Sun. Apr 21st, 2024

Local support industry needs to develop

HCM CITY (VNS)— The Government has been urged to provide incentives to spur development of the support industry in a bid to lure more foreign investment.

The call was made at the sixth forum on Viet Nam’s support industry, themed “Technological trend and key to success,” held in HCM City on Wednesday.

Director of the HCM City-based Investment and Trade Promotion Center (ITPC) Pho Nam Phuong said many foreign manufacturing businesses failed to find eligible local component suppliers.

There were few qualified suppliers who could ensure efficient management, stable operation and compliance with legal regulations on safety standards during the manufacturing process, Phuong said.

Intel Viet Nam Company purchasing manager Nguyen Thanh Tam referred to the fact local suppliers had so far secured only low-value, short-term contracts which had not yet earned them credibility with customers, especially foreign groups.

JETRO executive director Hirotaka Yasuzumi compared Viet Nam’s locally made component supply of 28 per cent for Japanese firms in 2012 with Thailand’s 53 per cent and China’s 61 per cent rate.

From this, Japan planned to build a policy to aid Viet Nam’s support industry, focusing on trade exchanges rather than exhibition organisation, Yasuzumi said.

There was an increasing possibility of Japanese companies investing in Indochina, including Viet Nam, Yasuzumi said. He suggested Viet Nam seize the opportunity and develop its support industry to draw in more foreign investors.

The event was co-hosted by Thailand’s Reed Tradex Co, JETRO and ITPC. — VNS

By vivian