Illustrative image (Source: VNA)Hanoi (VNA) - There are few opportunities for businesses to develop supportindustries in Vietnam amid the global economic crisis caused by COVID-19,according to economists.
Dr Can VanLuc from the Research and Training Institute of the Bank for Investment andDevelopment of Vietnam (BIDV) said the country is in the process of extensiveand intensive global integration and many production chains such as mobilephones, electronic products, textiles and garments, footwear, farm produceprocessing, automobile, and oil refining, which are all key export sectors, arefeeling the negative impact of COVID-19 due to the suspension of global supplychains and a shortage of materials.
Manyproduction areas in Vietnam are heavily dependent upon material imports fromChina, the Republic of Korea, and Japan, so support industries have been unableto escape from the impact.
Pham VanTai, General Director of the Truong Hai Auto Corporation (THACO), the largestautomobile maker in Vietnam, revealed that the development of support industriesin mechanical engineering is a strategic direction for localisation in globalsupply chains, enhancing competitiveness and increasing foreign direct investment.
Meanwhile,Deputy Director of the HCM City support industry development centre Le NguyenDuy Oanh said there are not many opportunities for businesses in the field dueto their limited capacity and low workplace skills. It is also difficult tomanufacture diverse products due to a lack of technology.
To addressthis obstacle, she suggested enterprises push ahead with reforms and changeadministration mindsets while increasing their competitive edge./.
VNA
