Supporting industries need a "boost" in capital and technology to take off.

VTV.vn - Despite being the backbone of the economy, supporting industries are still struggling with capital and technology issues. The new regulations are expected to be a lever, paving the way for supporting businesses to take off.

Capital and technology bottlenecks: Seniority barriers

Supporting industry (SI) is the core foundation for the sustainable development of the national processing and manufacturing industry. However, this sector has not developed commensurate with its potential, creating a great dependence on imported raw materials and components.

According to data from the Ministry of Industry and Trade , in the first 9 months of 2025, Vietnam achieved a record import-export turnover, but more than 94% of the import value was raw materials and components - supporting industry products that can be produced domestically if there is strong investment. The low localization rate in key industries such as electronics, automobiles and high technology clearly reflects the weakness of this foundation.

Many CNHT enterprises are still at an average level, finding it difficult to compete in terms of accuracy...

One of the strategic impacts of Decree 205/2025/ND-CP is to indirectly establish a mechanism for screening high-quality foreign direct investment (FDI) projects. Through regulations on supply chain linkages, the Decree requires that FDI enterprises wishing to enjoy the Government 's support programs must commit to cooperating and creating conditions for Vietnamese supporting industry enterprises to participate.

According to Dr. Mac Quoc Anh, Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises, the alarming situation stems from three long-standing "bottlenecks" that reduce the competitiveness of domestic enterprises. First is the difficulty in capital and access to long-term credit. Investing in supporting industries requires large costs for modern machinery, equipment and international-standard factories, with a payback period of 5-7 years. Most Vietnamese supporting industry enterprises are small and medium-sized enterprises (SMEs) with modest capital, facing major barriers when borrowing long-term capital due to lack of collateral and stable contracts, leading to a vicious cycle: no capital, no technological innovation, no innovation, no FDI contracts, no contracts, no preferential loans.

Besides, according to Mr. Mac Quoc Anh, Vietnamese enterprises face backwardness in technology and quality management. Many supporting industry enterprises are still at an average level, finding it difficult to compete in terms of precision, speed and production standards compared to regional competitors such as Thailand, Malaysia, etc. Issues of quality management according to international standards, industrial design and lean production are still inherent weaknesses, making it difficult for enterprises to overcome technical barriers of FDI corporations.

In addition, businesses also face barriers to participating in the FDI supply chain. Although Vietnam attracts strong FDI capital flows, multinational corporations often prioritize familiar suppliers or other FDI companies. Lack of linkage programs, technical support and systematic capacity assessment keeps Vietnamese businesses out of the highly profitable value chain.

"Our supporting industry enterprises are 'standing on shaky feet'. They need capital and technology, but what they need more is an official, sustainable 'link' to connect with FDI 'giants'. Without a clear linkage mechanism, FDI capital flows will only create superficial growth, while the domestic industrial foundation remains stagnant, making it difficult to ensure national economic security," Mr. Mac Quoc Anh emphasized.

Legal leverage, paving the way for green supply chains

Faced with the above challenges, the Government has just issued Decree 205/2025/ND-CP (effective from September 1, 2025) amending and supplementing regulations on the development of supporting industries. The Decree is considered a "lever" to resolve bottlenecks in mechanisms, capital and markets, creating a structural boost for supporting industries to break through.

Decree 205 focuses on three pillars: Finance - Market - Standardization. Regarding financial support and investment incentives, the Decree continues tax incentives, land rent exemption and reduction, and direct support of up to 70% of costs for research, testing, technology transfer and human resource training. The addition of regulations on environmental protection support orients the development of green and sustainable supporting industries, in line with the national circular economy strategy.

The 70% support level for technology investment is a big motivation.

Decree 205/2025/ND-CP particularly emphasizes the orientation of developing supporting industries towards green and sustainable direction. The Decree supplements regulations on supporting environmental protection (Article 6a), encourages enterprises to invest in friendly technology, minimize waste, and synchronize supporting industries with the national circular economy strategy.

Regarding supply chain linkages, Decree 205 creates a mandatory mechanism: FDI enterprises participating in the Government's support program must cooperate with at least one Vietnamese enterprise. This mechanism creates an official "path", forcing large corporations to open up, helping domestic enterprises access technology, standards and markets.

Commenting on the new regulation, Mr. Do Quang Vinh, director of a precision components manufacturing company in Bac Ninh, said that the 70% support level for technology investment is a great motivation. But the most important thing is that the 'string' linking with FDI is clearly established, helping domestic enterprises learn practical technical standards, improve quality and join the sustainable global supply chain.

Decree 205/2025/ND-CP is expected to be a financial and structural solution, creating new momentum, helping our country's supporting industry overcome inherent limitations, become a solid "backbone", master the supply chain, improve competitiveness and ensure a long-term independent economic position./.

Source: https://vtv.vn/cong-nghiep-ho-tro-can-cu-hich-ve-von-va-cong-nghe-de-cat-canh-100251020214741464.htm