Vietnam still attracts investors

16:51 | 24/06/2015 Investment

(VEN) - In a talk with Vietnam Economic News’ Nguyen Huong, SMC Pneumatics Vietnam General Director Gerald Ho said Vietnam would remain an attractive destination for investors in the next five years, especially when the ASEAN Economic Community (AEC) is established.

Vietnam still  attracts investors

AEC will be established later this year. What do you think of the attraction of the Vietnamese market in the field of support industries?

Vietnamese support industries grew impressively in recent years. Statistics from the Ministry of Planning and Investment show that in the first five months of this year, Vietnam disbursed US$4.95 billion of foreign direct investment (FDI), a rise of 7.6 percent compared with the same period last year, in 16 fields, mostly in processing and manufacturing industries (about US$3.5 billion).

The establishment of AEC later this year will make the markets of ASEAN countries more attractive. AEC will create a market of great potential with about 600 million consumers. The circulation of goods among AEC member countries will be tax-free by 2018. In the context of growing labor costs and other investment expenses in China, investors tend to move their manufacturing facilities to other countries, and ASEAN will be their first choice. With advantages such as a large, hardworking and eager-to-learn workforce, and low labor costs, Vietnam will remain a very attractive destination for investors.

What is the role of automation in industrial development? Could you briefly introduce SMC Pneumatics’ operations in Vietnam?

Automation is considered as a sector in the era of industrial development. Automation and cybernetic techniques have shown their important role since industrial plants were formed.

Automation is crucial to industrial development in Vietnam. Aware of this, SMC Pneumatics came to Vietnam in 2008 and opened its representative offices in Hanoi and Ho Chi Minh City. SMC Pneumatics Vietnam was officially established in 2011 and has become a leading provider of compressed air products in Vietnam. We have expanded our distribution network by opening sales offices in Ho Chi Minh City, Can Tho, Hanoi, Hai Duong, and Hai Phong.

Could you share the company’s plan for the time to come?

SMC is one of the most famous Japanese brands for compressed air appliances with a large global market share and broad presence in Vietnam, the Philippines and Malaysia. To make the most of opportunities from AEC, SMC plans to expand its operations in ASEAN. We will expand our customer network through competitive prices and quality service.

In Vietnam, we will open a new representative office in Da Nang and build a 2.26ha factory in the Long Duc Industrial Park of Dong Nai Province to manufacture compressed air products for export and domestic sale.

SMC Pneumatics Vietnam will participate in Vietnam Manufacturing Expo 2015 in Hanoi this September. What do you expect from this event?

This is a leading exhibition in the field of machine tools and molding, gathering more than 200 technology providers from 20 countries. SMC Pneumatics will bring to Vietnam Manufacturing Expo 2015 energy efficient products, power transmission equipment, and refrigeration products. We hope the exhibition will bring us opportunities to attract more customers.

Nguyen Huong