Helps needed for small and medium enterprises developing support industry
Vietnam annually has spent tens of billions of dollars to import materials and components for its industry. Therefore, support industry businesses should be supported by the State to become suppliers for domestic manufacturing firms.
The opinion was heard by the participating enterprises at the Industrial Component and Subcontracting Vietnam (ICS) exhibition 2015 held recently by Hanoi Tourism Trade Investment Promotion Center.
Survey results of Japan External Trade Organisation (JETRO) showed that Vietnam's support industry has been improved significantly in the recent years.
Soichi Yoshimura, Deputy Chairman of the JETRO said that there are about 1,500 Japanese enterprises in Vietnam, half of which are currently operating in the manufacturing sector and 33% of local companies were able to be suppliers for Japanese firms last year, contributing to attract more foreign direct investment (FDI) projects from Japan.
According to the Ministry of Planning & Investment, Vietnam has only attracted 198 Japanese FDI projects in 2010, but the number of the the country's FDI projects in Vietnam amounted to 517 projects in 2014.
The move was achieved by effective cooperation between Vietnam's support industry firms with foreign enterprises, especially Japan.
In 2018, Vietnam will eliminate 97 percent of tariffs as committed to the ASEAN goods and trade agreement which will help it reel in investment. However, Vietnamese firms will face a fierce competition with neighbouring producers offering cheaper products.
The national support industry should further enhance the capacity of local providers for foreign investors.
Discussing solutions to develop the national support industry, Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry said that the system of support industry suppliers are often divided into several levels.
It is neccessary to become support industry suppliers at the lowest level for Vietnamese enterprises, which have had the small scale, limited capability of management, finance and technology, Chairman Loc stated.
Agreeing with this idea, Katsuro Naga from the Japanese Embassy in Vietnam said that the consolidation of small and medium enterprises will promote competition in the domestic market, creating more jobs and new technologies, leading to the restructuring of the national industry.
The number of small and medium enterprises in Japan accounts for 99.7% of all businesses and create jobs for about 70% of the total workforce, especially the large Japanese firms such as Toyota, Honda and Sony also started operating from the small plant, Katsuro Naga added.
Survey results of Japan External Trade Organisation (JETRO) showed that Vietnam's support industry has been improved significantly in the recent years.
Soichi Yoshimura, Deputy Chairman of the JETRO said that there are about 1,500 Japanese enterprises in Vietnam, half of which are currently operating in the manufacturing sector and 33% of local companies were able to be suppliers for Japanese firms last year, contributing to attract more foreign direct investment (FDI) projects from Japan.
At the Industrial Component and Subcontracting Vietnam (ICS) exhibition 2015 in Hanoi.
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The move was achieved by effective cooperation between Vietnam's support industry firms with foreign enterprises, especially Japan.
In 2018, Vietnam will eliminate 97 percent of tariffs as committed to the ASEAN goods and trade agreement which will help it reel in investment. However, Vietnamese firms will face a fierce competition with neighbouring producers offering cheaper products.
The national support industry should further enhance the capacity of local providers for foreign investors.
Discussing solutions to develop the national support industry, Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry said that the system of support industry suppliers are often divided into several levels.
It is neccessary to become support industry suppliers at the lowest level for Vietnamese enterprises, which have had the small scale, limited capability of management, finance and technology, Chairman Loc stated.
Agreeing with this idea, Katsuro Naga from the Japanese Embassy in Vietnam said that the consolidation of small and medium enterprises will promote competition in the domestic market, creating more jobs and new technologies, leading to the restructuring of the national industry.
The number of small and medium enterprises in Japan accounts for 99.7% of all businesses and create jobs for about 70% of the total workforce, especially the large Japanese firms such as Toyota, Honda and Sony also started operating from the small plant, Katsuro Naga added.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
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