Removing the "bottleneck" of land use, supporting industry adds more development momentum

Illustration photo.

Research and development (R&D) projects for supporting industrial products are exempted from or have reduced land rents according to the provisions of the Land Law. This is the content of Decree 205/2025 of the Government on supporting industrial development, which took effect from the beginning of this month. Previously, Resolution 68 of the Politburo and Resolution 198 of the National Assembly on private economic development also had many land policies to support this sector.

For example, small and medium enterprises, supporting industrial enterprises, and high-tech enterprises are supported to reduce at least 30% of land rental fees within the first 5 years from the date of signing the land lease contract with the investor of the industrial park/cluster infrastructure business. These policies, when put into practice, are expected to remove major bottlenecks for the industry, contributing to the formation of large supporting industrial parks and clusters.

With over 20 years of experience in the supporting industry, Kim Long Production and Trading Services Company now has a factory of over 2,000 square meters. To continue expanding and producing more advanced rubber mold products, the company wishes to have easier access to land.

"When newly established, businesses are always very small and tiny. Land resources are non-existent. That is why we really need support from the state in terms of premises," said Mr. Ha Quyet Thang - Director of Kim Long Production and Trade Services Company.

Most Vietnamese enterprises are small and medium-sized. Meanwhile, investing in a few hectares of infrastructure in industrial zones is quite expensive. Therefore, building small factories of 1,000 - 2,000 m2, forming an industrial zone or cluster will support enterprises better.

With more than 6,000 enterprises, Vietnam's supporting industry only meets about 10% of the demand for components and spare parts for domestic production, according to data from the Ministry of Industry and Trade . To further increase this ratio, experts recommend the need for specific policies.

Mr. Pham Dang Tuat - Chairman of the Vietnam Association of Supporting Industries (VASI) said: "Countries going through the supporting industry process all have a complete, adequate and extremely preferential legal ecosystem. For example, in Korea, they build factories for supporting industry enterprises to rent, and when they make a profit, they pay."

One of the focuses of the new policy in Decree 205 is to develop a system of industrial support centers at both regional and local levels. Currently, two regional centers have been established: the Northern Industrial Development Support Center and the Southern Center.

In the coming time, localities will also establish similar centers, operating under the management of the Department of Industry and Trade. These centers have the role of training, consulting on technology transfer, supporting product inspection and testing, thereby improving the capacity of local businesses.

Source: https://vtv.vn/go-nut-that-mat-bang-cong-nghiep-ho-tro-them-dong-luc-phat-trien-100250928104331888.htm