Ten years of creating green development supporting industries: [Part 1] Legal foundation

Government resolutions are the basis and premise for building practical, strong and timely policies to promote the development of supporting industries.

Creating a solid foundation for domestic supply chains

Over the past 10 years (2015-2025), Vietnam's policy system on supporting industry development has been continuously improved, creating a solid foundation for forming domestic supply chains, enhancing the competitiveness of Vietnamese enterprises and aiming for green and circular development goals.

The first policy turning point is Decree 111/2015/ND-CP dated November 3, 2015. This is the first document that clearly defines the concept of supporting industry and prioritized supporting industries.

The textile industry faces the need for green transformation. Illustrative photo.

Accordingly, there are 6 industry groups (textiles and garments; footwear, electronics; automobile manufacturing and assembly; mechanical engineering; industrial products supporting high-tech industries) with 55 types of industrial products supporting industries enjoying preferential mechanisms on investment, credit, and human resource training. The Decree paves the way for a series of domestic enterprises to access preferential policies and participate more deeply in the supply chain of FDI corporations.

Next, Resolution 115/NQ-CP in 2020 marked the period of digital transformation and expansion of the supporting industry. The Resolution set out specific goals and many new policies to create a big boost for the supporting industry and the processing and manufacturing industry. In particular, the Resolution stipulates a maximum interest rate differential compensation of 5%/year for enterprises borrowing medium and long-term capital to produce priority supporting industrial products - a rare policy, demonstrating the Government 's strong determination to support enterprises.

To support businesses in reinvesting, innovating technology and improving production capacity. In June 2021, the Government issued Decree 57/2021/ND-CP supplementing corporate income tax incentives for projects manufacturing supporting industrial products that meet specific criteria.

Another important milestone is Decision 71/QD-TTg dated January 17, 2024 amending and supplementing Decision 68/QD-TTg (2017) approving the Supporting Industry Development Program for the period 2016-2025. This Decision expands the scope of supporting industry enterprises enjoying support policies. Increase direct financial resources for business development activities: Training and improving management, technical and quality capacity, Consulting on production improvement, technological innovation, application of international standards (ISO, IATF, ESG...). Support the construction and operation of regional supporting industry technical centers, helping enterprises access experts and new technologies...

In addition, Decision 71 also increases the role of the Ministry of Industry and Trade in coordination and connection; encourages localities to proactively develop their own supporting industries, and allocate local budgets to coordinate implementation with the Ministry of Industry and Trade. The contents of supporting technological innovation, digital transformation, and improving quality management capacity in Decision 71 are considered important stepping stones for businesses to move towards green and circular standards.

Recently, the Government also issued Decree 205/2025/ND-CP (effective from September 1, 2025), amending and supplementing Decree 111, emphasizing the green transformation and digital transformation factors in supporting industry activities. The Decree expands the support objects to enterprises applying energy-saving technology, using recycled materials, reducing CO₂ emissions, and at the same time adding green credit incentives, supporting equipment innovation, training green management human resources and consulting on ESG standard certification.

Workers at Pegatron Company Limited in Hai Phong during a production shift. Photo: Duy Thinh.

Towards green and circular supporting industry

Based on the general direction of the Government, many localities have developed specific action plans. Bac Ninh, Hanoi, Ho Chi Minh City, Dong Nai, Hai Phong... are pioneering localities with programs to develop supporting industries associated with green economy.

In Bac Ninh, the Provincial People's Committee issued a Plan to develop the semiconductor industry and green supporting industries by 2030, focusing on supporting businesses in converting to clean technology and applying renewable energy in the production of electronic components.

Ho Chi Minh City is implementing the Supporting Industry Development Program until 2030, while focusing on building industrial parks following the ecological industrial park model. Enterprises participating in the program are supported with 50% of green conversion consulting costs and 70% of product certification costs to meet international standards.

Da Nang aims to develop a "high-tech supporting industrial cluster" associated with a concentrated information technology park, striving to have at least 100 supporting industrial enterprises achieving ISO 14001 certification on environmental management by 2030.

According to Mr. Nguyen Ngoc Thanh, Deputy Director of the Department of Industry (Ministry of Industry and Trade), policies are shifting strongly from supporting component production to supporting greening capacity and connecting international value chains. This is in line with the global trend when FDI corporations all require suppliers to meet ESG (Environment - Social - Governance) standards.

Source: https://nongnghiepmoitruong.vn/muoi-nam-kien-tao-cong-nghiep-ho-tro-phat-trien-xanh-bai-1nen-tang-phap-ly-d781075.html