iii) Support export promotion centers with techniques, experts, and lecturers to organize seminars, workshops, and training courses on market topics, business operations, export promotion operations, etc.
iv) Create conditions for local export promotion center staff to participate in market survey delegations and attend overseas trade fairs organized by the Trade Promotion Department and other export promotion organizations.
v) Announce the program to organize meetings for foreign business delegations coming to Vietnam to find partners so that export promotion centers can proactively organize meetings and contacts for local business delegations.
vi) Propose plans, orientations or common action programs for all export promotion centers nationwide so that these centers have clear operational orientations under the direction and support of the Trade Promotion Department, while creating conditions for these centers to research and develop specific export promotion programs suitable to the reality of each locality.
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3.3.3. The State needs to have a breakthrough policy in adjusting the economic structure to maximize comparative advantages in export-oriented industrialization.
To carry out the shortened industrialization based on export orientation, there must be a breakthrough in economic structural transformation. That structure must be capable of maximizing comparative advantages, both existing advantages and potential advantages of the country, both meeting the requirements of transition to industrial and service economy, and implementing the step-by-step development of knowledge economy.
Starting from a predominantly agricultural economy, Malaysia started with export-oriented manufacturing industries, using labor (the most important comparative advantage in the early stages of industrialization) and capital when the comparative advantage in labor-intensive production gradually decreased (the period between industrialization processes) and now, Malaysia has begun to develop strongly in technology- and knowledge-intensive industries (a new step started after
:The end of industrialization and joining the orbit of developed economies). From the experience of Malaysia, it can be seen that: First, the state must always put the issue of restructuring the national economy in the production chain of the whole region. Because liberalization and regional integration have created the possibility of reallocating labor-intensive sectors of the production chain to low-cost areas (usually in latecomers and countries with lower levels of development), but with open-mindedness and a fairly positive level of readiness for integration. This is the premise of structural shift throughout the region and the condition for countries to determine the possibility of shifting, choosing priority sectors for domestic development. In fact, this is also the starting point for Malaysia to change from the position of a country attracting FDI, receiving TNCs to become a country investing directly abroad, forming its own TNCs and in fact increasing its position in the global production network; Second, the sectors selected in the optimal economic growth and development strategy must first of all come from internal advantages. Of course, this advantage always changes in the comparative relationship, can narrow or expand under the different impacts of market relations and the role of the state. These advantages are promoted thanks to the state performing well the role of supporting and promoting them, not changing the role of the market affecting them because without the state, the market will choose itself, although it may take place more slowly. The state's support here is the stages of financial investment, policy orientation to improve the competitiveness in the international market for the selected sectors and in fact it always follows the market principle and the correlation of power in global competition. Therefore, there can be no industries that are protected forever because that will not make it strong enough to face the external market and furthermore, will never be accepted in the process of implementing international economic integration commitments with the requirement of rapid removal of incentives, subsidies, discrimination and protection. The Malaysian government creates a vision and exercises effective leadership in providing a guiding framework,
prepare business corporations (both state and private) to cope with the challenges of global competition. These are suggestions for strategic adjustments in industry structure and economic development strategies for latecomers.
For Vietnam today, establishing an economic structure that ensures quality growth and sustainable development is an urgent requirement. Vietnam's economic growth in recent years has been high but still below potential, especially the growth quality is not high and not stable. Among the many causes affecting this situation is the cause of economic structural change.
In terms of resources, advantages and integration speed, an economic structure in which the proportion of agriculture in GDP is below 10%, the proportion of industrial production is above 40% and the proportion of services reaches 40-50%; at the same time, the proportion of goods exports from 45% (2005 data) to 80-90% as experienced by many countries in the past needs to be achieved within 10 years (from the present to 2015) is completely feasible. These can be considered realistic targets because tax and non-tax incentives are mainly reserved for processed and manufactured industrial products (evidence is that 95% of ASEAN's export products are in 12 priority areas). Raw materials and agricultural products are Vietnam's strengths, but it is necessary to limit the export of raw products as much as possible due to high costs and the difficulty in controlling market share. Actively build Vietnamese brands for coffee, rubber, rice, seafood as well as many industrial products that our country has comparative advantages. In the industrial sector, based on the classification of industries: no competitiveness with conditions that need to specify the development methods for each industry group. For industries that use a lot of labor such as textiles, footwear, electronics, etc., it is necessary to quickly innovate technology, modernize the entire production line to increase the added value of the product. Reality shows that only by ensuring quality and reasonable prices can the competitiveness of goods be improved.
Vietnam in the world market and this is determined by technology and human resource quality. Cheap labor is currently a competitive advantage but in the long term it is not the decisive factor. Competitive advantage is and will change in the direction of the dominance of technology and knowledge factors. Developing new industries is a suitable direction. In fact, the development of the telecommunications industry in our country in recent times is a testament to the usefulness and breakthrough of this service in creating soft infrastructure to serve economic innovation.
Thus, the Vietnamese economy is shifting towards a model that is considered appropriate. That is, increasing the proportion of industry and services, reducing the proportion of agriculture; at the same time, the private economic sector will increase. However, industrialization in the context of market economic development and export promotion, the resource factors: land, labor, resources, capital and technology and finally, total factor productivity (TFP) will have to be operated in a certain way. In Vietnam, the capital factor has had very little effect and the total factor productivity has almost no clear impact on the industry groups. The high ICOR coefficient is usually from 4 to 5 and the total factor productivity has only reached 30% of GDP growth, showing that this is a prominent problem, requiring timely solutions if we want to achieve high and quality growth. Overall, Vietnam lacks capital, but in many areas it is surplus, less profitable and therefore, it is necessary to make reasonable adjustments soon. Similarly, to have TFP contribute up to 40% of GDP to achieve GDP growth rate of 8.5% or more, the issue of technological innovation, facilitation and liberalization must be accelerated, on the one hand to actively integrate with the outside and on the other hand, create a fair and attractive environment for all domestic business entities to participate most effectively in the problem of structural transformation. With the view that the private economic sector and the foreign-invested economy are dynamic, playing the role of driving force for growth, it is necessary to resolutely eliminate large state investment portfolios that have been warned to be ineffective; call for
Call on the private sector to participate in the revolution in labor-intensive fields; boldly let the foreign sector participate in service sectors, especially those that use a lot of technology and knowledge that Vietnam lacks or does not have the conditions to develop. To have high total factor productivity, the role of good macroeconomic management and administration must find truly excellent people because capital, labor and technology "by themselves" will have very little meaning, but once they are molded by wise minds, we will create "breakthroughs" for the economy.
Therefore, in the investment strategy for economic development, Vietnam needs to have choices and priorities. Invest and call for stronger investment in manufacturing industries; in service sectors such as finance, insurance, banking... industries based on modern technology... so that on the one hand, competition can promote the development of these industries, on the other hand, gradually overcome the weaknesses and limitations of resources and infrastructure. Malaysia has also applied these methods to promote economic development, carry out export-oriented industrialization. Becoming "satellite" enterprises, "subcontractors" in the TNCs network will be a way for domestic enterprises to learn, accumulate experience and grow. Many Malaysian enterprises have followed that way and become competitors with foreign TNCs.
In addition, to accelerate the pace of economic restructuring in our country, it is necessary to have a policy of prioritizing the reasonable development of regions and intra-regions. The difficulty in economic restructuring does not come from the need for investment capital, because more capital can be borrowed if it is used for the right purpose and effectively, and at the same time, Vietnam must make efforts to reform and restructure industries. The most difficult problem is the problem of labor restructuring because the majority of the poor live in rural areas. Only by shifting rural labor to the industrial and service sectors can we narrow the development gap and reduce poverty quickly. Industry
Agricultural and rural development is the right policy, but if we only stop with the previous 135-type support projects, the set goals will certainly not be achieved. To solve socio-economic problems, especially in rural and mountainous areas, there must be support from the state, the participation of enterprises in job creation, and solving difficulties in capital and technology to create new developments.
Reality shows that, in order to create an economic structure based on maximizing the country's comparative advantages to promote exports and improve export efficiency, the State needs to innovate investment policies and especially encourage the development of supporting industries to contribute to promoting the development of export production industries and increasing the added value of exports.
Malaysia's experience shows that, in order to implement an export-oriented industrialization strategy, the State needs to make adjustments in investment policies to facilitate and encourage the development of export-oriented manufacturing industries.
- The State can still focus on investing in developing the state economic sector - areas related to infrastructure and public services, which often require large investment capital, slow turnover, and lack of attractiveness to private investors, but are essential for all social reproduction processes, and are prerequisites for industrialization because with a weak infrastructure system and an inadequate public service system supporting production and business activities, the ability to attract investment, including domestic private investment, will be greatly limited. Moreover, if the State undertakes these areas well, domestic and foreign private investment resources will have the opportunity to focus strongly on industries and sectors that always require quick responses to market signals, especially processing and manufacturing industries. In addition, in certain areas, the State can also do something, but it must be selective and forecast their development potential and strength in international competition.
At the same time, the State needs to create mechanisms and policy systems to guide businesses to invest in developing production and service industries in line with trends and international division of labor in the direction of promoting their advantages, not doing it for them, imposing and dominating them by leading them by the hand as has been done before.
In other words, the State needs to properly demonstrate its role as a macro-manager so that the economic structure can be renewed according to market principles, according to the new impacts of the international division of labor system, and accordingly, how to make the Vietnamese economy truly participate in the international division of labor and the global value chain instead of being subjectively imposed and at risk of being left out of the international economic integration games on many routes and levels as it is today.
The State's investment policy also needs to focus on the most urgent issues for the implementation of the strategic export-oriented goal, which is the resource constraints for industrialization. To overcome the problems of lack of capital, technology and global marketing network, the State's policy needs to focus on promoting the attraction of FDI capital, especially from multinational corporations, and needs to create a competitive environment for these FDI enterprises to promote the diffusion of technology and industrial development in general. Human resources are the key factor for Vietnam to carry out industrialization. Foreign investors are willing to transfer technology if people in the host country are able to grasp and master that technology more effectively than production in other countries.
The State's effective and legal support policy in the new context is to support the development of human resources for industries, build a technology market, and improve the enforcement of intellectual property protection laws to encourage the development of science and technology. Especially for industries in important infrastructure such as energy (especially electricity), transportation, communications,
Construction, water supply and drainage systems... are essential for economic development. With the current state of Vietnam's infrastructure being backward and weak, prioritizing investment to renovate, expand, and modernize synchronously, promptly and effectively serving the needs of socio-economic development is an urgent task. Therefore, State investment needs to be directed towards this activity. In addition, the State needs to have policies to attract diverse social capital sources to invest in infrastructure development.
- Encouraging the development of supporting industries should be considered one of the key contents in the State's investment policy. Currently, in Vietnam's import structure, the proportion of imported production materials is very high (over 90%). This shows that Vietnam's supporting industries are still underdeveloped and not capable of meeting the needs of domestic production. This is also the reason for reducing the competitiveness of domestically produced products, affecting the attractiveness of FDI capital and contributing to the trade deficit. Therefore, the State needs to:
+ Quickly develop a strategy to develop supporting industries, focusing initially on industries that provide inputs for manufacturing industries with large export proportions such as textiles, garments, electronics, footwear and manufacturing industries such as automobiles and motorbikes.
+ Adjust tax policies to encourage domestic enterprises to invest in developing supporting industries. Currently, we do not have a policy to encourage enterprises to use domestically produced materials, the import tax on these items (for re-export) is 0%. Currently, enterprises using domestically produced materials to produce export goods not only do not enjoy incentives but also have to pay input value added tax, although it is refunded, many procedures must be carried out.
+ Gradually reduce protection for domestically produced raw materials and fuels to bring businesses into a competitive environment and adapt to the increasingly expanding liberalization environment.