Concerns arising from practical experience

At the workshop to gather feedback on the draft Government Decree on industrial promotion, organized by the Department of Local Industry and Trade, Ministry of Industry and Trade on the afternoon of September 19th, localities contributed many important opinions based on their many years of experience in implementing industrial promotion work.

Mr. Ngo Quang Trung, Director of the Department of Local Industry and Trade, speaks at the workshop. Photo: Thanh Tuan

Many new features, anticipating economic development trends.

Presenting the preliminary contents of the Draft Decree amending and supplementing Government Decree No. 45/2012/ND-CP on industrial promotion (Draft Decree), Ms. Dinh Thi Huyen Linh – Head of the Industrial Promotion Management Department, Department of Local Industry and Trade – informed that, based on feedback from localities, the Draft Decree expands the scope and subjects of application. However, the drafting committee wishes to adhere closely to the orientation of the Central Committee of the Communist Party of Vietnam in Resolution No. 19-NQ/TW, dated June 16, 2022, on agriculture , farmers, and rural areas until 2030, with a vision to 2045.

Overview of the conference. Photo: Thanh Tuan

Accordingly, the draft Decree amends and supplements Clause 2, Article 1. Specifically, the subjects of application are organizations and individuals directly investing in production and providing services for industrial and handicraft production, including: small and medium-sized enterprises, cooperatives, cooperative groups, and business households established and operating in accordance with the law (hereinafter collectively referred to as rural industrial establishments); industrial production establishments applying cleaner production models, sustainable production and consumption; enterprises, cooperatives, and organizations investing in the construction of technical infrastructure for industrial clusters and craft village industrial clusters.

" Artisans and skilled craftspeople in the field of fine arts and crafts are additional beneficiaries of industrial promotion policies due to their special role in preserving and developing traditional crafts, " said Ms. Dinh Thi Huyen Linh.

The draft Decree also amends Clause 1, Article 2 as follows: The national industrial promotion program is a collection of contents and tasks regarding national and local industrial promotion activities in each period (5 years or 10 years) organized, developed, and approved by the Ministry of Industry and Trade in accordance with the medium-term and long-term development plans of the industry, with the goal of encouraging the development of industry and handicrafts nationwide.

Ms. Dinh Thi Huyen Linh - Head of the Industrial Promotion Management Department, Department of Local Industry and Trade. Photo: Thanh Tuan

Add Clauses 5a and 5b to Article 2 as follows: Sustainable production and consumption is the application of solutions based on a product lifecycle approach, promoting linkages in all stages from resource, fuel, and raw material extraction to production, distribution, consumption, and disposal; focusing on repair, maintenance, reuse, and recycling in all stages of the product lifecycle; valuing innovation, creativity, and the application of environmentally friendly technologies, improving equipment and management processes to promote a green economy, circular economy, and sustainable development.

“ This is new content, closely aligned with the Party and State's policy on promoting green and sustainable production. Therefore, this is also very important content ,” added Ms. Dinh Thi Huyen Linh.

Furthermore, digital transformation is a crucial development strategy. Businesses need to digitally transform all their operations; however, this requires significant resources. To support rural industrial enterprises, the drafting committee has added the following content on digital transformation: "Digital transformation in industrial promotion activities is the support for the application of advanced technology products and solutions, including digital technologies, to change traditional management, production, and business models in order to create new opportunities, products, revenue, and value in industrial and handicraft production" to the Draft Decree.

The draft Decree also adds new content, such as: Encouraging and supporting cleaner production, sustainable production and consumption to improve the efficiency of natural resource and raw material use while protecting the environment, promoting the green economy, circular economy and sustainable development.

Additional content should be included to support the development of technical demonstration models; the application of advanced machinery and scientific and technological advancements in industrial and handicraft production; the development of models for cleaner production, sustainable production and consumption; and support for the application of information technology, the development of solutions and software, and digital transformation in production and business activities.

In addition, the Draft Decree amends and supplements several provisions related to industrial clusters; procurement of equipment, working tools, and vehicles for the management of the industrial promotion program and public service units implementing industrial promotion tasks under Articles 7 and 8 of this Decree…; the list of industries eligible for industrial promotion policies; and the development of rural industrial products…

Many practical suggestions were made.

Considering the issuance of supplementary and amended Decree No. 45 at this time is very necessary, Mr. Dang Viet Phuong – Deputy Director of the Phu Tho Department of Industry and Trade – suggested that, from 2025, the Minister of Industry and Trade will be authorized to approve the National Industrial Promotion Program. Therefore, he questioned whether the local Department of Industry and Trade would be authorized to approve the local Industrial Promotion Program. Currently, the local Industrial Promotion Program must be approved by the People's Committee or the People's Council.

“ An important point is, the Ministry of Industry and Trade has approved the National Industrial Promotion Program, but does the Ministry of Finance have the funding, and how will this issue be resolved? ”, the leader of the Phu Tho Department of Industry and Trade wondered.

Mr. Dang Viet Phuong, Deputy Director of the Phu Tho Department of Industry and Trade, believes that the issuance of a supplementary and amended Decree No. 45 at this time is very necessary. Photo: Thanh Tuan

Mr. Dang Viet Phuong also stated that, in the context of deep economic integration, support programs are very easily subject to anti-subsidy regulations. Therefore, the Department of Local Industry and Trade should consult with the Department of Trade Defense to remove potentially incriminating wording from the Draft Decree.

Regarding the organizational structure for implementing industrial promotion tasks, Mr. Nguyen Van Dac – Director of the Son La Department of Industry and Trade – stated that the organization responsible for implementing industrial promotion tasks in Son La has been transferred to the direct control of the Provincial People's Committee. The draft Decree does not include provisions for this entity, and if enacted, Son La will find it very difficult to arrange and implement industrial promotion activities.

Clause 7, Article 1 stipulates policies to support industrial clusters and relocate environmentally polluting facilities to industrial clusters. Decree No. 32/2024/ND-CP on the Management and Development of Industrial Clusters (Decree No. 32) has been issued, which specifies the support contents within industrial clusters and stipulates that the support level shall not exceed 30% of infrastructure investment.

" The question is whether Clause 7, Article 1 in the Draft Decree is included in the provisions of Decree No. 32; this needs clarification ," Mr. Nguyen Van Dac suggested.

Mr. Nguyen Van Dac, Director of the Son La Department of Industry and Trade, offered suggestions on the organizational structure for implementing industrial promotion tasks. Photo: Thanh Tuan.

Mr. Pham Khac Nam, Deputy Director of the Bac Ninh Department of Industry and Trade, also suggested removing the word "rural" from the phrase "rural industrial establishments," because the draft decree does not limit the geographical area. Furthermore, many important technology enterprises, such as supporting industrial enterprises, are located within industrial zones, cities, wards, and districts; maintaining the current classification as "rural industrial establishments" would no longer be appropriate.

Point c, Clause 7, Article 4 stipulates that support is only provided for relocating establishments within craft villages in industrial clusters, but adding the provision for relocating them outside of planned industrial clusters would be more consistent with Decree No. 32.

Mr. Pham Khac Nam, Deputy Director of the Bac Ninh Department of Industry and Trade, suggested removing the word "rural" from the phrase "rural industrial establishments." (Photo: Thanh Tuan)

In his concluding remarks at the workshop, Mr. Ngo Quang Trung stated that the draft of the new Decree is still in its preliminary stage, developed by the drafting unit based on recommendations from various units at the event summarizing 10 years of implementing Decree No. 45. After incorporating feedback from the workshop, the Department will continue to solicit written input from localities.

“ The draft Decree focuses on amending and supplementing major contents that can be implemented immediately, creating a breakthrough for the implementation of industrial promotion work in the coming time. Contents that are not yet necessary will not be amended within the scope of this draft Decree ,” Mr. Ngo Quang Trung emphasized.

Source: https://congthuong.vn/hoi-thao-lay-y-kien-doi-voi-du-thao-nghi-dinh-ve-khuyen-cong-nhung-tran-tro-tu-thuc-tien-347011.html