MoIT needs to promote its role as industry and trade “conductor”: Deputy PM

Pioneer in industry and trade

Beginning his speech at a December-20 conference summarizing operations in 2023 and plans for 2024 of the industry and trade sector, Deputy Prime Minister Tran Hong Ha said industry and trade are an extremely important sector. Uncle Ho said industry and trade are among the national economy’s four major pillars, Ha added.

Representatives of ministries, sectors attend the meeting of the industry and trade sector

The Deputy PM said the industry and trade sector is pioneering in the country’s innovation and development. What it has done in recent years is a revolutionary of innovation and overcoming challenges, and is particularly significant in the context of increasingly fierce global competition and conflicts’ and the pandemic’s negative impacts.

“Although it has to solve internal problems and overcome global trade challenges, the industry and trade sector has obtained encouraging achievements.”

Following the timely and drastic leadership and direction of the Politburo and the Secretariat, headed by General Party Secretary Nguyen Phu Trong, as well as the National Assembly’s initiative and effectiveness in institution improvement, and the Government’s and the Prime Minister’s supervision, determination and creative, timely and efficient performance, the Ministry of Industry and Trade has been proving its important contributions and role.

“We have overcome difficulties thanks to the solidarity of and efforts by the Ministry of Industry and Trade, other ministries, sectors, localities and Vietnamese representative organizations.”

According to the Deputy Prime Minister, Vietnam has fulfilled 10 out of its 15 targets set for 2023, reaching an estimated gross domestic product (GDP) growth rate of 5.5 percent plus, and a foreign trade value of US$683 billion, including a trade surplus of US$26 billion. Food security has been ensured, with rice production output reaching an estimated 28 million tonnes and rice exports amounting to eight million tonnes. The labor market has recovered with more than 220,000 new businesses established. Vietnam welcomed about 13 million foreign visitors in 2023, exceeding the target.

“The country’s success is attributed to the industry and trade sector’s important and comprehensive contributions to legal framework and state management improvement and production and trading development.”

Deputy Prime Minister Tran Hong Ha: The MoIT needs to promote its leading role in the fields of industry and trade

According to the Deputy Prime Minister, the sector has submitted to the National Assembly for promulgation the 2023 law on consumer rights protection with many new regulations.

The Ministry of Industry and Trade has submitted to the Prime Minister four important national plans in the fields of energy resources, including an overall national energy plan, a plan for ensuring electricity supply security and national petroleum and gas reserve and supply infrastructure. These important plans not only serve as orientations, but also a legal basis to mobilize investment resources to develop production and trading activities, not only for the industry and trade sector, but also all other socioeconomic fields.

Industrial production has gone through numerous difficulties. In January 2023, the industrial sector faced a decline of 14.6 percent compared with December 2022 and eight percent compared with January 2022. Although its year-end recovery does not meet expectations, the sector contributed significantly to the growth of the Vietnamese economy. Some projects have shown improvements. For example, Ninh Binh thermoelectric plant and Thai Binh 2 thermoelectric plant after many years operating at a loss have become major power supply sources, contributing to ensuring national energy security.

In 2023, Vietnam recorded a trade surplus for the eighth consecutive year, which enables the country to increase foreign currency reserves, stabilize the foreign exchange rate and macroeconomic indexes. This is the result of great efforts and effective coordination between the industry and trade, agricultural, diplomatic sectors and other sectors as well as the business community. The result is of great significance in the context of slow global trade growth and strong decline in global aggregate demand.

E-commerce keeps growing and adds a bright point to Vietnam’s economic picture in 2023, with its value reaching about US$25 billion, up 25 percent compared with 2022.

Vietnam maintains its top-5 position in the world in terms of e-commerce growth. E-commerce has created a driving force for Vietnam’s economic growth and helped promote digital transformation in businesses. The development of digital platforms in e-commerce has facilitated businesses’ market access efforts, helping them save time.

The industry and trade sector has taken effective measures to promote domestic trade and stimulate consumer demand. The total retail sales of goods and services in 2023 increased by more than nine percent compared with 2022 (the target is 8-9 percent). The domestic supply of goods, especially food and foodstuff, is ensured. The shortage of materials and fuels for production and people’s everyday lives has been surmounted.

In 2023, Vietnam achieved significant results in international economic integration. With free trade agreement (FTA) negotiations with Israel concluded after seven years, Vietnam so far has joined 16 FTAs with more than 60 countries, including major export markets of Vietnamese goods.

The State management of trade remedies to prevent trade frauds related to the origin of goods has been tightened, while measures to combat smuggling and counterfeiting in the domestic market have been strengthened.

“This is one of the conditions enabling Vietnam to integrate into the world economy and to be recognized as a market-oriented developing economy, helping ensure the equality between Vietnam and other members of FTAs,” Deputy Prime Minister Tran Hong Ha emphasized.

On behalf of the Government and the Prime Minister, Deputy Prime Minister Tran Hong Ha praised the efforts and achievements of the industry and trade sector in 2023, especially the efforts to overcome difficulties and resolve internal problems to create new development breakthroughs.

Thinking, viewpoint and policy renovation

However, according to the Deputy Prime Minister, despite the significant results it achieved in 2023, the industry and trade sector should identify its problems which need to be resolved in the coming time.

First of all, in terms of institutions, according to the Deputy Prime Minister, the industry and trade sector needs to innovate thinking, viewpoints, and policies. Otherwise, the industrial sector cannot access high-tech, high quality, green economy or lead a circular economy, make conversion from brown to green energy, cannot take advantage of the integration trend and attract investment.

Second, the sector must take measures to avoid the shortage of raw materials and fuel, including petroleum, gas, electricity, or primary energy sources on the basis of evaluating objective and subjective causes.

Third, regarding industrial production, the Deputy Prime Minister requested a thorough analysis of the growth data of the processing and manufacturing industry of only 3.1 percent because this is the foundation development for industrialization and modernization of other economic sectors and fields.

The Deputy Prime Minister pointed out that industrial development mainly depends on FDI, while the foundation, prioritized, spearhead and supporting industries, green energy industries, and new materials... are still developing slowly.

Fourth, Vietnam’s export still depends heavily on FDI. Most importantly, however, the industry and trade sector must determine the criteria and conditions to pick out industrial fields and FDI sources. The Ministry of Planning and Investment and the MoIT need to strengthen coordination to make right choices, both to take advantage of development opportunities and limit negative impacts.

These are big problems not only for the industry and trade sector, but also for other industries and fields.

Deputy Prime Minister Tran Hong Ha awards the labor order to individuals with outstanding achievements

Promoting leading role

Regarding the development of mechanical manufacturing and other industries, especially new industries such as semiconductors, the Deputy Prime Minister required continued innovations to produce core and spearhead technologies, and the industry and trade sector must make decisions, pilot and gradually form those foundation industries.

According to Deputy Prime Minister Tran Hong Ha, green transformation, digital transformation, and knowledge-based economy are the main currents of the era driven by science, technology and innovation.

The industry and trade sector must continue to research and provide advice on mechanisms, policies, and strategies to form and develop high-tech, fundamental, high value-added industries such as mechanical engineering, semiconductors, digital technology, and renewable energy...

Deputy Prime Minister Tran Hong Ha emphasized and appreciated the important role of representative agencies and trade offices in promoting trade, developing policies, standards and regulations for Vietnam’s export goods; forecasting the potential and requirements of import markets; making effective use of signed FTAs on the basis of ensuring consistency and harmonization with common international standards.

"I think the MoIT must promote its leading role in the fields of industry and trade. The mission of the MoIT and the industry and trade sector is extremely great; the responsibility that the Party and the State, Government, and Prime Minister have assigned to you comrades is very big, but it determines the destiny and the self-reliant development of our country. The Government, Prime Minister, the ministries, sectors and I personally will accompany you so that we can go on together in a methodical and professional manner."

Deputy Prime Minister Tran Hong Ha believes that in 2024, the industry and trade sector with a new mindset and the spirit of solidarity and innovation will continue to uphold its traditions, overcome great difficulties and challeges, become stronger and more steadfast in the development process to successfully complete the mission of working out initiative and important strategies for the country, and for an innovative, integrated, and self-reliant Vietnam’s economy.