There are few opportunities for businesses to develop support industries in Vietnam amid the global economic crisis caused by COVID-19, according to economists.
Hanoi (VNA) - There are few opportunities for businesses to develop supportindustries in Vietnam amid the global economic crisis caused by COVID-19,according to economists.
Dr Can VanLuc from the Research and Training Institute of the Bank for Investment andDevelopment of Vietnam (BIDV) said the country is in the process of extensiveand intensive global integration and many production chains such as mobilephones, electronic products, textiles and garments, footwear, farm produceprocessing, automobile, and oil refining, which are all key export sectors, arefeeling the negative impact of COVID-19 due to the suspension of global supplychains and a shortage of materials.
Manyproduction areas in Vietnam are heavily dependent upon material imports fromChina, the Republic of Korea, and Japan, so support industries have been unableto escape from the impact.
Pham VanTai, General Director of the Truong Hai Auto Corporation (THACO), the largestautomobile maker in Vietnam, revealed that the development of support industriesin mechanical engineering is a strategic direction for localisation in globalsupply chains, enhancing competitiveness and increasing foreign direct investment.
Meanwhile,Deputy Director of the HCM City support industry development centre Le NguyenDuy Oanh said there are not many opportunities for businesses in the field dueto their limited capacity and low workplace skills. It is also difficult tomanufacture diverse products due to a lack of technology.
To addressthis obstacle, she suggested enterprises push ahead with reforms and changeadministration mindsets while increasing their competitive edge./.
Hanoi will prioritise stimulating support industries for the component manufacturing, hi-tech, and textile-garment and footwear sectors and strengthen industrial supply chains in the northern key economic region.
Vietnam will make an all-out effort to remove difficulties facing Australian enterprises when exporting to Vietnam during the COVID-19 crisis, Minister of Industry and Trade Tran Tuan Anh told Australian Minister for Trade, Tourism and Investment Simon Birmingham during phone talks on the morning of May 8.
The International Labour Organisation (ILO) and the Vietnam Chamber of Commerce and Industry (VCCI)’s HCM City branch on May 14 presented masks and hand sanitiser to companies in the wood and support industries.
Vietnam and Ho Chi Minh City in particular have remained appealing to foreign investors who are continuing to pour capital into the southern economic hub despite the COVID-19 pandemic.
Prime Minister Nguyen Xuan Phuc has signed a resolution to promote the development of support industries with the aim of having 2,000 enterprises capable of directly supplying parts for multinational corporations in ten years.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Illustrative image (Source: VNA) 
