News

Vietnam’s industrial development over the period 2011- 2014 are facing many difficulties and challenges from the international environment, as well as domestically. Industry growth has shown signs of recovery in 2015 and predicted higher growth in the period 2016-2020, especially in the context of Vietnam to join the Free Trade Agreement (FTA) generations new Agreement trans-Pacific Partnership (TPP). Having to take advantage of this opportunity or not, depends on the awareness and preparedness of enterprises (companies).

Motivation industrial growth

According to Prof. Dr. Nguyen Ngoc Son, Posts and Telecommunications Institute of Technology said the 2011- 2014 period is the period that Vietnam’s industrial difficulties and challenges from the international context and the domestic interior. However, growth in industrial output value maintained a steady pace in the period 2011-2014 averaged 8.3% / year, it is expected that by 2015 the average growth of 5 years is 8.07% / year . Within the industry, industry distribution of electricity, gas, hot water, steam and air conditioning rose highest, estimated an average increase of 9.7% / year; followed by the sector of water supply, waste management and waste water increased by an average 9.1% / year; processing industry, manufacturing is estimated to increase by 8.1% / year; mining the lowest increase, estimated to increase by 1.9% / year.

In terms of industry structure, the proportion of industry – construction in the GDP increased gradually, the structure has gradually been shifting right with orientation, gradually increasing the processing industry, manufacturing and mining sectors declining, specifically: mining sector fell from 8.5% in 2010 to 8% in 2015; processing industry increased from 86.5% in 2010 to 86.6% around 2015. Overall, industrial production continued to maintain high growth momentum; manufacturing and distribution of electricity and the processing industry, manufacturing continues to make great contributions to the growth of the whole industry.

However, of concern is the sign of recovery of industrial production is still limited, especially in the processing industry of agricultural products. Still do not have a mutation in the development of supporting industries, which makes the growth model of Vietnam continues to be a model of growth and growth in width based on outsourcing. In addition, participation in the global value chain of the manufacturing industry, such as: Textile, leather, electronics have not achieved the results as expected.

The selection of FTA partners of Vietnam has been to extend the benefits of export markets for Vietnam goods. Among this FTA, could strengthen its position as important as it is considered TPP agreement and form of the 21st century with the participation of the United States. Thus, this FTA is the driving force of industrial growth through deeper involvement in the value chain and global production networks, by will form a free trade area represents about 40% of global health, and is expected to complement the world’s GDP by nearly 300 billion dollars / year, of which Vietnam increased by 33.5 billion dollars in 2025. in the field of industrial support, as prescribed by TPP or goods Vietnam exported want to use materials produced domestically or imported from other TPP member countries. This is the opportunity to “gold” promote industrial enterprises development support. However, reality shows, it is difficult to compete with foreign enterprises with strong financial strength, experience, high level of management, so immediate, instead of competition, Vietnam enterprises have possible links and cooperation with foreign companies in the field of industrial support, thereby gradually participate in the global supply chain. In particular, for the textile industry, with a large enough scale exports, Vietnam will have the conditions to attract investment in the field of weaving, dyeing and manufacturing materials. In fact, the project appeared large and very large investments to prepare for the TPP. This is the positive side of the rules of origin “yarn forward”, helped Vietnam increase domestic value added to exported textiles and garment industry to help advance sustainable development of potential competitors. This is also the pressure to promote domestic enterprises to actively improve competitiveness.