Accelerating industrial production recovery

According to the Ministry of Industry and Trade, the production scale continues to expand with the Index of Industrial Production (IIP), over the past seven months, estimated to increase by 8.8% over the same period in 2021. Of which, the processing and manufacturing industry was the driving force for the whole industry, with an increase of 9.7%.

However, the Vietnam Industry Agency under the Ministry of Industry and Trade said that industrial production still faces certain difficulties, which have been gradually removed but at a slow pace. Some key bottlenecks can be mentioned, such as the weak internal strength of the domestic industry, the heavy dependence on foreign-invested enterprises (FDI), and the low added value of industrial production.

The stages with high added value such as raw materials production, design, and marketing are mainly held by FDI enterprises, while the capacity of domestic enterprises is not high, with limited ability to participate in global value chains. In addition, due to the slow improvement of technology levels in recent times, the readiness of domestic enterprises for industrial revolution 4.0 remains low.

It is necessary to continue to improve the legal framework and remove difficulties in the production and business activities of enterprises and large industrial projects, especially in the context of complicated developments of the COVID-19 pandemic and tense political-economic conflicts in some regions of the world.

The industry and trade sector needs to quickly complete the application for the building of the Law on Industrial Development, report it to the Prime Minister, and then submit it to the National Assembly next year.

The Ministry of Industry and Trade, as a state management agency in the industrial sector, should continue to implement synchronously and effectively the tasks and solutions assigned by the Government, with the focus on promoting the disbursement of public investment, to put key projects into operation, helping to create higher added value for industrial production.

In addition, industrial enterprises are encouraged to actively coordinate with each other, share information and resources, as well as prioritise the use of each other's services to promote domestic production.

Amid the difficulties that industrial enterprises are facing such as rising input costs and labour shortages, sectors and localities need to timely implement support policies according to the Government's Resolution No. 11/NQ-CP. In which, the focus should be given to financial support policies and reduction or extension of taxes and fees, while continuing to hold dialogues with enterprises to promptly solve difficulties and help them get easy access to central and local policies.

(Source: NDO)