Policy recommendations to promote sustainable development in the industrial sector

Viet Nam is undergoing a substantial transformation, with industry serving as the foundation for national advancement, as the country aims to become a developed economy with a modern industrial base by 2045.

Production at a Vietnamese enterprise in Amata Industrial Park. Photo: Vuong The

According to experts, in the coming period, for the industry to truly become a driver of economic growth, a comprehensive, well-aligned policy and solution framework is needed to mobilize resources, capitalize on existing strengths, and enhance Vietnamese industry's competitiveness in global markets.

Challenges emerging from local practice

Under the Dong Nai Provincial Master Plan for the 2021–2030 period, with a vision to 2050 approved by the Prime Minister, industry remains a pillar sector, playing a decisive role in economic growth and structural transformation. Currently, the industry–construction sector accounts for around 56 percent of gross regional domestic product (GRDP) and contributes over 60 percent of the province's total state budget revenue. Export turnover is primarily driven by processed and manufactured industrial products. The industrial sector provides stable employment for more than one million workers, making an essential contribution to social security and the stability of urban–industrial communities.

Dong Nai also has a network of major industrial parks and clusters, attracting tens of billions of U.S. dollars in foreign direct investment (FDI) from enterprises and numerous domestic firms. However, from a management standpoint, it is clear that the quality of investment attraction remains uneven, and the linkages between FDI enterprises and domestic businesses remain limited. Localization rates and locally generated added value have yet to match the province’s industrial scale and development potential.

According to the Department of Industry and Trade, despite notable achievements, Dong Nai’s industrial growth model continues to rely heavily on processing and assembly, while the transition toward high-tech industries has been relatively slow. High-quality human resources, particularly skilled technicians and engineers, remain insufficient to meet the requirements of the new development phase. These issues must be addressed for Dong Nai’s industrial sector to advance to a more modern, advanced stage of development.

By 2045, Dong Nai aims to become a modern, green, and innovative industrial hub of the southern region, with a solid position in regional and global value chains; a well-coordinated system of high-tech, environmentally friendly industrial parks; and domestic enterprises capable of deep participation in international supply chains.

This aspiration is also shared by the business community, especially small and medium-sized enterprises. Nguyen Ngoc Tuan, a member of the Executive Committee of the Dong Nai Business Federation, shared that for many years, enterprises have been eager to see obstacles related to production land resolved. In reality, beyond the large-scale, concentrated industrial zones, Dong Nai has tens of thousands of manufacturing enterprises operating outside planned areas. However, resources from both the State and the business community remain insufficient to swiftly address this long-standing bottleneck.

Similarly, according to Vo Hoang Khai, Deputy Director of the Department of Science and Technology, Dong Nai is transforming its development model toward sustainability and higher-quality growth, particularly amid digital transformation and international integration. This shift presents new challenges for governance and business operations, highlighting the urgent need for support from science, technology, and innovation.

Enhancing industrial competitiveness

According to experts, the new development model requires identifying industries with competitive advantages while simultaneously strengthening innovation capacity and the economy’s independence and self-reliance.

According to Associate Professor Dr. Nguyen Thua Loc of the National Economics University, improving industrial capacity and value added should go beyond extensive growth and focus on depth, enabling more effective participation in global value chains. The State should prioritize the development of high-quality human resources, the creation of sustainable jobs, and improvements in workers’ income and welfare. At the same time, efforts are needed to gradually reduce pollution, respond to climate change, and promote green industrial models and the circular economy. A comprehensive assessment framework and clear evaluation criteria are essential for formulating industrial policies for the 2026–2045 period, in line with green transition and globalization trends.

Associate Professor Dr. Phan Thi Bich Nguyet, former Vice President and Chair of the Alumni Community of the University of Economics Ho Chi Minh City, noted that: Dong Nai is a major economic pole of the country and a key center of industrial development. Industry in Dong Nai, Ho Chi Minh City, and the Southeast region plays a leading role in national growth and therefore requires a timely and well-calibrated policy orientation.

Also, according to Associate Professor Dr. Phan Thi Bich Nguyet, issues arising from local practice, along with research conducted by scientists, will contribute to policy recommendations for sustainable national industrial development. At the same time, they will help refine orientations, mechanisms, and solutions to enhance enterprises' innovation capacity in Dong Nai amid digital transformation. This undertaking, in turn, will strengthen governance capacity, competitiveness, and the quality of Viet Nam’s growth in the period ahead.

According to Vo Hoang Khai, Deputy Director of the Department of Science and Technology, the province has identified science and technology, innovation, and digital transformation as breakthrough tasks at the local level through the issuance of development programs and policies, as well as investment planning for innovation infrastructure, high technology, and digital transformation. Clear targets have been set toward 2030 to promote widespread innovation across the business sector. In recent times, Dong Nai has carried out many activities in coordination with experts, scientists, universities, and organizations to study practical conditions, thereby putting forward policy proposals and development orientations.

By Vuong The - Translated by Thu Hien, Minho