More Efforts Needed in Developing Vietnam’s Supporting Industries towards AEC

 

Mr Duangdej Yuaikwamdee, Deputy Managing Director of Reed Tradex Co., Ltd remarked that the active participation of industrial leaders and high-ranking officials affirmed that Vietnam’s supporting industry would continue to grow and gain more recognition in the international market.

 

“Transfers of machineries, technologies and knowledge among ASEAN countries will be easier thanks to AEC by 2015. The involvement will help Vietnam speed up industry and trade development; however, on the other hand, the country will also have to improve to catch up with increasingly fierce competition from other ASEAN countries. I believe that the conferences, forums, and exhibitions Reed Tradex held in recent years will strongly contribute to Vietnam’s industrial production improvement and necessary preparations for the coming challenges,” said Mr Duangdej Yuaikwamdee.

 

Dr Vu Tien Loc, President of Vietnam Chamber of Commerce and Industry (VCCI), stated that the 11th National Congress of the Communist Party of Vietnam worked out the Socio-economic Development Strategy 2011-2020 with the main target of developing Vietnam into a modern industrial country by 2020. “In fact, the national economy’s development requires a total restructuring, phasing out labour-intensive machines into participating more strongly and deeply in supply chains and value chains, and moving from wide to deep development. On that basis, we will improve the quality of the economy, and save capital investment with effective sustainable development. We strongly believe in the potential growth of supporting industries and the positive effects of it on sustainable development,” noted Dr. Loc.

 

“According to JETRO’s survey conducted in October 2011, the percentage of parts and components purchase in Vietnam was only 28.7 percent, less than those in other countries in ASEAN (e.g Thailand: 53 percent, Indonesia: 41 percent and Malaysia: 39.3 percent) and China: 59.7 percent. As a result, Japanese manufacturers in Vietnam have to import necessary parts and components from other countries such as Japan, Thailand, and China. This reduces not only its competitive capability of supplying products to assemblers, but also decreases the trade profit of Vietnam,” stressed Mr Yuichi Bamba, Deputy Chief Representative of JETRO Hanoi Office. “Nevertheless, we do believe that with the great efforts of companies themselves and support from the Government, supporting industry will be soon oriented and strengthened in Vietnam in the time ahead.” 

 

The business mission comprised of two main functions, including the Forum themed “Challenges and Opportunities in Developing Vietnam’s Supporting Industries towards AEC”, and factory visits.

 

The event is part of Reed Tradex’s commitments on bringing knowledge and opportunities to Vietnamese industrialists to develop their businesses, and promoting the coming exhibitions of Metalex Vietnam 2012, NEPCON Vietnam 2012, the 5th Vietnam-Japan Exhibition on Supporting Industries, and Vietnam Manufacturing Expo 2013. The exhibitions are widely recognised as a comprehensive display of technologies, machinery and seminars for manufacturing and supporting industries in Ho Chi Minh City and Hanoi.

 

The fast growing economy of Vietnam makes it a magnet for investors in ASEAN and a potential site for business development. And there is no better trade platform to invest than “Metalex Vietnam 2012 – Vietnam’s Most Comprehensive Machine Tools and Metalworking Technology Exhibition.” NEPCON Vietnam 2012, the acclaimed platform for electronics assembly industry in Vietnam, is expected to welcome over 10,000 manufacturers to come and conduct business and source new technologies and machineries from up to 200 leading brands from 25 countries. The two exhibitions will be located with the 5th Vietnam-Japan Exhibition on Supporting Industries on October 4-6, 2012 at Saigon Exhibition and Convention Centre in Ho Chi Minh City.