Illustrative image (Source: VNA) Hanoi (VNA) – A huge influx of foreign directinvestment (FDI) is making its way into the fields of mechanical engineering,and manufacturing and processing, which are expected to fuel the supportingindustry in the coming years if Vietnam issues effective policies, industryinsiders have said.
According to the Ministry of Planning and Investment (MPI), foreigninvestors helped fund 19 out of 21 economic sectors as of the late August – mostlyin manufacturing and processing, and mechanical engineering – with 190.56billion USD, accounting for 57 percent of the total.
Economist Tran Van Tho from Tokyo’s Waseda University said FDIis an effective investment attraction channel if Vietnam issues proper policies,adding that FDI brings along with it technology, capital and governance frommajor industrial corporations.
He proposed creating favourable conditions for foreign-investedenterprises to improve product quality and hold dialogues with major mechanicalengineering firms to encourage business expansion.
Amidst the Fourth Industrial Revolution, it is necessary toattract FDI selectively, with focus on quality rather than quantity, he said.
Vice Chairman and General Secretary of the VietnamAssociation of Mechanical Industry Dao Phan Long said most of domestic mechanicalengineering firms are still using outdated technologies, while foreign-investedenterprises are yet to form close links with domestic partners.
Recently, many firms from the Japan External TradeOrganisation in Ho Chi Minh City plan to switch their manufacturing lines in machineryand metallurgy from China to Vietnam. The trend is forecast to increase in thenear future, reported the association.
Deputy head of the MPI’s Department of Industrial Economics LeThuy Trung urged economic sectors, especially foreign-invested ones, to investin mechanical engineering. He called for continuing to speed up equitisationand State divestment in State-owned enterprises in mechanical engineering inline with the law.
Economist Tho stressed the need to change strategies onaccessing FDI and the world’s technology, encourage joint-ventures, and callfor FDI from the world’s most prestigious firms.–VNA
According to the Ministry of Planning and Investment (MPI), foreigninvestors helped fund 19 out of 21 economic sectors as of the late August – mostlyin manufacturing and processing, and mechanical engineering – with 190.56billion USD, accounting for 57 percent of the total.
Economist Tran Van Tho from Tokyo’s Waseda University said FDIis an effective investment attraction channel if Vietnam issues proper policies,adding that FDI brings along with it technology, capital and governance frommajor industrial corporations.
He proposed creating favourable conditions for foreign-investedenterprises to improve product quality and hold dialogues with major mechanicalengineering firms to encourage business expansion.
Amidst the Fourth Industrial Revolution, it is necessary toattract FDI selectively, with focus on quality rather than quantity, he said.
Vice Chairman and General Secretary of the VietnamAssociation of Mechanical Industry Dao Phan Long said most of domestic mechanicalengineering firms are still using outdated technologies, while foreign-investedenterprises are yet to form close links with domestic partners.
Recently, many firms from the Japan External TradeOrganisation in Ho Chi Minh City plan to switch their manufacturing lines in machineryand metallurgy from China to Vietnam. The trend is forecast to increase in thenear future, reported the association.
Deputy head of the MPI’s Department of Industrial Economics LeThuy Trung urged economic sectors, especially foreign-invested ones, to investin mechanical engineering. He called for continuing to speed up equitisationand State divestment in State-owned enterprises in mechanical engineering inline with the law.
Economist Tho stressed the need to change strategies onaccessing FDI and the world’s technology, encourage joint-ventures, and callfor FDI from the world’s most prestigious firms.–VNA
VNA
