HÀ NỘI — The Government has approved policy directions for a proposed Law on Key Industries.

The resolution affirms the necessity of drafting the law to institutionalise the Party’s policies on industrialisation and modernisation while improving the legal framework to promote the development of strategic industrial sectors. It also supports the country’s long-term goal of becoming a high-income developed nation under a socialist-oriented market economy.

The Government has largely agreed with two major policy groups proposed by the Ministry of Industry and Trade. The first focuses on encouraging domestic production and manufacturing of key industrial products, while the second aims to strengthen the development of supporting industries.

The ministry has been tasked with coordinating with relevant ministries and agencies to further refine the policy framework in line with Government members’ feedback.

The law is expected to address major bottlenecks hindering the development of key industrial sectors by shifting the growth model from extensive expansion to deeper value creation. It also seeks to move industries away from processing and assembly activities toward research, design and manufacturing in Việt Nam with higher technological and knowledge content.

Another key objective is to promote localisation in a manner consistent with international trade rules and origin requirements under bilateral and multilateral trade agreements. The policies will encourage Vietnamese enterprises to participate more deeply in global supply chains and make better use of incentives provided by new-generation free trade agreements by complying with rules of origin.

The draft law will also include provisions to attract and manage foreign direct investment in key industrial sectors in a more selective manner. Priority will be given to high-tech and foundational industrial projects while ensuring stronger technology transfer and linkages with domestic enterprises to enhance national production capacity.

Relevant authorities will review the implementation of existing legal regulations to ensure that the proposed law is practical and feasible while addressing current shortcomings and inconsistencies. The framework will also be aligned with international treaties to which Việt Nam is a party.

The Ministry of Industry and Trade will lead the drafting of the Law on Key Industries and submit it to the Government. — BIZHUB/VNS