Illustrative photo (Photo: VNA) HCM City (VNA) – The Supporting Industry Show 2018 will be heldon October 11-13 in the Saigon Exhibition and Convention Centre in Ho Chi MinhCity, introducing more than 500 brand names with the latest metal processingtechnologies from 25 countries.
The expo aims to foster connectivity among businesses in the supportindustries of Vietnam and Japan, promoting the growth of the automobile andelectronics sectors in Vietnam.
The event is expected to draw 18 big brands from Japan as buyers, and 30Vietnamese firms as suppliers who are supported by the Ho Chi Minh CityInvestment and Trade Promotion Centre (ITPC) and the city’s Centre for SupportIndustry Development (CSID).
According to ITPC Vice Director Cao Thi Phi Van, engaging in the SupportingIndustry Show is part of the centre’s plans to develop the support industry.
The plans include forming a domestic production network meeting demandfor complete products and joining global value chain, encouraging foreigndirect investment (FDI) firms to enter the support industry and assisting smalland medium-sized enterprises to supply supporting products to reduce imports ofthe products and enhance added value.
Recently, Vietnam has seen positive changes in its investmentenvironment.
Suttisak Wilanan, Vice Director of Reed Tradex company noted that lastyear, Vietnam leaped five steps to 55th position in the Global CompetitivenessIndex by the World Economic Forum.
Takimoto Koji, head of the Japan External Trade Organisation (JETRO) inHo Chi Minh City said that total Japanese investment in Vietnam has increasedsharply to 8.64 billion USD in 2017 from 2.15 billion USD in 2016. Also in theperiod, new investment rose from 1.18 billion USD to 7.76 billion USD.
Some 70 percent of surveyed Japanese firms said they will expand businessin Vietnam in the next 1-2 years, the highest number in six surveyed countriestogether with the Philippines, Indonesia, Malaysia, China and Thailand.
With a network of 16 bilateral and multilateral free trade agreements,Vietnam is a link in the high value chain.
The deals have considerably eased barriers in taxes and opened the doorfor foreign investment. But the localised product ratio of Vietnam in 2017 was33.2 percent, the lowest among the six surveyed countries, according to JETRO.
Meanwhile, statistics from the Ministry of Industry and Trade showedthat there are 661 businesses in supporting industry, 591 of which produceelectronic accessories, 56 make computers and peripheral devices and 15 producemagnetic disks and optical products.
Luu Hoang Long, President of the Vietnam Electronic Industry Associationsaid few domestic firms in the electronics supporting industry supply FDI firmsdue to limited mutual understanding and loose links.
Some experts said this is a good time for some sectors, includingautomobiles, to seek stronger ties with support industry firms, as one car ismade of more than 30,000 parts, making it hard for one country to provide allof the parts.
Vietnam, with its strategic position in the centre of the ASEAN withmany big seaports, has abundant opportunities to cooperate with carmakers ofThailand and Indonesia to create a sustainable automobile sector, they said.
They also pointed to big opportunities for the mechanical industry of HoChi Minh City, especially automobile production as the city’s industrialproduction index during 2016-2017 was high at 7.9 percent.
Forging stronger ties with CSID and foreign organisations such as JETROwill help local firms to enhance their supplying capacity, foster links withother firms in and outside the country and prepare to join global supplychains.-VNA
VNA
