Advantages for breakthroughs of support industries

16:05 | 01/10/2014 Industry

(VEN) - Foreign investors are paying greater attention to Vietnam’s support industries because of their potential in terms of market opportunities and labor costs. This will surely give Vietnamese enterprises more opportunities to make approaches, learn and cooperate to develop high technology and integrate more deeply into the regional and global production value chains.

Vietnam Economic News’ Hung Cuong talked with Deputy Director of the Hanoi Department of Industry and Trade Dao Thu Vinh about the issue.

What are your evaluations of the foreign investors’ interest in Vietnam’s support industries at the moment?

The advantages in terms of market opportunities and labor costs thanks to preferential treatments from the government are good conditions to attract investors from Japan, the Republic of Korea, Thailand and Singapore to Vietnam. The influx of giant corporations like Samsung, LG, Intel, Foxconn and Nokia have made Vietnam more important in the supply chain of electronic and mobile phone accessories in particular in the region and the world. Big investors are bringing with them investment projects into Vietnam and creating more opportunities for producers in support industries.

Japan is one of the countries that have largest investment in this field in Vietnam. In reality, Japanese enterprises have been very active in providing consultancy, training and technological transfers to Vietnamese support industry enterprises.

So far the Vietnamese enterprises have only met one part of their big partners’ demand like Samsung or Nokia and obviously the partners want them to meet more of their demand to reduce import costs and increase business efficiency. Therefore, there is still much room for the Vietnamese enterprises to make progresses and grow in this field.

Can you tell us the orientation for the development of Hanoi’s support industries in the coming time?

In the national strategy as well as the city’s plan for the development of industry sector in the 2011-2015 period and later, support industries have a very important role and are given top priority.

Hanoi’s industry and trade sector will cooperate closely with departments of industry and trade of cities and provinces in the northern region to allocate human resources and produce support industry products focusing on those with high competitiveness.

In addition, the Hanoi People's Committee will continue to encourage the annual trade promotion activities in the engineering industry to create a playing field for domestic and international producers and businesses for a further development of the city’s support industry.

What do exhibitions like the Vietnam Manufacturing Expo and the exhibition on Vietnam’s support industry products mean to the development of Vietnam’s industry sector?

Through such exhibitions, the Vietnamese manufacturers and businesses will have more opportunities to learn from each other. After participating in many trade promotion activities like trade fairs held in Hanoi, Ho Chi Minh City and abroad, we realize that the capabilities of enterprises working in Vietnam’s support industry have gradually improved. They have been more confident in approaching and doing business with foreign enterprises to produce support industry products.

We hope these activities will create positive effects as getting in business contacts will help the Vietnamese enterprises be more brave in making decisions regarding investment, market expansion and trade promotion activities./.