South Korea will fund a total of $7 million for a technical training program in supporting industries in Vietnam by 2019 under a cooperative agreement on supporting industries development recently signed in Hanoi.Accordingly, selected Vietnamese experts in the industries will participate in the training program that covers textile and garment, engineering and electronics, and auto spare parts, which are strong points of South Korea.Under the pact, the two sides will also develop joint research programs, transfer technology and enhance human resources exchange, said Vietnamese Deputy Minister of Industry and Trade Le Duong Quang.The cooperation is expected to help Vietnam produce advanced products to add to the global value chain, he noted.Supporting industries play an important role in the development of manufacturing industries, which are regarded as key factors to boost industry development, curb trade deficit and spur economic growth.Supporting industries in Vietnam have been less attractive to foreign investors due to inconsistent policies and the lack of tax incentive policies, said foreign experts.According to Japanese experts, most Vietnamese supporting industrial firms are not qualified to process components with high precision as requested by Japanese firms and other foreign ones.A recent survey conducted in Ho Chi Minh City, Dong Nai and Binh Duong by the Ministry of Planning and Investment showed that just 40.6% of FDI firms will continue their business expansions and the percentage among local firms are 42.3%. (Dau Tu – Investment Feb 20 p8)
