According to the Ministry of Industry and Trade, the supporting industry is underdeveloped, in fact, Vietnam’s processing and manufacturing industry is very dependent on the supply of imported input materials, components, and components – especially the industrial sectors. key industries such as electronics; textile; leather – shoes – bags; Therefore, when the Covid-19 epidemic broke out in the countries supplying parts and accessories mainly for Vietnam such as China, Korea, Japan… , the domestic industry has encountered many difficulties in securing production inputs. It was not until the above-mentioned countries passed the peak of the epidemic that the supply of imported raw materials for Vietnam’s manufacturing industries was restored.
The assessment of the impact of the Covid-19 epidemic on domestic manufacturing industries has clearly revealed one of the weaknesses of the Vietnamese economy: The internal resources of the manufacturing industry are limited, depending heavily on the domestic industry. foreign supply chains; The underdeveloped supporting industry makes Vietnam unable to be self-sufficient in input factors of production, leading to a state of dependence on imported components and raw materials (but the trade deficit of inputs for the production of goods). production is a situation that has lasted for many years), making the added value of domestic industries very low.
According to the Ministry of Industry and Trade, in recent years, the manufacturing and processing industry has accounted for a high proportion of nearly 40% of the total net sales of production and business of the economy, but only contributed about 14% of GDP. value added is very low compared to other industries. Data from the Organization for Economic Cooperation and Development (OECD) also show that, in the past five years, in the structure of added value in Vietnam’s export products, value added from abroad is still accounts for a large proportion, especially from China and Korea, while the proportion of domestic value-added content is still low and has not yet changed significantly (two key export products of Vietnam are textiles and electronic goods have a domestic value-added ratio of just over 50% and over 377%, respectively.
