With high economic growth rates and strong commitments in joining important free trade agreements (FTAs) with the largest trading partners in the world, including Vietnam-EU FTAs, Asean Economic Community (AEC), Trans-Pacific Partnership (TPP), Vietnam-Japan, Vietnam-Korea, and others, Vietnam is still considered attractive destination for foreign companies to set up production facilities. The idea is shared by Mr. Lighter Chen, General Director of Kenmec Vietnam, in an interview with Vietnam Business Forum. Thu Ha reports.
Can you briefly introduce main activities and products of Kenmec Group?
Kenmec Group is a multi-national investment group leading in 3 main fields including automation, electronics and clean energy, with the headquarter in Taiwan, and the factories in China, Vietnam, Malaysia. After 40 years of development, Kenmec Group keeps promoting brand in the global market by exporting our products to Asia, Europe, America and Australia.
We are operating two companies in Vietnam, including Kenmec Vietnam/ Vietnergy Tech Co., Ltd.Kenmec is a professional automation equipment and water heater manufacturer. Since Vietnam might still be the country with the highest economic growth for next decades, and many companies consider it an opportunity to establish their production facilities in Vietnam for cost reduction purpose and aiming the potential domestic market. As a system provider, Kenmec can offer total automation solutions for factories to make the production operation efficiently. We can also assist existing Vietnamese companies to upgrade the equipment and system integration. Besides, Kenmec also produce high end solar water heaters and electric water heaters for customers.
Vietnergy focuses on manufacturing solar cells with 400MW of the cell capacity currerntly and expected to reach 800MW by the end of 2016. As part of the solar value chain, we see ourselves as a pioneer to bring in the new technology. We hope we can not only create more value for the local Government but also educate more engineers and professional managers through working experience. We believe that a corporation such as Vietnergy can facilitate the development of the local community surrounding.
What are your comments on the development of Vietnam’s industrial/production sectors in the coming time?
We believe the industrial/production development in Vietnam will be very prosperous in the coming time. However, the infrastructure in Vietnam still need to be advanced, like stable quality and supply of electricity, so that high-tech industry would rooted in Vietnam.
Vietnam has committed to join important free trade agreements (FTAs) with the largest trading partners in the world such as Vietnam-EU FTAs, Asean Economic Community, TPP, Vietnam-Japan, Vietnam-Korean, and others. How do you think about opportunities and challenges for Vietnam in the coming time, and for Kenmec in particular?
In the eyes of foreign investors, we see lots of opportunities for Vietnam. The country will be very attractive for foreign investors, resulting in more new factories and more demands for automation. Economic policies will be announced more transparently and investors are more confident to invest more money and energy for long-term business strategies in Vietnam. In the coming time, the friendly investment environment can facilitate a complete industrial value chain for various industries. In addition, an open market will provide a perfect training environment for employees to become professional in specific fields.
However, Vietnam will also have to face many challenges such as fierce competition from FTA partners, more investment required in dealing with the fierce competition, the Government’s limited support to local corporations to explore foreign markets compared to other countries and territories such as Japan, Korea, and Taiwan (China), and the increasingly heated competition in labor market.
What are your recommendations to the Vietnamese Government to further facilitate performance of FDI companies in Vietnam?
Vietnam needs to improve the stability and quality of its electricity supply network, to build up a model of cooperative education, to provide best employment agency for employers and employees, to hold an orientation for newly emerged industries, to clearly and regularly explain new policies, regulations and laws, and to offer more tax incentives.
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