of between 15-20 percent over the past decade but its products accounted
for only 0.74 percent of the global market.
According to the Ministry of Planning and Investment, Vietnam ’s
turnover from industrial exports in the first eight months of this year
reached nearly 23 billion USD, an annual rise of 16 percent. However,
the increase is due to high prices rather than greater volume of exports
as several staples such as crude oil and coal have seen a drop in
exports.
In addition to the slow recovery of the
world market after the economic crisis, poor competitiveness from
out-dated production technologies is a major factor behind the poor sale
of Vietnam ’s industrial goods.
Out of the
country’s exports, industrial goods account for almost 60 percent,
mainly products from labour-intensive sectors that depend mostly on
imported materials. The export turnover of hi-tech products is estimated
to make up only 10 percent of the country’s total industrial export
turnover.
Former Trade Minister Truong Dinh Tuyen
said Vietnam ’s industrial sector mainly depends on processing and
assembling while supporting industries are yet to develop.
He expressed concerns that foreign assembly plants may withdraw from
the Vietnamese market as they can’t find local suppliers of spare parts
and rising labour costs are putting them under pressure .
To increase the competitiveness of Vietnamese industrial goods’, the
Ministry of Industry and Trade has recently submitted a plan to the
Government to develop supporting industries.
Under
the plan, supporting industries for five key industries, including
garments, footwear, electronics, auto parts and mechanical engineering
will enjoy preferential policies in terms of investments, developing the
market as well as science and technology and infrastructures.
Projects in these fields will be exempt from corporate income tax for
four years since they have taxable incomes and enjoy a 50-percent tax
reduction in the following nine years./.
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