Thanks to effective market diversification, the export turnover of processing and manufacturing industries increased sharply; the structure of export goods continued to improve…
Assessing the potential of processing and manufacturing industrial products at the seminar “Promoting trade, creating “leverage” for processing and manufacturing industrial products” on the afternoon of October 24 organized by the Industry and Trade Newspaper, Dr. Nguyen Minh Phong said that the processing and manufacturing industry is the “backbone”, foundation and driving force for the growth of the entire industry and the economy, always becoming the leading industry in attracting foreign direct investment. The larger the proportion of the processing and manufacturing industry, the higher its contribution to economic growth. The strong development of the industry leads to the development of technology and improvement of the supply chain towards sustainability, greening, increasing national competitiveness in the international market.
The processing and manufacturing industry is a large industry with many small groups and sub-groups. Of which, there are 8 groups that contribute greatly to the development of the processing and manufacturing industry, including: Chemicals, rubber, plastics; textiles, footwear, food and beverage processing; forest product processing; mechanics; electronics; metal production; construction materials production.
In 2023, the processing and manufacturing industry attracted over 23.5 billion USD of FDI capital, accounting for 64.2% of the total registered FDI capital in Vietnam and increasing by 39.3% compared to 2022. Continuing the recovery momentum from the end of 2023, the added value of the entire industry in the first 9 months of 2024 is estimated to increase by 8.34% over the same period last year.
In particular, the industry is still heavily dependent on imports and low domestic market demand. In addition, most of the large domestic corporations are multinational corporations, domestic enterprises are only at the processing and assembly stages, our country’s low-tech processing and manufacturing industry is only at the processing and assembly stage, not focusing on new industries, high-tech industries. The internal strength of the high-tech processing and manufacturing industry is still weak, lacking integration capacity; Vietnamese industrial enterprises are using outdated technologies compared to the world average, lacking initiative.
“The biggest difficulty in developing the processing and manufacturing industry is that domestic enterprises focus heavily on processing and manufacturing, depend on FDI enterprises, lack resources, lack input materials, and are too dependent on foreign markets, especially imported materials from China and South Korea,” expert Phong emphasized.
According to expert Nguyen Minh Phong, in the coming time, there will be many challenges that the economy in general and industrial production in particular will have to face. Accordingly, in order for industrial products in general and the processing and manufacturing industry in particular to have access to demanding markets, many synchronous, effective and feasible solutions with determination from the Government to ministries and branches are needed.
To support supporting and processing and manufacturing industry enterprises to promote exports and increase capacity in the global supply chain, one of the solutions identified by the Ministry of Industry and Trade and the foreign trade office system in the coming time is to strengthen trade promotion and expand the market for processing and manufacturing industry products, thereby promoting the development of this industry, making an important contribution to the growth of the economy in general. At the same time, the Ministry of Industry and Trade also pointed out that it is necessary to have active support from the Government to create favorable policies and mechanisms for the development of industries, along with the cooperation of the whole industry and, above all, it is necessary to have strong internal strength from the enterprises themselves.