Vietnam, promising land for support industries

14:46 | 06/04/2016 Industry

(VEN) - The prospects for support industries in Vietnam are bright and the Reed Tradex Company will prepare a comprehensive development plan for the future, said Duangdej Yuaikwarmdee, Deputy Managing Director and CEO of the Reed Tradex Company in Vietnam, in an interview with Vietnam Economic News’ Nguyen Huong.

Vietnam, promising land for support industries

A corner of the Vietnam Manufacturing Expo 2015

How do you evaluate the development of support industries in ​​Vietnam and the impact of free trade agreements that Vietnam has signed on support industries?

The domestic industrial development has contributed significantly to the rapid growth of national economy. For example, Vietnam has made fairly quick progress compared to other countries in the region in manufacturing automotive components. After joining the ASEAN Community and the Trans-Pacific Partnership (TPP) Agreement, Vietnam has recorded more advantages in penetrating potential markets including Japan, the US, Thailand and the Philippines. Meanwhile, Japanese investors are increasing their presence in Vietnam.

Manufacturing molds is predicted to grow strongly, creating a premise for other industries in Vietnam to develop. In addition, foreign companies currently operating in Vietnam often outsource important components to foreign partners, so if they partner with domestic producers they may effectively cut production costs while shortening delivery time, then increase the rate of domestic procurement is essential for these companies. This provides domestic support industries a good development opportunity.

Vietnam marked a milestone on the international arena this year through participating in the ASEAN Community and TPP Agreement. According to the Bloomberg News agency, Vietnam ranks second in the list of top-ten global economically developing countries, which provides the country opportunities to attract new investment to develop as well as certain challenges, especially competitiveness to be able to develop comprehensively, rather than a temporary breakthrough.

The self-supply ability is regarded as key advantage in a global competitive environment. A number of world-class manufacturers currently operating in Vietnam have struggled to increase the rate of local content, for example, Samsung Electronics achieved a 10 percent rate of local content and Toyota Motor recorded 19-37 percent rates depending on types of product. However, increasing the rate of local content is a had nut to crack and international investors have to import a large number of components and spare-parts to cover the shortage. This suggests domestic enterprises update industrial development trends, acquire new and advanced production technologies, improve work skills, consolidate infrastructure and intensively exchange business and trading experiences with partners to be able to secure a sustainable competitive position in the region.

What has the Reed Tradex Company done to support industrial manufacturers in Vietnam to seize new opportunities?

The company has organized exhibitions and fairs on technology and related equipment, contributing to the domestic industrial development. In an effort to promote the development of support industries in Vietnam, the company has scheduled to organize the Vietnam Manufacturing Expo 2016 from April 6-8, 2016 at the International Center for Exhibition (I.C.E), 91 Tran Hung Dao Street in Hanoi, with a focus on plastics manufacturing and mold and die making in service of some key industries including electronics and motorcycle spare-part and component manufacturing. The expo will also act as a trading hub for spare-part manufacturers, engineers, and managers.

Moreover, the Sheet Metalex Vietnam 2016 will be held for the first time at the same venue for the Vietnam Manufacturing Expo 2016. This is the only exhibition in Vietnam on metal sheet processing machinery and technologies. The two exhibitions are expected to provide industrialists an interactive platform to discover new technologies, upgrade manufacturing readiness levels, collect new knowledge and ideas, expand business and enhance competitiveness to be ready to receive investment flows as soon as the TPP Agreement takes effect.

What about some highlights of this year’s expo?

The Vietnam Manufacturing Expo 2016 will feature more than 400 brands contributed by world leading support industrialists, a 20 percent increase over the previous event, and attract over 10,000 quality buyers of automotive, electrical, electronic, constructive, plastic and consumer products, machinery, raw materials, chemicals, instrumentation, spare-parts and accessories. In addition, participants in the expo may seize other opportunities brought about by increasing integration.

The Vietnam Manufacturing Expo 2015 which attracted 270 businesses and more than 900 inpiduals was evaluated as practical and efficient.

 

Nguyen Huong

Theo ven.vn