Proposal to arrange stable and long-term national industrial promotion funding source

Localities face difficulties due to lack of funding

According to data from the Department of Innovation, Green Transformation and Industrial Promotion (DEC), Ministry of Industry and Trade , the total approved industrial promotion support budget plan for 2025 of the southern provinces and cities is 55,753 billion VND, down 21.3% compared to 2024. Of which, the allocated local industrial promotion budget is 46,113 billion VND, accounting for 78.7% of the total regional industrial promotion budget. The national industrial promotion budget is 9.64 billion VND, accounting for 21.3% of the total regional budget.

Notably, by the end of September 2025, the southern provinces had only deployed a very small part of the local industrial promotion funding, while no contracts had been signed for the national industrial promotion program. This affected the implementation process and ensured the progress of the local industrial promotion plan.

According to the Department of Planning and Investment, the progress of budget allocation, both at the central and local levels, is still slow and inconsistent, leading to a significant impact on the timeliness of policies. Many localities have not paid due attention to increasing the budget for industrial promotion activities; the survey, appraisal and planning are still formalistic and not close to the actual needs of rural industrial establishments.

Some places have not registered projects for many years, while approved projects are still mainly small-scale, lacking regional reach. In addition, the reorganization of the administrative apparatus, especially after the merger of district and provincial units, has caused confusion in many localities in implementing tasks, affecting the systematic and interconnected nature of industrial promotion work.

Specific proposals

From the above reality, many localities have made specific recommendations to resolve difficulties, in which the common point is the desire to have a stable and long-term funding allocation mechanism, instead of implementing it year by year as at present.

The Department of Industry and Trade of Ca Mau requested the Ministry of Industry and Trade to review, revise and issue new guidance documents in accordance with the actual situation, especially in the context of many localities having just merged administrative units. At the same time, it is necessary to issue a Circular clearly stipulating the records, criteria, scoring process and selection of typical rural industrial products at all levels to ensure consistency and transparency.

Ca Mau also proposed to increase the support level for the application of advanced machinery and equipment from 300 million to 500 million VND/facility, in line with the current actual investment costs. Shortening the appraisal, approval and disbursement process was also proposed to help localities be more proactive in implementation, especially in the initial stage after restructuring the apparatus.

In particular, according to the Department of Industry and Trade of Ca Mau, the Central Government should consider allocating a stable national industrial promotion budget with a 3-5 year roadmap, helping localities develop medium-term plans, instead of being passive as at present.

The Department of Industry and Trade of Can Tho also shares this view, stating that, as the industrial and commercial center of the Mekong Delta, Can Tho needs to be prioritized for more national industrial promotion funding. The city is currently promoting green transformation, energy saving and cleaner production programs in rural industry, but is facing difficulties due to lack of support resources. Can Tho also recommended that the Department of Planning and Investment organize training activities, professional development, and experience sharing to improve the capacity of local industrial promotion staff.

Meanwhile, the Department of Industry and Trade of Tay Ninh proposed to increase the funding for projects related to environmental pollution treatment in industrial clusters, as well as support the construction of technical demonstration models, technology transfer and application of advanced machinery and equipment in production. This is a practical direction to help local rural industrial establishments both innovate technology and meet the requirements of green and sustainable development.

It is argued that, in order for industrial promotion to truly play its role as a “midwife” for rural industry, it is necessary to change the approach from “allocation - disbursement” to “investment - impact”. That is, each industrial promotion project must be considered a “strategic investment” for a potential industry, field or region, not just short-term support for each facility.

Along with arranging a stable and long-term funding source, the Department of Planning and Investment is also recommended to build a system to monitor and evaluate project effectiveness according to quantitative criteria, thereby prioritizing funding allocation to localities with effective models, creating a clear spread.

It can be said that after many years of implementation, the industrial promotion program has contributed significantly to promoting the transformation of the rural economic structure, forming many new industries. However, to enter the stage of in-depth development, a more flexible, stable mechanism and a longer-term vision are needed.

Source: https://daibieunhandan.vn/de-xuat-bo-tri-nguon-kinh-phi-khuyen-cong-quoc-gia-on-dinh-va-dai-han-10394782.html