What's Happening?
A recent forum organized by the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC) and the Ho Chi Minh City Supporting Industry Association (HASI) highlighted the critical role of supporting industries in Vietnam's industrial growth. The
event brought together businesses, policymakers, and experts to discuss strategies for strengthening manufacturing capacity and integrating more deeply into global supply chains. ITPC Deputy Director Cao Thi Phi Van emphasized that supporting industries are no longer just auxiliary sectors but are foundational for enhancing industrial self-reliance and competitiveness. The forum underscored the need for Vietnam to master the production of components, materials, and technologies to build a strong domestic supplier network. The country's strategic focus includes increasing localization rates and reducing dependence on imported inputs, with a goal to position Vietnam among ASEAN's top three competitive industrial economies by 2030.
Why It's Important?
The development of supporting industries in Vietnam is crucial as global supply chains undergo significant restructuring due to geopolitical tensions and the relocation of high-tech investments. By enhancing its industrial base, Vietnam aims to attract more foreign direct investment (FDI) and strengthen its position in the global market. The country's efforts to increase localization and reduce reliance on imports could lead to greater economic self-reliance and resilience. This shift is expected to benefit small and medium-sized enterprises (SMEs) by improving their production capacity and enabling them to meet international standards. The focus on digital transformation and technological advancements is also likely to boost productivity and competitiveness, positioning Vietnam as a key player in the global supply chain.
What's Next?
Vietnam's government has outlined a Supporting Industry Development Programme for 2026-35, aiming to raise localization rates in key industries to 40-45% by 2030. The program seeks to enhance technological capabilities and deepen participation in global value chains. Ho Chi Minh City, as the country's economic hub, is prioritizing the development of supporting industries through initiatives that promote industry clusters and expand domestic supplier networks. The city is also focusing on digital transformation and regional connectivity to drive growth. Strategic partnerships and memoranda of understanding signed during the forum are expected to facilitate business competitiveness and supply-chain connectivity, further integrating Vietnamese manufacturers into the global market.
Beyond the Headlines
The emphasis on supporting industries reflects a broader trend towards sustainable industrial development. By focusing on localization and reducing import dependency, Vietnam is not only enhancing its economic resilience but also contributing to global sustainability efforts. The integration of digital technologies and artificial intelligence in manufacturing processes is likely to lead to more efficient and environmentally friendly production methods. Additionally, the involvement of local communities in industrial growth initiatives could foster social legitimacy and support for sustainable practices. As Vietnam continues to attract foreign investment, the country may serve as a model for other developing nations seeking to balance industrial growth with sustainability.
