Development of supporting industries towards production and export autonomy in Ho Chi Minh City

Abstract

The purpose of this study is to assess the development of the supporting industries in Ho Chi Minh City through the assessment of the localization rate, technology level, e-commerce application situation, results of production and consumption of products in the list of products of the industry. The data collected from the results of the enterprise survey in 2020 from the Statistics Department of Ho Chi Minh City (2020) of 443 domestic and foreign-invested enterprises operating in Ho Chi Minh City. Through the assessment, the localization rate in four key sectors mostly accounted for more than 50% specific: the food-food sector (82.6%), the rubber pharmaceutical chemistry industry (65.3%), the electronics industry (50.5%) the gas industry (73.6%) and the two traditional sectors, the textile and garment sectors (65.3%) and the leather and related products (57.3%). The proportion of the cost of materials, components and spare parts produced by domestic enterprises is very low only 3.2%, mainly FDI enterprises, state-owned enterprises also only provide a part of raw materials for production (focusing only on food processing industry supplying 20-35% and garments is 20%). From the results of the analysis, the article proposes a number of solutions belonging to the policy of supporting the supporting industries including: solutions on planning and distribution of industrial sectors; supporting investors in infrastructure; develop technology, improve management capacity, capital, human resources and consumption market in order to develop the industrial industry towards production autonomy, serving the production of exports with a high domestic rate.