Page 44 - Ebook HTKH 2024

growth rate in the past decade, contributing less to economic growth compared to
previous years.

The industrial production index and output for many key industrial sectors have
decreased compared to the same period, including automotive, motorcycles, steel,
electronics, mobile phones, leather footwear, and clothing.
The production capacity of the industrial sector is still slow to improve, with
limited progress in addressing existing bottlenecks, particularly in fundamental and
essential industries.
According to data from the Ministry of Industry and Trade, in 2023, the
consumption index for the entire manufacturing and processing industry increased by

1.8% compared to 2022, significantly lower than the 7.1% increase in 2022. Meanwhile,
the high inventory rate (an average of 87.5% in 2023 compared to 78.1% in 2022)
indicates production and consumption difficulties in the industrial sector. Therefore, the
low consumption index for the manufacturing and processing industry and the high
average inventory rate in 2023 reflect challenges in industrial production.
To assess the development of import-dependent industries in Vietnam and their

role in green economic growth, here are analyses of some import-dependent industries
that contribute significantly to export value but lack sustainability, thus not fostering
sustainable development for the industrial sector and the economy as a whole.
Firstly, the automotive supporting industry: the number of automotive parts
suppliers in Vietnam is relatively small, comprising mechanical and plastic
manufacturing companies with limited technology and experience in the automotive
field. As small and medium-sized enterprises, automotive supporting industry

companies in Vietnam struggle to access credit, have weak production and business
management, and fail to meet the requirements of automobile manufacturers.
Additionally, essential materials for automotive production, such as steel, plastics, and
resins, are largely imported, reducing production autonomy and competitiveness.
According to the Ministry of Industry and Trade, the automotive industry currently
imports 80% of its components. After nearly 30 years of development alongside the

automotive industry, the automotive supporting industry in Vietnam still has many
limitations. To assemble a car, approximately 20,000-30,000 parts are needed, but
domestic enterprises produce only 287 parts and assemblies, mostly simple and bulky
items like windshield adhesives, inspection stickers, fuel labels, energy labels, fuel and
water pipes, radiator caps, tubeless tires, wires, mudguards, seats, bumpers, license plate
holders, batteries, wheels, exhaust pipes, air conditioning systems, etc. Only a few
enterprises have invested in body and chassis stamping lines. Important components like
engines, transmissions, safety systems, and electronics, particularly semiconductors, are

still not produced domestically and are heavily reliant on foreign suppliers.
The Ministry of Planning and Investment has published a list of machinery,
equipment, spare parts, specialized transport vehicles, raw materials, and semi-finished
products that are produced domestically. According to this list, Vietnam has only

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