Vietnam Industry White paper 2019

1. VIETNAM INDUSTRY WHITE PAPER 2019
Manufacturing and Subsector Competitiveness
22 October 2019
MINISTRY OF INDUSTRY AND TRADE
OF THE SOCIALIST REPUBLIC OF VIETNAM

2. 1. Introduction
 UNIDO – MOIT capacity building project
 White paper on Vietnam Industry 2019

3. ▶Project “Support to the Government of Viet Nam in the formulation of Sub-Sector
Industrial Strategy and of the related Implementation Policy through Institutional
Capacity Building”
▶Objectives: to contribute to the upgrading of industrial competitiveness in terms of
further elaborating its strategy at the subsector level as well as fostering the
implementation of a set of industrial policies to promote priority sectors and
value chains
▷ consolidation of industrial policymaking capacity in Viet Nam to eliminate the institutional gaps at MoIT and
the bottlenecks in the policy framework;
▷ capacity-building in industrial intelligence focusing on sector competitiveness and value chain analysis;
▷ sharing industrial development experiences and policies from industrialized economies such as the ROK;
▷ support in the design of evidence-based subsector industrial strategies and in defining industrial policies and the
necessary policy instruments to successfully implement the strategies
UNIDO-MOIT capacity building project
1. Introduction

4. ▶WS1 – 16-19 Jan 2018: Enhancing the Quality of Industrial Policies (EQuIP) Training
▶WS2 – 05-09 Jun 2018: Capacity Development for Industry 4.0 in Viet Nam
▶WS3 – 13-17 Aug 2018: EQuIP – Sector Competitiveness Analysis and Selection
▶WS4 – 12-16 Nov 2018: White Paper on Vietnam’s New Industrial Development
Strategy
▶WS5 – 25-28 Mar 2019: Workshop to Support the Drafting of the White Paper for
Vietnam’s New Industry Policy
▶WS6 – 25-26 Jun 2019: Training Workshop to Develop a Monitoring and Evaluation
(M&E) System for Vietnam’s Manufacturing Sector
4
UNIDO-MOIT capacity building project
1. Introduction

5. This paper contributes to the implementation of Resolution No. 23-NQ/TW by:
▷ Analysing and evaluating the current status of manufacturing in Viet Nam in the
period 2006 – 2016 at the macro-level using international methodologies and
evaluating their performance by benchmarking them with relevant comparators (mostly
ASEAN members);
▷ Identifying key bottlenecks and issues that need to be addressed at both the macro
and sectoral levels;
▷ Making recommendations and providing feasible solutions to achieve the objectives
established in government policy documents.
White paper on Vietnam Industry 2019
1. Introduction

6. 2. Performance of
Manufacturing in Vietnam
 Methodology & CIP Index
 Country’s competitiveness
 Manufacturing value added (MVA)
 Manufactured export
 Employment in manufacturing
 Cross-sectoral benchmark

7. 7
Methodology & CIP Index
2. Performance of
Manufacturing in
Vietnam
COMPETITIVE INDUSTRIAL PERFORMANCE INDEX 2018
• CIP index is developed from three dimensions and
8 indicators
• Viet Nam’s CIP ranking has been improved
significantly in the period 2006-2016, ranking 6th a
mong 10 ASEAN members
• Viet Nam’s position is still far behind some
comparators
• Viet Nam’s improvement is mainly derived from
export aspects (MXpc, MXqual, ImWMT), not from
value added (MVApc, INDint, ImWMVA)
Source: UNIDO (2018)

8. 8
Country Readiness for Future of Production
Qatar
UAE
SA
VietNam
Turkey
Indonesia
Japan
Korea
Singapore USA
UK
Germany
France
China Drivers of production shows potential to adopt the 4IR consist of
Demand factor, Technology & Innovation, Institutional Framework,
Global Trade & Investment, Human Capital, Sustainable Resources;
while Structure of production shows the existing factors on
the ability for 4IR – consists of scale and complexity of production
Industry with Comparative Advantages : Competitiveness between Countries
2. Performance of
Manufacturing in
Vietnam
Source: WEF (2018)

9. Industry with Comparative Advantages : Competitiveness between Countries
2. Performance of
Manufacturing in
Vietnam
Source: WEF (2018)

10. Global manufacturing competitiveness index
10
Industry with Comparative Advantages : Competitiveness between Countries
2. Performance of
Manufacturing in
Vietnam
The rise of the “Mighty Five”:
• The five Asia Pacific nations of Malaysia, In
dia, Thailand, Indonesia, and Vietnam
(MITI-V aka the “Mighty Five”) are
expected to pierce the top 15 nations on
manufacturing competitiveness over the
next five years.
• These nations could represent a “New
China” in terms of low cost labor, agile ma
nufacturing capabilities, favorable
demographic profiles, market and
economic growth
Top drivers of manufacturing
competitiveness:
• Talent
• Cost competitiveness
• Productivity
• Supplier network
In an era of sluggish economic growth,
containing costs and increasing productivity
to boost profits remains critical for
manufacturers, alongside building a strong
network and ecosystem of suppliers.
Source: Deloitte (2016)

11. 11
Manufacturing value added (MVA)
2. Performance of
Manufacturing in
Vietnam
0.0
10.0
20.0
30.0
40.0
CHN THA KOR MYS IDN PHL SGP IND VNM
MVA share in GDP (%)
2011 2016
• MVA and MVA per capita of Viet Nam are the lowest
among ASEAN 6, but grow at the highest rates in last
five years
• Share of MVA in GDP is still the lowest among
comparators, and need to be double by 2025 as
targeted
Source: UNIDO Indstat

12. 12
Manufacturing value added (MVA)
2. Performance of
Manufacturing in
Vietnam
• Trends in MVA structure change in Viet Nam: Did not shift toward more industrialized; Did not move toward industrial base sectors; FDI-driven;
India Indonesia Republic of Korea Singapore Viet Nam
2011 2015 2011 2015 2011 2015 2011 2016 2011 2016
10Food 8.1% 7.9% -0.2% 15.6% 18.5% 2.9% 4.4% 5.4% 1.0% 3.3% 4.1% 0.8% 16.0% 13.1% -2.9%
11Drinking 2.0% 2.1% 0.1% 0.7% 1.4% 0.7% 1.4% 1.8% 0.4% 1.8% 1.6% -0.2% 6.6% 4.1% -2.5%
12Tobacco 0.8% 1.1% 0.3% 4.7% 6.9% 2.2% 0.3% 0.3% 0.1% 0.0% 0.0% 0.0% 1.3% 0.4% -0.9%
13Textile 6.3% 7.1% 0.8% 6.6% 4.6% -2.0% 2.3% 2.1% -0.2% 0.0% 0.0% 0.0% 3.9% 3.7% -0.1%
14Garment 1.3% 1.8% 0.5% 2.2% 3.2% 1.0% 1.3% 1.1% -0.2% 0.2% 0.1% -0.1% 3.5% 4.8% 1.3%
15L&F 0.6% 0.8% 0.2% 1.7% 3.2% 1.5% 0.4% 0.4% 0.0% 0.1% 0.1% 0.0% 3.9% 5.2% 1.3%
16Wood 0.4% 0.5% 0.1% 2.1% 2.1% 0.0% 0.4% 0.5% 0.1% 0.2% 0.3% 0.1% 2.1% 2.0% -0.1%
17Paper 1.7% 1.8% 0.2% 8.3% 2.9% -5.4% 1.9% 2.2% 0.3% 0.6% 0.5% -0.1% 3.3% 2.7% -0.6%
18Printing 1.3% 1.4% 0.1% 1.2% 0.7% -0.5% 0.6% 0.6% 0.0% 3.1% 2.0% -1.1% 1.3% 1.3% 0.0%
19Petroleum 4.8% 9.3% 4.5% 0.0% 0.2% 0.2% 2.9% 2.4% -0.5% 0.3% 2.1% 1.7% 2.7% 1.5% -1.2%
20Chemicals 14.9% 15.4% 0.5% 14.6% 11.6% -3.0% 12.6% 12.0% -0.6% 12.0% 25.2% 13.2% 6.4% 5.9% -0.6%
21Pharmaceutical 4.8% 5.2% 0.5% 2.1% 0.8% -1.4% 1.2% 1.4% 0.2% 14.0% 11.2% -2.7% 0.9% 0.9% 0.0%
22R&P 3.2% 4.0% 0.7% 4.4% 7.1% 2.6% 3.7% 4.4% 0.7% 1.1% 0.9% -0.2% 3.5% 3.3% -0.2%
23Glass 7.5% 6.1% -1.4% 5.0% 5.7% 0.7% 3.3% 3.8% 0.5% 1.2% 0.7% -0.5% 10.7% 8.2% -2.4%
24Iron & steel 13.1% 6.1% -7.0% 2.7% 4.2% 1.4% 5.6% 3.9% -1.7% 0.2% 0.2% 0.0% 4.0% 2.9% -1.1%
25Mechanicals 5.1% 4.5% -0.6% 3.7% 1.8% -1.9% 8.0% 8.4% 0.4% 6.6% 5.3% -1.4% 7.0% 6.8% -0.2%
26Electronics 1.8% 2.0% 0.2% 1.7% 3.4% 1.6% 18.8% 18.4% -0.4% 24.9% 19.5% -5.4% 3.8% 15.9% 12.1%
27Electric 3.3% 3.3% -0.1% 3.2% 3.7% 0.5% 3.2% 3.6% 0.5% 0.7% 0.9% 0.1% 3.3% 3.2% -0.1%
28Machinery 9.1% 8.3% -0.9% 2.3% 2.6% 0.3% 10.9% 11.3% 0.4% 16.3% 12.8% -3.5% 1.8% 1.8% 0.0%
29Vehicles 4.7% 5.9% 1.3% 7.2% 10.4% 3.2% 7.7% 8.6% 0.9% 0.3% 0.4% 0.1% 2.2% 2.8% 0.5%
30Other transport 3.3% 3.4% 0.1% 8.1% 2.6% -5.5% 8.2% 5.3% -2.9% 10.0% 7.7% -2.3% 7.3% 5.2% -2.1%
31Furniture 0.1% 0.2% 0.1% 0.8% 1.1% 0.3% 0.5% 0.6% 0.1% 0.5% 0.3% -0.1% 2.3% 2.5% 0.2%
32Others 1.5% 1.6% 0.1% 0.6% 1.2% 0.5% 0.5% 0.6% 0.1% 2.3% 3.9% 1.6% 0.9% 1.2% 0.3%
33Repair 0.4% 0.2% -0.1% 0.3% 0.3% -0.1% 0.0% 0.8% 0.8% 0.3% 0.3% 0.0% 1.2% 0.7% -0.5%
Source: UNIDO Indstat

13. 13
Manufactured export
2. Performance of
Manufacturing in
Vietnam
• Manufactured export has accelerated in the
period 2006-2016;
• Viet Nam’s share of manufactured export in
total export is higher than that of other
ASEAN members (Thailand, Malaysia,
Philippines, Indonesia)
Source: UNComtrade

14. 14
Trade in value added (TiVA)
2. Performance of
Manufacturing in
Vietnam
• Accelerated export value but declining
domestic value added content of gross expor
ts (from 56% in 2006 to 52% in 2015)
• Foreign value added content is mainly from
China and Korea; ASEAN is becoming less
and less significant
46%
38%
28%
33%
46%
37%
32%
27%
29%
27%
38%
44%
53%
39%
23%
27%
27%
28%
22%
23%
16%
18%
19%
27%
31%
36%
40%
45%
48%
50%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Japan
Indonesia
China
India
Philippines
Korea
Thailand
Malaysia
Viet Nam
Singapore
Trade in value added: Foreign/domestic content (2015)
Direct domestic VA Indirect domestic VA Re-imported domestic VA Foreign VA
44%
40%
27%
31%
36%
38%
29%
35%
25%
26%
42%
39%
44%
41%
26%
22%
28%
21%
23%
20%
15%
21%
28%
28%
37%
40%
44%
44%
52%
54%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Japan
Indonesia
China
India
Korea
Philippines
Thailand
Viet Nam
Malaysia
Singapore
Trade in value added: Foreign/domestic content (2006)
Direct domestic VA Indirect domestic VA Re-imported domestic VA Foreign VA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Vietnam ASEAN EU28 US Japan Korea China ROW
Source: OECD

15. Employment in manufacturing
2. Performance of
Manufacturing in
Vietnam
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Singapore Republic of Korea Malaysia Indonesia Philippines India Viet Nam
MVA per employee (USD)
2009 2015
• Number of employees: 9.717.400 persons
• Employment structure change: 14% (2006) -17% (2016)
• MVA per employee = productivity in manufacturing –
lowest among comparators
Source: UNIDO Indstat

16. 16
Product space’s visualization
2. Performance of
Manufacturing in
Vietnam
China (2016)
Thailand (2016)
Korea (2016)
Viet Nam (2016)
Textile, garment,
footwear
Fish, coffeeElectronics
Automotive,
Machinery
Chemicals Wood,
furniture
Metallurgy
Source: http://atlas.cid.harvard.edu

17. ▶ Improvement in CIP index derives mainly from manufactured export
performance
▶ Vietnam’s competitive advantage is mainly based on market size
▶ MVA and MVA per capita of Viet Nam are still the lowest among ASEAN6
▶ Manufactured export performs well, but are still lower than that of ASEAN4
and highly relies on FDI
▶ Increase in export value but decrease in the share of domestic value added
▶ Structure change is driven by market-seeking FDI, does not show the trend
toward more industrialized
17
Key takeaways
2. Performance of
Manufacturing in
Vietnam

18. 3. Sectoral competitiveness
analysis
 Cross-sectoral benchmark
 Strategic issues
 Policy orientations

19. Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
No. of employees (1000 persons) CAGR Export value (mil. USD) CAGR Value added (mil. USD) CAGR
2006 2011 2016 2006-2011 2011-2016 2006-2016 2006 2011 2016 2006-2011 2011-2016 2006-2016 2006 2011 2016 2006-2011 2011-2016 2006-2016
10Food 525 690 734 6% 1% 3% 3,855 7,631 9,376 15% 4% 9% 2,879 7,255 10,457 20% 8% 14%
11Drinking 72 98 99 6% 0% 3% 25 133 242 40% 13% 26% 1,115 2,978 3,259 22% 2% 11%
12Tobacco 14 14 11 -1% -4% -2% 106 203 277 14% 6% 10% 306 586 287 14% -13% -1%
13Textile 159 217 557 6% 21% 13% 1,247 1,757 2,983 7% 11% 9%
14Garment 603 962 1,427 10% 8% 9% 6,680 17,045 29,175 21% 11% 16% 1,047 1,579 3,844 9% 19% 14%
15L&F 630 910 1,363 8% 8% 8% 4,056 8,076 16,948 15% 16% 15% 1,025 1,774 4,158 12% 19% 15%
16Wood 204 199 228 0% 3% 1% 212 561 1,108 22% 15% 18% 373 951 1,610 21% 11% 16%
17Paper 140 200 229 7% 3% 5% 168 419 586 20% 7% 13% 680 1,496 2,158 17% 8% 12%
18Printing 78 123 147 9% 4% 7% 11 22 78 14% 28% 21% 234 607 1,076 21% 12% 16%
19Petroleum 4 5 6 5% 3% 4% 482 2,054 769 34% -18% 5% 126 1,236 1,188 58% -1% 25%
20Chemicals 133 188 261 7% 7% 7% 500 2,230 2,961 35% 6% 19% 1,389 2,920 4,691 16% 10% 13%
21Pharmaceutical 27 38 51 7% 6% 7% 22 72 127 26% 12% 19% 290 429 731 8% 11% 10%
22R&P 123 195 326 10% 11% 10% 890 2,584 4,542 24% 12% 18% 634 1,602 2,667 20% 11% 15%
23Glass 446 586 575 6% 0% 3% 454 1,247 2,492 22% 15% 19% 2,053 4,837 6,586 19% 6% 12%
24Iron & steel 54 82 103 9% 5% 7% 397 2,668 3,761 46% 7% 25% 338 1,801 2,327 40% 5% 21%
25Mechanicals 286 499 671 12% 6% 9% 579 1,441 2,845 20% 15% 17% 1,078 3,191 5,426 24% 11% 18%
26Electronics 60 241 620 32% 21% 26% 1,880 12,515 59,164 46% 36% 41% 380 1,731 12,713 35% 49% 42%
27Electrical equipment 150 189 243 5% 5% 5% 1,541 4,298 9,109 23% 16% 19% 761 1,514 2,575 15% 11% 13%
28Machinery 79 123 149 9% 4% 6% 411 1,216 2,808 24% 18% 21% 363 826 1,433 18% 12% 15%
29Vehicles 42 79 128 14% 10% 12% 478 1,069 2,199 17% 16% 16% 380 1,019 2,200 22% 17% 19%
30Other transport 175 221 236 5% 1% 3% 27 808 1,049 97% 5% 44% 1,411 3,311 4,124 19% 4% 11%
31Furniture 248 283 355 3% 5% 4% 1,783 3,140 5,537 12% 12% 12% 635 1,027 1,965 10% 14% 12%
32Others 86 128 190 8% 8% 8% 671 3,819 3,290 42% -3% 17% 209 403 920 14% 18% 16%
33Repair 20 53 87 22% 10% 16% 74 566 582 50% 1% 23%
Source: UNIDO Indstat, UNComtrade

20. 20
Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
Source: UNIDO Indstat, UNComtrade

21. Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
18%
36%
18%
30%
26%
40%
29%
29%
15%
30%
30%
25%
25%
24%
27%
29%
20%
49%
28%
44%
25%
28%
14%
23%
22%
35%
20%
16%
22%
17%
17%
14%
9%
16%
32%
36%
38%
45%
46%
46%
48%
48%
50%
50%
53%
53%
58%
59%
59%
62%
63%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Coke and refined petroleum products
Other non-metallic mineral products
Food products, beverages and tobacco
Paper products and printing
Basic metals
Textiles, wearing apparel, leather and related…
Chemicals and pharmaceutical products
Manufacturing
Wood and products of wood and cork
Other manufacturing; repair
Motor vehicles, trailers and semi-trailers
Rubber and plastic products
Other transport equipment
Fabricated metal products
Electrical equipment
Computer, electronic and optical products
Machinery and equipment, nec
Trade in value added: Foreign/domestic content (2015)
Direct Domestic VA Indirect domestic VA Re-imported domestic VA Foreign VA
21%
44%
47%
35%
34%
33%
20%
30%
33%
35%
31%
30%
36%
27%
32%
28%
23%
43%
20%
10%
21%
21%
18%
31%
20%
16%
14%
18%
19%
12%
19%
14%
13%
17%
36%
36%
42%
44%
45%
48%
49%
50%
50%
50%
51%
51%
52%
53%
54%
58%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Food products, beverages and tobacco
Other non-metallic mineral products
Textiles, wearing apparel, leather and related…
Manufacturing
Paper products and printing
Other manufacturing; repair
Wood and products of wood and cork
Motor vehicles, trailers and semi-trailers
Computer, electronic and optical products
Chemicals and pharmaceutical products
Coke and refined petroleum products
Rubber and plastic products
Electrical equipment
Other transport equipment
Basic metals
Fabricated metal products
Machinery and equipment, nec
Trade in value added: Foreign/domestic content (2006)
Direct Domestic VA Indirect domestic VA Re-imported domestic VA Foreign VA
Source: OECD

22. 22
Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
100%
60%
95%
89%
79%
0
10
20
30
40
50
60
Telephones Apparels Computers Machinery Footwears
Exportvalue(bil.USD)
FDI export vs. Total export
Total export FDI export
91%
56%
89%
58%
40%
0
5
10
15
20
25
30
35
40
45
Computers Machinery Telephones Fabrics Steels
Importvalue(bil.USD)
FDI import vs. Total import
Total import FDI import
-20
-10
0
10
20
30
40
Total trade balance Telephone Computer Machinery
Tradebalance(bil.USD)
Trade balance
Total trade balance FDI trade balance
• In 2018, FDI accounted for 70% of total export, and 60% of total import
• Among top 5 export products, FDI accounted for 80% and above, except
for apparel (60%)
• Among top 5 import products, FDI accounted for about 90% of
computers and telephones; more than 50% for fabrics and machinery
• Trade surplus of telephone contributed to improve the total trade
balance
Source: Viet Nam Customs

23. Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
Source: UNIDO Indstat, UNComtrade

24. Cross-sectoral benchmark
3. Sectoral
competitiveness
analysis
Source: Authors’ calculation

25. ▶Food processing (ISIC code 10)
▷ Scores: Balance - 12, Scale-focused - 14, Growth-focused - 10, Efficiency-focused - 12
▶Textile & garment and Footwear (ISIC code 13-15)
▷ Scores: Balance - 14, Scale-focused - 16, Growth-focused - 14, Efficiency-focused - 13
▶Electronics (ISIC code 26)
▷ Scores: Balance - 20, Scale-focused - 20, Growth-focused - 20, Efficiency-focused - 19
▶Vehicles (ISIC code 29)
▷ Scores: Balance - 13, Scale-focused - 12, Growth-focused - 14, Efficiency-focused - 14
25
Selected sectors for further analyses
3. Sectoral
competitiveness
analysis

26. 26
Sectoral analysis: TGLF
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fibers Fabrics Apparel Leather, furs Bags, luggage Footwear
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Vietnam Korea Japan EU28 China ASEAN USA Rest of the World
(i) Value added (ii) Employment
(iii) Trade
(iv) Value-chain
3. Sectoral
competitiveness
analysis

27. 27
Sectoral analysis: Electronics
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MillionsUSD
Electronics components Computers and peripherals Communication equipment
Consumer electronics Other electronic equipment
-
50,000
100,000
150,000
200,000
250,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electronics components Computers and peripherals Communication equipment
Consumer electronics Other electronic equipment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Vietnam Korea Japan EU28 China ASEAN USA Rest of the World
(i) Value added (ii) Employment
(iii) Trade
(iv) Value-chain
3. Sectoral
competitiveness
analysis

28. 28
Strategic issues vs. Recommendations
3. Sectoral
competitiveness
analysis
Strategic issues Recommendations
Food processing
• High dependence on imported food processing machines
• Increasing dependence on input materials from China
• Market diversification can still be improved further
• Support for R&D
• Equipment/facility lending program
• Fostering and supporting skilled labor
• Establishing food industry clusters
• Standardization of local produce
Textile-garment and leather-footwear
• Fragmented value chain, low domestic value added
• Too much dependence on import of fabrics,
• High dependence on FDI, through subcontracting
• Transform the industry into one that generates high val
ue-added products
• Find ways to improve manufacturing efficiency: innovati
on in production technology
Electronics
• FDI is dominance, decreasing domestic value added
• Low product diversification
• Focus on IT software and R&D system
• Creating a start-up ecosystem in the eltr. industry
• Promote the mobile software industry
• Establishment of a high value-added eltr. Industry
Automotive & motorbike
• Fragmented supplier network
• Small market volume (automotive)
• Low cost competitive
• Updates in forecasting for expected total demands (incl.
EV and other environment friendly vehicles
• Develop an ecosystem for automotive industry, incl.
environmental issues, market associated trade, SI…

29. 4. Policy recommendation

30. ▶Targets:
▶Upgraded industrial competitiveness
▶Improved manufacturing roles in the economy (MVA, employment, trade, value-chain)
▶Included inclusiveness and sustainability
▶Strategic issues:
▶MVA & Trade quality in CIP
▶Local industry vs. FDI
▶Value-chain vs. trade balance
▶Policy implications:
▶Improving domestic capabilities (capacity building for local firms)
▶Boosting manufacturing productivity
▶Enhancing FDI linkages to the domestic production system
▶Introduction of M&E system; choosing the right type of evaluation method
30
Targets, Strategic issues & Policy recommendations
4. Policy
recommendation

31. 31
Strategic targets: Baselines & Data source for M&E
Indicator Target Baseline (2016) Data source???
To 2025 (Decision 879)
MVA growth (%) 7-7.5% 8.6% (2006-2016) Indstat? WDI? GSO?
Share of industry-construction in GDP (%) 42-43% 32.72% (2016) WDI? GSO?
Share of mnf. export in total export (%) 85-88% 85% (2016) UNComtrade? WDI? GSO?
To 2030 (Resolution 23)
Share of mnf. in GDP (%) 30% 14.27% (2016) WDI? GSO?
MVA growth (%) 10% 8.6% (2006-2016) Indstat? WDI? GSO?
Industrial productivity growth (%) 7.5% -- ???
CIP ranking Top 3 in ASEAN 5th (2016) UNIDO CIP Ranking
Labor force of industry and service (%) 70% 58.1% (2016) GSO
4. Policy
recommendation

32. MINISTRY OF INDUSTRY AND TRADE
OF THE SOCIALIST REPUBLIC OF VIETNAM
Thank you!
Trân trọng cảm ơn!
Cục Công nghiệp, Bộ Công Thương
Vietnam Industry Agency (VIA)
23 Ngô Quyền, Hoàn Kiếm, Hà Nội
Tel.: 024.3.996.7189
Fax: 024. 3.823.8387
Email: via@moit.gov.vn