Domestic manufacturing and processing companies, including foreign-invested enterprises, continue to heavily rely on imported raw materials, intermediate products, and production machinery. This dependency is a key factor behind the low localization rate. Therefore, deeper integration into the supply chain and reducing reliance on imports have become crucial goals for manufacturing and processing businesses in Vietnam.
Vietnamese enterprises in the auto industry are not deeply involved in the global supply chain. To become global suppliers, domestic enterprises must be consistent with the management culture and business philosophy of global manufacturers, experts have said.
Automobile sales in Vietnam are forecast to reach 1 million units a year by 2025, opening up substantial opportunities for businesses to develop a supporting industry for the sector.
Foreign direct investment (FDI) into electronics should aim to promote local companies and enable them to engage in the global value chain, industry insiders have said.
The 16th International Autotech & Accessories Show 2019, themed “Autotech – Automation”, will take place in Hanoi from September 4 – 7 with nearly 200 pavilions.
Only about 300 of the over 1,800 businesses working in supporting industries in Vietnam have joined production chains of multinational enterprises, a figure described by analysts as too modest.
Supporting industry development will create a driving force for Vietnam’s automobile industry, as heard a seminar held by the Vietnam Association of Supporting Industries on May 24.
Vietnam’s electronics enterprises should enhance linkages and increase productivity if they want to grow sustainably and integrate more deeply into the global supply chain, experts said.
The Vietnam Association of Supporting Industries was officially established in Hanoi on March 18 with a view to contributing to relevant policy planning and connecting domestic and foreign markets.
