Hanoi (VNA) – Hanoi’s firms operating in the supporting industry are developingstrongly, reflected through the continuous increases in the number of businesses,their scale and quality. However, according to economists, the capital citystill needs specific policies to make the sector grow further.

Hanoi has rolled out many solutions to develop the industry, aiming to increase its developmentindex.

Accordingly, municipal authorities will connect andsupport enterprises in the field to become component suppliers for domestic and foreign enterprises.

The city will attract foreign investment to this field andsupport the enterprises in applying management systems under the requirementsof global production chains.

It will also support them in the research, development,application, transfer and innovation of technology in producing components,spare parts and materials.

In addition, the city will build an information system anddisclose information about the annual development of the supporting industry.

According to experts, the industry play an extremely important role inthe national industrial development, because the supply of materials, spareparts, and semi-finished takes place domestically to ensure the initiative forthe industrial sectors, and avoid dependence on imports and fluctuations of theglobal economy.

The growth of the supporting industry contributes toexploiting resources well, reducing imports, and limiting the export ofresources and semi-processed products. Its development increases the valueadded of industrial products and the ability to attract foreign directinvestment, as well as establishes a system of small and medium enterprises,

Therefore, they expect that in the coming time, theGovernment will submit to the National Assembly for promulgation the Law onIndustrial Development which contains specific policies for the supportingindustry to promote the development of Vietnamese enterprises.

These policies can help them gain access to capital, scienceand technology, international trade, or participate in annual fairs and boosttrade promotion through both online and offline channels.

Dr. Pham Xuan Khanh from the Hanoi Vocational College ofHigh Technology, said currently, the competitiveness of Vietnamese youth whenparticipating in the regional and international labour market is still limited.Vietnam's trained human resources are mainly in the processing andassembly stage of the production and business chain, while the number of highlyqualified employees remains modest, he added.

In order to train the workforce to meet the demand of thelabour market in the new situation, Khanh recommended that Vietnam standardise and develop the quality of teachers and administrators, renewtraining according to the smart school model, improve the quality ofadmissions, and strengthen the connection between training and businesses.

Vietnam's supporting industry, which remainedunderdeveloped and overly reliant on imports, has been identified as a majorweakness for the country, especially in key industries such as electronics,textile, leather and footwear, manufacturing, and automobile.

Hanoi capital city has around 900 enterprises involved insupporting industries, of which nearly 300 have products meeting internationalstandards. Most of them produce components and spare part, productsserving garment-textile and footwear manufacturing, and those serving thehigh-tech industry. A significant number of firms boasts production systems andproducts meeting international standards, which makes them capable of joiningthe global supply chains of multinational conglomerates.

According to the programme on developing the supportingindustry of Hanoi this year, the capital aims to have about 920 enterprisesin the field, including 300 with qualifiedproduction systems and quality products supplying to the global productionnetwork of multinational corporations in Vietnam.

The capital city expects to start construction of all the 43industrial clusters this year, providing thousands of hectares for enterprisesto expand production in the next two years./.