Preferential tax and credit policies
The government should introduce tax incentives to encourage mechanical enterprises to invest in modern technology and machinery. Enterprises involved in the production of high-quality mechanical products with high added value should be exempted from or have their taxes reduced for a certain period of time.
In addition, there should be preferential credit packages for small and medium-sized enterprises in the mechanical industry. Access to preferential capital will help enterprises invest in new technology and improve competitiveness.
Supporting industry development
The mechanical engineering industry needs support from businesses in the supply chain for synchronous development. The government should encourage investment in supporting industries through preferential policies on land, capital and tax. At the same time, it is necessary to build specialized industrial zones for the mechanical engineering industry to concentrate resources and facilitate cooperation between businesses.
Policy to promote research and development (R&D)
Investment in research and development (R&D) is a key factor in enhancing innovation capacity and developing new technologies in the mechanical engineering industry. The government can support this by strengthening research funding policies, providing technical assistance, and encouraging cooperation between mechanical engineering enterprises and research institutes and universities. At the same time, it is necessary to build a financial support mechanism for enterprises to invest in R&D through innovation funds.
Human resource training and development policy
The mechanical engineering industry needs highly skilled human resources to meet production and technological innovation requirements. The government needs to have policies to train and improve the skills of mechanical engineering workers through the development of specialized vocational training programs and promoting cooperation between vocational schools and enterprises. It is also necessary to create opportunities for mechanical engineers and workers to participate in international training courses to learn advanced technology and skills.
Foreign Direct Investment (FDI) Attraction Policy
Vietnam’s mechanical engineering industry needs to continue attracting investment from international corporations to improve technology and production capacity. The government can create special preferential policies to attract foreign investment in the mechanical engineering sector, including simplifying administrative procedures, providing legal support and creating favorable conditions for investors. At the same time, it is necessary to encourage domestic enterprises to form joint ventures and cooperate with foreign partners to transfer technology and develop high-quality products.
Strengthening regional and international connectivity
Promoting linkages between domestic mechanical enterprises and with international partners will help improve competitiveness. The government can support through the establishment of specialized regional industrial parks, to facilitate businesses' easy access to markets, technology and human resources.
Support access to international markets
The mechanical industry needs government support in expanding its export markets. Trade promotion policies, supporting businesses to participate in international fairs, and expanding free trade agreements (FTAs) to reduce trade barriers and tariffs will help Vietnamese mechanical products access international markets more easily. The government also needs to develop specific trade promotion programs for the mechanical industry to increase the export of mechanical products to the global market.
Encouraging digital transformation in the mechanical industry
The application of digital technologies and automation in mechanical manufacturing can help increase productivity, reduce costs and improve product quality. The government can support mechanical enterprises in digital transformation through financial support packages, training and technical advice. It is necessary to develop smart manufacturing models and data-based production management systems to optimize production processes.
Supplementing and perfecting mechanisms and policies to support the mechanical engineering industry is necessary to ensure sustainable development and enhance the competitiveness of this industry. The government, enterprises and relevant agencies need to coordinate closely in implementing policies, thereby helping the Vietnamese mechanical engineering industry gradually approach and rise in the international market.
