Deputy Phan Van Quy: Marine economic development needs a special mechanism

Giving suggestions in the 10th session, 13th National Assembly that is taking place, the Deputy Phan Van Quy said that, compared to the early sessions, our country’s economic – social situation has, at present, had several active changes, the macroeconomics were stable, the business investment environment was improved, the social security was assured, the defense and security were strengthened, the national sovereignty was maintained, the foreign affairs and international integration have achieved many impressive results, contributing to raise our country’s reputation and position in the international market.

However, in recent years, the world and region situation have more complicated changes, the domestic socio-economic situation has many interleaved advantages and challenges. Basically agreed with the report of the Government on socio-economic development plan for 2016, the Deputy Phan Van Quy also highlighted two major problems.

The first problem is that the marine economic development should enhance resources to the military shipbuilding enterprises because the maritime economy is a specific economic sector so the implementation must also have a special mechanism.

At the 3rd session 3, while giving comments on the Law of the Sea, he has proposed to reduce marine economic development duty to some enterprises in the same industry from the Ministry of Defense. Also at the hearing dated June 13th, 2012 in the hall, he also sent to the Minister of Planning and Investment the question: According to the Minister, is it necessary to marine economic development duty to some enterprises in the same industry from the Ministry of Defense? The Minister Bui Quang Vinh has agreed withand supportedit; he will make this content into the economic restructuring program.

Then, at the 5th session, Deputy Phan Van Quy continued proposing to cut marine economic dutyof weak units who do not complete the taskstobe assigned to qualified defense enterprises.

We persevere repeatedly in raising the above mentioned issue for several reasons. Firstly, for maritime security. Marine economic development going hand in hand with  protection, preservation of maritime security is a logical process in which the army plays an important role. Experts have confirmed that all declaration and sovereignty have only brought national benefits, when it was associated with real power and via the country’s presence in sovereign waters. Secondly, international experience shows that it needs strong defense enterprises. Overlooking the region, we can see that ST Engineering Company subject to Temasek Group, Singapore is an example. This is a public company with approximately 35,000 shareholders, the State accounts for about 50%, but in the last 5 years, the average annual revenue of this unit is about 5 billion USD, ranking No. 1 in South East Asia on defense industry and marine economy”, said Phan Van Quy.

Regarding military enterprise, the practice shows that our country’s military enterprises are closely organized, have the system from ministerial agencies to member units, thus in case of occurrence of instability, the handling is very fast. In the past years, some military enterprises have had success with many brands, featured as Viettel, Tan Cang, Ba Son, Song Thu, Hong Ha, MB, of which the military shipyard plants havedelivered modern ships, satisfying strict military and export technical requirements. Even approximately 40% of its equity owned by the State, the Military Commercial Joint Stock Bank still maintains stable development in the strong posture, confidence with military style management and administration method.

Thus, it is necessary and reasonable to increase resources to military enterprise for shipbuilding, so that these enterprises make technological innovation, lead the country’s shipbuilding to contribute to strengthen marine economic exploitation and to ensure maritime security. Shipbuilding industry development should go hand in hand with the development of auxiliary industry and localization program.

Currently, we set up the auxiliary industry development master plan by 2020, with a vision to 2030, this is a right policy, from the Decision 1791 of the Prime Minister in 2002, the energyindustry localization program has been strengthened and achieved each effective step.

In 3 recent years, Vietnam Electricity Group and Vietnam Oil and Gas Group had many projects with high localization rate, of which, some works reached 35-40%. However, by 2018-2020, about 90% of tariff lines will be removed and it is expected that in 2028, 2030, over 80% of the export turnover of Vietnam hasa rate of 0 in accordance with the bilateral and multilateral agreements that our State has signed. Thus, the production and manufacture of the industries will be shortened, but the geographical balance for the shipbuilding industry will be still high.

Therefore, Vietnam needs planning, building infrastructure, increasing resources to make a breakthrough development in shipbuilding industry, promoting auxiliary industry to respond to the shipbuilding industry and the localization must be maximized.

According to the Deputy, businessman, Armed Forces Hero Phan Van Quy, for theeffective marine economic development program, creation of more resources for the country's shipbuilding industry contributing to protect and maintain maritime security, it is necessary to early raise more resources to military shipbuilding enterprises, to build and develop these enterprises under the military bank’s model, to have roadmap to enhance the Ordinance on defense industry to Law on defense industry development.

Besides, the shipbuilding industry development should go hand in hand with auxiliary industry development and localization program. The localization program is required in shipbuilding industry, such as the Decision No. 1791 of the Prime Minister has been carried out in the energy industry, the Law on localization should be early enacted.