses are forced to invest long-term in technology and management systems. Adopting platforms like ERP, MES, or obtaining international certifications is no longer an option, but a mandatory requirement for deep integration into global supply chains.
To achieve double-digit growth, the Hanoi Association of Supporting Industries Enterprises proposes a three-stage roadmap: Preparation (assessing internal capabilities, upgrading management), breakthrough (investing in technology, expanding markets), and sustainable development (optimizing the value chain).
Along with that are solutions regarding land development for specialized industrial zones, administrative procedure reform, shortening project approval times, and strengthening connections between domestic businesses and the FDI sector.
However, experts believe that policies are only effective when accompanied by the proactive efforts of businesses. Without improving internal capacity, businesses will find it difficult to take advantage of opportunities from integration and supply chain shifts.
Data from the first quarter of 2026 showed that Hanoi's industrial production index increased by 8.5%, with processing and manufacturing increasing by 8.7%. This increase is positive but still lower than the double-digit target, reflecting significant growth potential but also posing numerous challenges. In this context, supporting industries are expected to become an important driving force. However, to fulfill this role, the business sector needs to overcome limitations in scale, technology, and the ability to participate in value chains.
CK
Source: VITIC/congthuong.vn