Opportunity to Develop Supporting Industries in Hanoi

Recently, the Trade Promotion Centre of Hanoi (HTPC), under the Hanoi Department of Trade and Industry, signed a cooperation agreement with Reed Tradex Company to hold "Industrial Component & Subcontracting Vietnam 2013 (ICS Vietnam 2013) and Vietnam Manufacturing Expo (VME) from 4^th June to 9^th June 2013 at the Soviet – Vietnam Friendship Cultural Palace, Hanoi. This is a great opportunity for businesses to reach out to importers and assemblers of the global and access technological and advanced machinery, promoting Hanoi’s industry in general its supporting industry in particular.

 

At the signing ceremony, an interesting question was presented: If the competitors can catch up with Vietnam within 10 years, then where will Vietnam be? According to Mr Duangdej Yuaikwamdee, Deputy Managing Director of Reed Tradex Company, if Vietnam knows how to take full use of technology to promote the development of product quality, it can become the regional leader in the ASEAN Economic Community in the next 10 years.

 

He stressed that when the industries using foreign investment use more domestic parts, it will create more job opportunities and skill development. Looking at the potential of supporting industries in Vietnam, there are many opportunities to meet the needs of the region thanks to its competitiveness in cost, skills, professionalism, and suitable products, which will contribute to making Vietnam a production base of the region of ASEAN. At the same time, that the process of industrialization and modernization is being promoted will bring Vietnam a modern industrial country with enhanced economic potential, human resources, science and technology capacity and facility infrastructure. Therefore, it is important to “pay special attention to businesses operating in the manufacturing sector, such as mechanics, electrics, electronics and information technology, and create links between domestic producers and foreign partners, particularly partners in the ASEAN region,” stressed Mr Duangdej Yuaikwamdee.

 

Also according to Mr Duangdej Yuaikwamdee, to the superior supporting industries and electronics, automotive parts and motorcycles industry with promising future, Vietnam is now a production base for printers and copiers for all leading Japanese brands. In the next few years, Nokia will open the biggest production lines in Southeast Asia here in Vietnam, in addition to the current Samsung factory. This will promote exports activities of Vietnam.

 

However, Vietnam is facing huge competition from other countries in Southeast Asia. Specifically, at present, Myanmar is in the early stages of supporting industries and need 15-20 more years to achieve the level of development of supporting industries in Vietnam. Myanmar is still confident that it can shorten this period to 10 years thanks to the application of advanced technology and willingness to face opportunities as well as challenges.

 

Commenting on the development potential of supporting industries in Hanoi, Ms Dao Thu Vinh, Deputy Director of Hanoi Department of Industry and Trade, said that Hanoi’s supporting industry has grown rapidly in the past five years. So far, Hanoi is considered a great industrial centre of the country. Supporting industry of Hanoi has been formed as a system attracting the participation of over a thousand of businesses, including FDI ones from developed countries like Japan and Korea. Enterprises operating in supporting industries of the capital are considered the spotlight when rising and participating in the satellite systems provided for FDI, especially Japanese FDI firms.

 

However, according to Ms Vinh, in the integration phase, supporting industries of Hanoi are still at a low level. There is still a big gap in the level capacity when compared to other supporting industry’s businesses in the region. Participating in this exhibition, businesses will have the opportunity to improve the management capacity to improve productivity and product quality to meet the requirements of providing these products for large assemblers from Japan, ASEAN countries and other countries worldwide.

 

Ms Vinh encouraged Vietnamese manufacturers to participate in Vietnam ICS. This exhibition is suitable for Vietnamese manufacturers, creating opportunities for more than 30 representative manufacturers in Hanoi to improve their management skills and to learn tips of purchasing and manufacturing machinery in order to improve product quality. Also, meeting suppliers at the exhibition will provide the best opportunities for investors in the manufacturing sector, leverage resources and create better conditions for businesses operating in the field industry support.

 

The cooperation agreement signing ceremony of VME and ICS Vietnam 2013 between Hanoi Trade Promotion Centre and Reed Tradex Company is a testament to the efforts and commitment of the HTPC to ensure that the supporting industries of Vietnam in general and of Hanoi in particular may be involved in the global supply chain in the future.

 

Reportedly, under the signed agreement, HTPC committed to calling for business leaders attending this exhibition, with the hope that supporting industry of Vietnam can participate in the global supply chain in the near future.

 

Along with holding the exhibition, the Department of Industry and Trade and the Vietnam Association of Mechanics (VAMI) will host "Advanced engineering class" in this chain of events. This special event will be held before and during the exhibition. Each delegate attending both parts of the course will gain certification from the HTPC, Reed Tradex VAMI.