In May 31, 2016 morning , at Daewoo Hanoi hotel, Institute for strategic studies, industrial policy of Ministry of Industry and Trade held a forum “Solutions for capital to develop supporting industry”. There are attendances of many economic experts, representatives of Government Office, Ministries, Branches, Vietinbank, small and medium enterprises and press agencies.

Mr. Nguyen Hoang, Chairman of Hanoi Supporting Industrial Businesses Association (HANSIBA), Chairman and CEO of N&G Corp and members of HANSIBA attended at this forum. 

   
Forum “Solutions for capital to develop supporting industry” in 31 May 2016 morning

 

Mr. Nguyen Hoang, Chairman of Hanoi Supporting Industrial Businesses Association (HANSIBA), Chairman and CEO of N&G Corp and members of HANSIBA attended at this forum. 

In his opening speech, PhD. Nguyen Anh Son emphasized: the development of supporting industries is very important role in the economy, is the direct driving force to create added value, helps to increase the competitiveness of industrial products and promotes the process of national industrialization. Although we aware the important role of SI for the development of the economy in general and industry in particular, but the investment in resources for SI in Vietnam is incommensurate. With the tight state budget resources, very limited investments for supporting industries, enterprises  are very difficult to access the supports from the State. In additional, the supporting industrial enterprises now face many difficulties in capital and technology to be able to invest in equipment, transfer technology.

Mr. Nguyen Hoang, Chairman of HANSIBA, Chairman and CEO of N&G Corp listened to speeches of experts at this forum. 

Mr. Tran Van Quang - Deputy Director of Local Science and Technology Development Department - Ministry of Science and Technology - remarked that Vietnam supporting industries in recent years have many limitations, weaknesses which has been mentioned in numerous reports. In detail: SI in Vietnam is still in its infancy, fragmented and underdeveloped, unable to meet the needs of the manufacturing industry, assembly; manufacturing enterprises supporting products in our country is very limited, outdated technology, weak competitiveness ... This status quo poses two problems:

+ First problem of production technology: Finding the right technology is not difficult problem for enterprises. Domestic or foreign enterprises will be ready to cooperate and transfer to developing profitable technologies. Nowaday, the "monopoly" of technology will not last long.

+ Second problem of capital : overall, there are many funds for supports and incentives for businesses to develop production, but the access to enjoy this incentives are very entangled for enterprises because of procedure documents, themself ...

Mr. Can Van Luc - Banking and Finance Expert - gave solutions to promote the development of supporting industries: The Government needs to complete and update the supporting industries development strategic; establish the Development Fund for SI; early enactment supporting Small and Medium Enterprises Law; more balancing develop financial market;  implement intergration commitment… Financial institutions should simplify loan procedures and the transaction; improve project appraisal staff of SI; offer specialized packages for SI enterprises; strengthen financing according to supplying chain. Enterprises need to cooperate closely with financial institutions; choose appropriate technology to invest; research market; training staff; integration accordingly.

In his presentation,  Vietinbank’s representative said: In order to solve the difficulty of SI in accessing capital, VietinBank  implement preferential credit programs for enterprises especially for SMEs with short-term interest rate from 5%, long-term interest rates from 6.5%. In additional, VietinBank keeps steady interest rates. As the leading bank in the implementation of oriented programs to develop supporting industries of the Government, VietinBank currently offers preferential interest rate of 7% per year and incentives for supporting industrial enterprises. 

Overall, this forum collected effective recommended solutions for authorities and enterprises to meet expectations for all businesses in general and supporting industrial enterprises in particular. This is the core element for the development of supporting industry.