Hanoi (VNA) – As Vietnam is emerging as amagnet for foreign businesses, domestic companies now have numerousopportunities to join global supply chains and develop supporting industries.

Among the 1,300 European businesses inquiring about theinvestment climate in Vietnam, up to 63% listed the country among the top 10destinations for foreign direct investment (FDI) firms, the Sai Gon Giai phong(Liberated Saigon) daily reported.

Gabor Fluit, Chairman of the European Chamberof Commerce (EuroCham) in Vietnam, held that the country’s efforts to improvethe investment environment have paid off as seen in the strong cuts of durationfor handling administrative procedures and the application of online publicadministrative services in many localities, especially those housing manyexport processing and industrial zones like Ho Chi Minh City, Binh Duong, DongNai, and Quang Ninh.

Foreign investment registered during the first ninemonths of 2023 was estimated at 15.91 billion USD, the highest nine-monthfigure over the last five years, according to the Ministry of Planning andInvestment.

A number ofgiant multinationals have also been present in Vietnam, including Apple, Qualcomm, Nike, MorganStanley, Intel, GE, ACORN International, General Dynamics, and Google.

Le Nguyen Duy Oanh, Deputy Directorof the HCM City Centre for Supporting Industries Development, said the strong FDIinflux into Vietnam also means rising demand for products of supportingindustries in industrial supply chains. Therefore, domestic businesses shouldselect supply chains to join so as to supply products of supportingindustries and raise the value of their commodities.

However, companies in supportingindustries are also encountering difficulties when demand in the market isswitching to the products and components serving the artificial intelligence,high medical technology, and electronics industries.

Recommendingbusinesses make changes when selecting partners to supply products for, TruongThi Chi Binh, Vice Chairwoman of the Vietnam Association for SupportingIndustries, noted Vietnamese companies are strong at the mechanical supportingindustry, especially aluminum, bronze, and plastics products which are in demandin the US, Japan, and the Republic of Korea.

Theyshould actively access foreign markets and partners, she suggested, adding thatthe Ministry of Industry and Trade should also order overseas trade counsellorsto survey market demand and provide timely information to businesses.

Fluit said EU businesses haveinvested over 26 billion USD in about 2,250 projects in Vietnam. They haveconnected with local companies, and bilateral ties will become even stronger toform and expand global supply chains.

To better FDI attraction, herecommended the country strongly promote the legal environment’s transparency,upgrade transport infrastructure, relax visa and work permit requirements forforeign experts, encourage businesses to conduct digital transformation andgreen transition to overcome new technical barriers in the global market,including Europe.

Subbaramu Mysore Venkataramaiah, head of the R&D division at BoschVietnam, pointed out that tightened regulations on greenhouse gas emissions andthe environment and increased awareness of climate change have boosted the automobileindustry’s development of e-vehicles and clean energy solutions. The insufficiency of electronic chips has also led to car shortages and fuel production costs. Besides,the competition among suppliers at all levels and in all sectors is fierce.

All the factors require Vietnamese suppliers quickly conduct transition,make adaptation, and step up innovation to sustainably join global supplychains, he opined./.