Supporting industries have a breakthrough opportunity thanks to the new policy

The industrial support development program for the period 2026-2035 opens a major policy path, but businesses wanting to break through must overcome the pressures of capital, technology, and supply chains.

The policy has paved the way for supporting industries.

Deputy Prime Minister Pham Gia Tuc recently signed Decision No. 929/QD-TTg approving the Program for the Development of Supporting Industries for the period 2026-2035, aiming to form a self-reliant and modern supporting industry that participates more deeply in global value chains.

The overarching message of the program is that supporting industries are no longer "satellites" but have become the foundation of a sustainable national industry, capable of self-sufficiency in raw materials, components, and input equipment.

According to the new orientation, the development of supporting industries must be linked to technological innovation, digital transformation, increasing the localization rate, and participating in global supply chains. Businesses are identified as the center of this process, while the State plays a facilitating role through improving institutions, supporting science , technology, resources, and markets.

The program also sets very specific targets. By 2030, the electronics industry is expected to achieve a localization rate of 25-30%, mechanical engineering 40%, automobiles 22-30%, textiles 60%, and footwear 60-65%. By 2035, many industries are expected to raise their localization rates to 40-70%.

Notably, the program not only emphasizes technological challenges but also aims to develop nuclear-related supporting industrial enterprises capable of becoming Tier 1 and Tier 2 suppliers for domestic and international corporations.

To join the FDI chain, one must be competitive and able to withstand pressure.

The policy has paved the way; the remaining challenge lies in the practical capacity and resilience of Vietnamese businesses. At the conference "Developing a framework of solutions for implementing production and business activities in the supporting industries sector, linked to the goal of double-digit growth in Hanoi, " Mr. Nguyen Thanh Hai, Chairman and CEO of EMIN Viet Nam Joint Stock Company, shared that participating in FDI supply chains is not just a production challenge but also a fierce competition in finance and management.

According to Mr. Hai, the majority of revenue for many Vietnamese supporting industries currently comes from Chinese and Taiwanese (China) customers, while accessing Japanese or Korean businesses is much more difficult. "To participate in FDI supply chains, two crucial conditions must be met: competitive pricing and financial resilience," Mr. Hai said.

In reality, payment terms for large corporations can extend from six months to a year, putting significant pressure on cash flow. Meanwhile, FDI corporations often have established supplier networks and find it difficult to expand with new partners. Many Vietnamese businesses have to take a roundabout route, going through intermediary suppliers to gradually join the supply chain. However, even with opportunities, maintaining quality standards, financial stability, and management remains a huge challenge.

According to a representative from EMIN Viet Nam, this is a "game" that requires businesses not only to have production capacity but also to have the courage and ability to accept long-term investments. A noteworthy fact is that many domestic businesses, despite having a certain scale, are reluctant to expand too quickly due to concerns about financial risks, management, and legal pressure. "Businesses need to dare to invest and expand production, but in a transparent and stable environment so that economic risks do not translate into legal risks," Mr. Hai shared.

From a management perspective, businesses also recognize the urgent need to standardize operating systems, develop human resources, and apply technology. Accordingly, instead of restructuring over long periods, businesses must continuously adjust weekly and monthly to quickly adapt to market fluctuations.

From an investment promotion perspective, Mr. Tran Quang Hoi, founder of EcoBuy Company, believes that foreign businesses are acting very quickly to take advantage of opportunities in Viet Nam. According to Mr. Hoi, many Indian businesses, after only a few discussions, immediately came to Viet Nam to survey and implement investments. A notable feature is their proactiveness, flexibility, and high speed of decision-making. “Some businesses leased 5,000-6,000 m² of factory space, installed equipment, and completed implementation in just about two months,” Mr. Hoi stated.

Meanwhile, many Vietnamese businesses remain cautious, slow to make decisions, and lack proactiveness in market connections. According to Mr. Hoi, the demand for suppliers in Viet Nam is currently very high, especially in fields such as MRO (maintenance, repair, and operation), electric vehicles, and supporting industries for the electronics sector. However, competition is also becoming increasingly fierce as Chinese businesses are aggressively expanding their manufacturing ecosystem in Viet Nam. This places an urgent demand on domestic businesses to proactively improve their capabilities, standardize management, and participate more deeply in investment connection activities.

From the perspective of the association, in an interview with a reporter from the Industry and Trade Newspaper, Mr. Nguyen Hoang, Chairman of the Hanoi City Association of Supporting Industries Enterprises, stated that current opportunities must be viewed in terms of actual capabilities, not just general expectations.

According to Mr. Nguyen Hoang, with an economy of approximately $500 billion and a population of over 100 million, Viet Nam still has much room for development, but the actual value created by domestic businesses is still not commensurate with this, as the FDI sector accounts for a large proportion. "The core issue is to transform opportunities into tangible capabilities of domestic businesses," Mr. Nguyen Hoang emphasized.

Accordingly, for supporting industries to develop, they must simultaneously address many challenges: capital, infrastructure, labor, technology, and administrative procedure reform. In particular, the digitalization of production is considered a mandatory element if businesses want to participate deeply in the global supply chain. Businesses must be transparent throughout their production processes, have real-time data access, and meet increasingly stringent international standards.

Based on this reality, many argue that it is time for Viet Nam's supporting industries to move beyond mere processing or supplying individual goods and services, and instead focus on building a production ecosystem, forming clusters of linkages between domestic and FDI enterprises. Once the policy "main road" is open, the decisive factor for success will lie in the speed of enterprise movement and the ability to transform opportunities into genuine competitiveness.

Source: Vietnam.vn