Vinh Phuc adopts solutions to promote the development of supporting industries

The northern province of Vinh Phuc has set the goal of having 70 enterprises eligible to become first-tier and second-tier suppliers for manufacturers of automobile, motorcycle, electronic products and partially supply for large enterprises or corporations or exports by 2030.

This is a part of a plan issued by the People’s Committee of Vinh Phuc Province on the implementation of the Government Resolution on solutions to promote the development of supporting industries in Vietnam.

The development of supporting industries is considered as one of the important solutions to attract investment, helping the province soon fulfill its goal of becoming a major centre of the automobile and motorcycle manufacturing industry.

To realise the above goals, the provincial People's Committee worked out solutions such as carrying out synchronously projects to boost the development of supporting industries, continuing administrative reform to create favourable business environment for enterprises, and effective operation of the provincial Industrial development supporting the technical centre.

Regarding taxes, finance and credit, the province planned to offer preferential interest rates for corporate income tax with investment projects on products on the list of supporting industrial products prioritised for development. Incentive policies on interest rates for enterprises when borrowing short-term capital at credit institutions and compensate for the difference in interest rates for medium and long-term loans would also be included.

Businesses in the province were encouraged to expand cooperation with domestic and foreign partners to participate in the global value chain. They were also advised to step up promotion to attract investment from large corporations.

More support would be given to enterprises that engaged in innovation, research development, and technology transfer.

It was necessary to ensure the scale of the domestic market, promote the foreign market and take advantage of the FTAs that Vietnam has signed with other partners, according to provincial authorities.