Monday, August 21, 2023
HomeWORLDVietnam to consider incentives for supporting industries

Vietnam to consider incentives for supporting industries

Vietnam to consider incentives for supporting industries. Image Source: IANS News

Hanoi, Aug 22 : Vietnam will consider policies to support enterprises operating in supplying parts and materials for sectors, including garment and textile, footwear, electronics, automobile production and assembly and mechanical engineering, in an effort to promote the development of supporting industries, local media reported.

The proposed policies, including an interest rate subsidy of three per cent, are expected to stimulate the enterprises to improve their competitiveness and join the supply chains of multinational corporations, local newspaper Vietnam News reported on Monday, citing the Ministry of Industry and Trade.

The measures will also include corporate income tax incentives, support in investment promotion, human resource training, research and development, technology application, renovation and transfer and credit support, according to the Ministry.

The Ministry of Industry and Trade estimates that about 5,000 enterprises operating in the part-supplying industries are eligible for the support policies, Xinhua news agency reported.

The Ministry would continue to help the government make policies to attract more investments to the supporting industry to increase the local procurement rate, according to Pham Tuan Anh, Deputy Director of the Ministry’s Industry Department.

The local procurement rate for some of Vietnam’s industrial sectors has remained low, at around 5-20 per cent for the automobile manufacturing industry, 5-10 per cent for electronics, 30 per cent for footwear, 30 per cent for garment, and 1-2 per cent for high-tech industry in 2022, according to data by the Vietnam Association for Supporting Industries.

- Advertisment -spot_img

Most Popular