Assessment of Hanoi's Supporting Industry Development Policies

The role of supporting industries has been confirmed as being crucial in raising the competitiveness of industrial products, speeding up the industrialization process, and drawing foreign direct investment (FDI) into the industrial sector—along with the entire nation in the renovation process and in the current globalization conditions. Over the past time, Hanoi's supporting industries have demonstrated their independence in generating economic efficiency; the City's robust industry associations and supporting industry products have helped to increase the localization rate and replace imported spare parts. It makes industrial products more competitive across the country.

Nonetheless, Hanoi's industries as a whole and its supporting industries in particular continue to exhibit a number of drawbacks, including a low level of current technology and limited competitiveness compared to imported similar products. Furthermore, a concerning circumstance is that there are no connections between major manufacturers and supporting businesses, or between domestic and foreign-invested businesses, which encourages people to "mind one's own business." The majority of local small-scale businesses are forced to dissolve or give up the game when they are unable to compete with imported goods of the same kind from neighboring nations and cannot control the market. Therefore, supporting industry companies urgently need support policies from the State to invest and develop.

This article will focus on researching supporting industry enterprises in Hanoi. The objective of the paper is to evaluate supporting industry development policies and recommend to Hanoi city the supports that supporting industry businesses want to receive.