Boosting momentum for supporting industries

Supporting industries are widely regarded as the foundation for Vietnam to achieve greater manufacturing self-reliance and strengthen its position in global markets. During the 2026–2035 period, the national Supporting Industry Development Program aims to enhance domestic production capacity, increase localization rates, and help enterprises integrate more deeply into global supply chains.

For Dong Nai, one of the largest manufacturing centers in the country, creating and developing an ecosystem is currently extremely urgent to serve the goal of modern industrial development and high economic growth for the entire country.

Establishing a stronger position for supporting industry

On May 25, 2026, the Prime Minister issued Decision No. 929/QD-TTg, approving the Supporting Industry Development Program for the 2026–2035 period. Under the program, supporting industries are identified as a critical pillar for building a sustainable, self-reliant, and modern industrial sector. The initiative seeks to develop domestic capabilities to produce raw materials, components, spare parts, and industrial inputs, thereby reducing dependence on imports, strengthening economic resilience, and contributing to achieving double-digit economic growth in the coming years.

In 2025, Dong Nai recorded 997 supporting industry enterprises, including 713 foreign-invested companies, accounting for 71.5% of the total. Despite growth in the number of enterprises, supporting industry firms represented only 10.3% of the city’s industrial enterprises, indicating significant room for expansion.

Production at a mechanical engineering and manufacturing enterprise in Trang Dai ward.

Dong Nai has set a target of reaching approximately 1,200 supporting industry enterprises by 2030. To achieve this goal, the city plans to implement many synchronous solutions, from supporting businesses in accessing Central supporting industry development policies to promoting international cooperation, expanding consumption markets, and strengthening connections between component manufacturing businesses and end-product businesses.

A key priority is improving enterprises’ internal capabilities through investments in machinery, equipment, technology upgrades, and improvements to production processes. The adoption of advanced technologies, digital transformation initiatives, and smart factory models is expected to help enterprises boost productivity, reduce costs, improve product quality, and better meet the requirements of major corporations.

In parallel, Dong Nai is focusing on creating a favorable business environment for long-term industrial growth. According to Nguyen Kim Long, Member of the Standing Board of the Dong Nai City Party Committee and Standing Vice Chairman of the Dong Nai City People's Committee, creating a favorable environment and supporting enterprise development remain the city’s core priorities. Dong Nai plans to expand industrial land reserves, improve access to production sites, attract high-tech supporting industry projects, and strengthen cooperation between domestic firms and foreign direct investment (FDI) enterprises.

Experts believe that developing supporting industries is not merely about expanding production capacity; it is also a strategic solution for improving the quality of industrial growth. A well-developed supporting industry network would enhance Dong Nai’s competitiveness in attracting investment, building sustainable value chains, and reinforcing its status as one of the country’s leading industrial hubs.

Since 2019, Dong Nai has operated a Supporting Industry Development Coordination Team that regularly conducts surveys, facilitates business-matching activities, and connects local Vietnamese enterprises with foreign-invested companies, particularly Japanese firms, to promote effective cooperation in supporting industries.

Building a comprehensive supporting industry ecosystem

Despite its strong potential, the supporting industry sector continues to face significant challenges. Both Vietnam in general and Dong Nai in particular are expanding their roles in global manufacturing networks, but a significant gap persists between market demand and domestic suppliers' capabilities. The development of supporting industries is measured not only by the number of participating enterprises but also by their ability to provide products that meet international standards and integrate into complex supply chains.

According to Nguyen La Anh Dao, Director of Phuoc Hung Mechanical Production Trading Co., Ltd. in Long Binh Ward, her company is striving to supply supporting products for the electrical and refrigeration industries. Like many domestic enterprises, the company hopes to establish partnerships with major manufacturers, especially FDI corporations, to expand its production capacity. Achieving this goal requires stronger policy support and more effective business connection programs.

Meanwhile, Dr. Huynh Thanh Dien, a lecturer at Nguyen Tat Thanh University, noted that many foreign-invested companies are seeking to increase local procurement to reduce logistics costs, shorten supply chains, and improve operational flexibility. However, domestic suppliers still face limitations in technological capabilities, product quality, compliance with technical standards, and production scale and capacity. As a result, the key challenge is not simply attracting more enterprises into supporting industries, but helping domestic companies become reliable suppliers within global value chains, thereby creating a substantive transformation in the industrial development process.

Dr. Dien emphasized that deeper participation in multinational supply chains would provide enterprises with greater access to advanced technologies, modern management practices, international quality standards, and market experience. This reality also highlights the need for local authorities to facilitate stronger connections and build complete supporting industry ecosystems capable of sustaining long-term industrial development.

By Vuong The – Translated by Mai Nga, Minho