Industrial policy in need of rethink: seminar (23/05)
06/08/2010 - 54 Lượt xem
They cited a survey that said over 72% of enterprises wanted to see new ministry-level master plans for their industries and over 62% supported changes in policies to stimulate industry.
Up to 90% complained that authorities needed to revise tax and customs laws, while 74% said policies to more effectively protect intellectual property rights were needed.
"Vietnam has been issuing industrial policies in the form of orders and not based on the needs of enterprises," said Deputy Minister of Industry Bui Xuan Khu.
"The Government is still doing things which should be decided by enterprises and the market place," said Tran Dinh Thien, deputy director of the Viet Nam Economic Institute.
"Instead of support in capital and low interest rates, the Government should help enterprises to develop infrastructure and train workers," Thien said.
One industrial expert at the seminar, Nguyen Quang Thai, said that while Vietnam had an ample and youthful labour force, only 27% of workers have received vocational training.
The lack of skilled labour had lowered the nation's industrial capacity, Thai said.
Out-of-date technology and limited capacity to combat environmental pollution were also challenges, he said.
Hi-tech industries contribute only 25% to Vietnam's industrial production, he noted, compared to 40-60% in many other countries.
Even major industries like textiles and garments, footwear, and shipbuilding were failing to prop up the industrial sector, Thai suggested, noting that the profit margin in the textile and garment industry was a mere 1.8%.
Intel made a much-publisised investment last year of US$1bil in HCM City, but of entire economic process of research and development, production and assembly and distribution, only the last two phases were to be conducted in Vietnam.
Over the past five years, the nation's industrial growth has averaged 15.7% per year, with industry representing about 41.6% of GDP, according to the Ministry of Industry.
Source: Viet Nam News
