The competitiveness of Vietnam's industry, according to a local minister, is weaker than that of other regional economies in such aspects as labor productivity, production effectiveness, science and technology level, and management capacity.

Industry Minister Hoang Trung Hai said although the industry contributes up to 76 percent of Vietnam's export turnover, primary exports are mainly products with some built-in advantages like crude oil, textile, garment, footwear and woodwork, local newspaper Vietnam News reported Monday.

The products' advantages depend largely on low labor cost and the availability of raw materials, Hai said, noting that the advantages are tending to decline.

Some industrial products, including electric wires and cables, and plastic wares, have gained high export growth, but their values and market shares have remained modest. Most Vietnamese industrial businesses are small or medium with their capital being too little to afford advanced technologies, he said.

According to the minister, ministries and sectors need to work together to complete the legal and administrative system to support the need and growth of a market economy, government policies should further promote the development of small- and medium-sized enterprises, and more state-owned enterprises should be reorganized to encourage greater investment in production and business improvement.

Source: Xinhua