Vietnam’s shortage of competitive supporting industries is hurting its industrial base, Vietnam News Agency cited business analysts as saying.
Foreign and local companies have difficulties in finding suppliers of components for their production.
Five years ago, a representative of Fujitsu Company contacted 64 local companies to buy a certain type of screw for his company, but was unable to find them.
“Each time our company manufactures a line of new high-quality cars we have to look for foreign suppliers of support products, even simple things like seats and protective cloth,” said Nguyen Xuan Dien, a marketing official with the Saigon Transportation Mechanical Co (Samco).
Phan Phat Nang, an engineer and director of Phana, said that local manufacturers of the electric motors for Plana’s automatic beds could not be found.
“Compared with a few years ago, the support industry has grown but the quality of products is still poor and local companies produce only simple products,” Nang added.
The textile and garment industry, for example, has to import 70 to 80 per cent of materials.
In addition, the shipbuilding industry mostly assembles ships, while the design, materials, engines and other parts have to be imported.
The auto industry is the same although it enjoys many tax incentives. It has the weakest support industry with localized rate of products only 5 per cent-10 per cent.
Last July, the Ministry of Industry and Trade approved a plan to develop the supporting industries until 2010 and a long-term “vision” until 2020.
Some experts said the Government needed to beef up its help to the support industry and encourage more technology transfer. It should issue new technical standards for each industry and each kind of product also, they said. (VNA)
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