The Hanoi Ancillary Industry Business Association (HANSIBA) signed a cooperation agreement with China's Suzhou Foreign Trade Small and Medium Enterprises Promotion Association.

Overview of the signing ceremony. Photos: Nguyen Duong/The Hanoi Times

At the signing ceremony on May 9, Nguyen Hoang, Chairman of HANSIBA, highlighted the huge potential of Vietnamese industrial products, components, and accessories in the global market, amounting to hundreds of billions of dollars in various industries such as electronics, automobiles, marine, and medical accessories.

"Vietnamese enterprises are determined to tap into this market share and seek international cooperation, including partnerships with enterprises in Suzhou," Hoang said.

Hoang suggested a number of potential areas for cooperation, including the introduction of technology chains and the import of raw materials into Vietnam to produce finished goods for export to international markets.

He also highlighted how Chinese companies dominate global supply networks and how this has allowed them to gain access to the US and European markets.

Meanwhile, the Vietnamese business community has shown remarkable resilience and development despite the challenges posed by the Covid-19 pandemic. Vietnamese companies have quickly adjusted and adapted to the pandemic, and their products have even found their way into major global markets.

"The partnership between Vietnamese and Chinese companies could lead to a significant market share in the region and beyond," he said.

Hoang noted that HANSIBA is well prepared to work with manufacturing partners, offering specialized industrial parks for ancillary and high-tech industries.

HANSIBA Chairman Nguyen Hoang at the event.

These industrial parks are equipped with modern facilities such as factories, commercial centers, health care, worker housing, and education to meet the needs of manufacturers, he said, adding that HANSIBA also has qualified companies operating high-tech production lines.

Hoang highlighted the fact Vietnam and China share a long border, which makes it possible to build a logistics network that offers convenient and cost-effective transportation of goods to global markets.

Pan Dongming, Acting President of Suzhou Foreign Trade Small and Medium Enterprises Promotion Association, shared that Suzhou is the leading city in China in terms of industrial production.

He looks forward to working with Vietnamese enterprises to develop processing and manufacturing industries and is interested in exploring potential areas for partnership.

Acting President of Suzhou Foreign Trade Small and Medium Enterprises Promotion Association Pan Dongming.

Pan added that Suzhou enterprises have the geographical advantage of being close to Shanghai and seaports, which allows for fast and convenient transportation of goods to Vietnam.

It takes only one week to ship goods from Shanghai to Hanoi by sea, while road transportation takes a shorter time of two to three days to reach the port, he said.

In addition, Vietnam's favorable investment environment and its numerous trade agreements with other countries make it an attractive partner for cooperation, Pan said.

Supply chain is a crucial factor for manufacturing and processing enterprises, and Suzhou companies are willing to work with Vietnamese counterparts to determine which parts of the production chain can be sourced from Vietnam.

If Vietnamese enterprises cannot meet certain requirements, Suzhou enterprises can cooperate with them to produce those parts and increase their capacity while improving the localization rate of products, he said.