On March 22, 2018, the Politburo issued Resolution No. 23-NQ/TW on orientations for building national industrial development policies to 2030, with a vision to 2045; on September 27, 2019, the Politburo continued to issue Resolution No. 52-NQ/TW on a number of guidelines and policies to proactively participate in the Fourth Industrial Revolution.
In these two resolutions, the orientation of the 4.0 Industrial Revolution is integrated and specified in the country's general industrial strategy. The resolution identifies the development of information technology and electronics industries as the mainstay; the development of manufacturing and processing industries as the center; and the development of smart technology as a breakthrough for Vietnam.
Accordingly, the development orientation of priority industries is divided into 2 phases: By 2030: priority is given to information technology, telecommunications, electronics industry; mechanical engineering... Phase 2030 - 2045: new generation of IT and telecommunications industry; digital, automation, new materials, biotechnology.
In particular, the Resolution sets out a number of support policies for priority, high-tech industries such as: credit policies to support investment incentives; tax exemption and reduction policies for a limited period; policies to attract FDI using "high, new, clean, economical" technology with a high proportion of spending on domestic science and technology development, encouraging investment in large data centers, and encouraging the private sector and enterprises to participate in training high-quality industrial human resources.
In the draft Law on Key Industries, the Ministry of Industry and Trade emphasized: Developing key industries - especially supporting industries - is a decisive factor in creating conditions to attract high-quality foreign direct investment (FDI), creating sustainable growth.
The cheap labor factor today is no longer as attractive in attracting foreign investment as it was before. Because the ratio of costs for industries producing raw materials, materials, components and basic industrial products is much higher than labor costs, a country with an advantage in labor but key industries - especially supporting industries - are not developed will make the investment environment less attractive.
Nguyen Van - Vice President of Hanoi Supporting Industry Association said: “In the coming time, economic groups, foreign companies, investors will tend to focus on participating in production and business activities, building factories in areas where they can take advantage of a good supporting industry, meeting the needs of purchasing components, product details or contracts to supply, order production of details, product units to serve production lines, product value chains rather than countries with advantages in cheap labor. Therefore, investors and businesses are looking forward to the early promulgation of the Law on Key Industries. Particularly for supporting industries, the law will be a fulcrum for the industry to develop strongly”.
It is expected that if the Key Industry Law and accompanying policies are implemented, the industry will grow by 7.8 - 8.3%, faster than economic growth (6.5 - 7.0%), thereby expanding employment opportunities and income for workers.
It is expected that each year, the manufacturing and processing industry will create about 250 - 300 thousand new jobs, equivalent to 25 - 30 thousand billion VND in additional income per year for workers.
