Supportive industrial policies are benefiting FDI enterprises

Supportive industrial policies are benefiting FDI enterprises 6

At the seminar `Steps forward in supporting industries` on September 26, Ms. Nguyen Thi Xuan Thuy РDeputy Director of the Center for Supporting the Development of Supporting Industries (Department of Industry, Ministry of Industry and Trade) said, 4 years

Commenting on this number, Mr. Dao Phan Long – Chairman of the Vietnam Mechanical Association said that invisibly, the State’s support policy causes foreign businesses to benefit.

Explaining further, Ms. Thuy said that domestic enterprises are mostly small and medium-sized, so they lack professionalism in completing documents and meeting the criteria and conditions for approval.

`FDI enterprises have a legal department, so their application for confirmation to enjoy incentives is very complete, while domestic enterprises do not have one, their documents are quite sketchy so they do not meet the given criteria. Because

Unable to take advantage of available support policies, domestic supporting industry enterprises still lack capital, so they cannot grow big.

`We couldn’t get a loan, even though we presented the contract and the partner’s order to the bank, while the bank only asked for a mortgage on the property. We mortgaged everything that could be mortgaged.

Workers assemble buses at Truong Hai Automobile Factory.

As someone who has `accompanied` businesses for many years, Ms. Truong Thi Chi Binh – Vice President of the Vietnam Association of Supporting Industries (VACI) admitted that policies to support businesses financially are very difficult.

According to Ms. Binh, if you want to borrow capital from a business, you must have a mortgage, while in countries like Japan and South Korea, you only need to provide a supply contract to Toyota or Samsung to receive disbursement.

`The characteristic of the supporting industry is that it must have good investment, but we don’t have it. The association has also tried calling for investment funds, but they said the profits are low so they are not interested, while they are willing to

Mr. Dao Phan Long expressed regret that over the past 20 years this industry has lost the domestic market to large foreign players.

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