Continuing solutions to solving difficulties for the mechanical industry

The above content was given by the mechanical enterprises at the Consultation Conference on some Vietnamese mechanical development policies (2021 -2035) held by the Vietnam Mechanical Association on October 9 in Hanoi.

Mr Dao Phan Long - Chairman of Vietnam Mechanical Association spoke at the conference

Debt policy

According to Mr. Dao Phan Long - Chairman of the Vietnam Mechanical Association, which is considered a key industry, is the foundation and driving force supporting other industries to develop, but for many years, mechanical enterprises Vietnam is still struggling to find ways to survive and develop. “ Over the years, a series of limitations and weaknesses from management mechanisms and policies as well as from the enterprises themselves have made the mechanical engineering industry rather fuzzy development, failing to meet the requirements. "- Mr. Dao Phan Long acknowledged.

Proposing policies and solutions for manufacturing supporting industry in the mechanical engineering industry, the representative of leaders of Vietnam Engine and Agricultural Machinery Corporation - (VEAM) emphasized that in order for the mechanical industry to develop, it is necessary to Changing the corporate income tax policy for automobile manufacturing and assembling enterprises, the State should have regulations to encourage FDI enterprises to use domestic supply as regulated the percentage of corporate income tax reduction according to the rate % use domestic supply. For example, automobile production and assembly has a localization rate of 30%, corporate income tax is reduced by 30%.

In addition, there are regulations that give priority to the use of domestically manufactured mechanical products in public investment projects; Amend the policy of import tax on spare parts and materials used for production and assembly of auto spare parts of auto parts manufacturers in the direction of reducing import tax to 0% to 5% for spare parts. accessories used to assemble auto spare parts. “ The State has orientation of preferential policies on corporate income tax, import and export tax for large-scale automobile production and assembly projects that are the output of auto parts and accessories industry. direction to encourage the use of domestic details ”- proposed by VEAM leaders.

Representatives of mechanical enterprises contribute comments and proposals on development policies for the mechanical engineering industry

In addition, the constraints in the bidding mechanism make many Vietnamese mechanical enterprises unable to participate in domestic projects and works and lose at home.

Sharing about this issue, Mr. Nguyen Duong Hieu - Chairman cum General Director of Lidovit Industry and Trade Joint Stock Company, said to participate as a contractor to supply screws for the Metro project in the city. In Ho Chi Minh City, the company must go through a Japanese enterprise. “ Cannot become a direct contractor, required to be a subcontractor of a subcontractor. Accordingly, the biggest difficulty of the mechanical enterprise is the market and the output for the product "- Mr. Nguyen Duong Hieu said.

In addition, the current market development policy is not clear, there are no mandatory localization requirements in projects, projects or enterprises, so it cannot protect the domestic market. .

Focus on policy removal

With the above problems, mechanical enterprises think that in order to develop the mechanical industry, apart from the efforts of enterprises, it is necessary to have the hands of the State through a synchronous and stable policy system. new sustainable development. Accordingly, it is necessary to have a good resolution for Vietnamese mechanics, this is also the expectation of businesses, those working in the foundation industry, the backbone of the economy.

To overcome the shortcomings hindering the development of Vietnam's mechanical engineering, the Vietnam Mechanical Association recommends that in the coming years, Vietnam needs to invest more in infrastructure and increase public investment.

Accordingly, the Government should also have policies to encourage the production of a number of materials for the mechanical engineering industry that we are dependent on abroad.

Vietnam Mechanical Association proposes to have preferential policies both for project owners or investors using domestic mechanical products. Interest rate incentives should comply with the method of subsidizing interest rates for businesses. Proposing a stable difference of 5% / year. The payback period for mechanical investment projects is 1.5 times longer than other projects, namely 10-12 years.

On that basis, it is necessary to give incentives to attract FDI in the current mechanical manufacturing sector, and should apply immediately to domestic mechanical enterprises. Ddoognf time, reconsider the VAT rate regulation for mechanical production instead of the current tax exemption or reduction.

Regarding the supporting industry for mechanical production, the Mechanical Association affirmed that it is necessary to have more regulations on the content of domestic production of over 30% of products to enjoy the incentives of supporting industries. .