He urged businesses to create national brand products that are highly competitive in global value chains, especially as Vietnam integrates into the world economy. Relevant ministries and businesses should increase coordination to boost competitiveness, reform technology and accelerate the restructuring process, he said, adding preferential policies are needed to draw foreign investment, improve domestic production and boost exports in 2016.
The official suggested that State-run companies and economic groups continue working towards the promulgation of an action plan for the restructuring of the industry and trade sector to serve industrialisation, modernisation and sustainable development in 2020 with a vision toward 2030.
He urged Electricity of Vietnam (EVN) to devise a more flexible plan to provide sufficient power for production in the upcoming dry season. The Vietnam National Oil and Gas Group (PetroVietnam) must build solutions to deal with falling oil prices in 2016 and the following years, he added.
According to the ministry’s Department of Planning, the industrial production index in the first quarter of this year climbed by 6.3 percent year-on-year, lower than the previous last year (9.1 percent). This is due to the reduced crude oil output and slow growth in electronics, computers and optical products.
Furthermore, electricity use for industry and construction is lower than last year, posing difficulties for industrial production, said Vu Ba Phu, head of the department. Noting some positive signs in industrial production, he said global oil prices are forecast to fall, which is expected to create an opportunity for businesses to restructure, reduce production costs and improve product quality.
Falling prices in logistics and transport services are also favourable factors in business operation, he added. He advised businesses to prepare human and financial resources, invest in equipment and technology, and develop support industries to reinforce their foothold in traditional export markets and expand to others.
Production and consumption are considered sustainable when they meet the basic needs of the present, establish a better quality of life, reduce the use of natural resources and toxic materials and minimise emissions into the environment.
