Business
Domestic firms advised to increase spare parts supply for FDI producers
Vietnam should increase supply of spare parts for foreign direct investment (FDI) producers, thus increasing added value and GDP, Chairman of the Vietnam Electronics Industries Association Luu Hoang Long suggested at the recent conference on connecting supply chain for support products held in Hanoi.
At the conference on connecting supply chain for support products held in Hanoi last week, Chairman of Vietnam Association of Foreign Invested Enterprises Nguyen Mai said Vietnamese firms have a big opportunity to enter the global value chain with several investors entering the country.
According to Chairman Nguyen Mai, some international big groups such as Samsung, Intel, LG, Canon and Microsoft – Nokia expected to see Vietnamese companies joining their production chain and becoming their vendors. For example, Samsung Electronics Vietnam wanted to cooperate with domestic enterprises to provide spare parts for their production.
As FDI inflows into the country has been increasing, demand for support industry development in Vietnam has been huge, he added.
During the first 10 months of this year, statistics of the Foreign Investment Agency pointed out that the total capital of FDI invested in Vietnam reached 19.2 billion USD, posting year-on-year 40% increase.
He asked Vietnamese companies to be confident while investing in modern technologies and taking advantage of the government's preferential policies.
Speaking at the conference, Director of Heavy Industry Department under the Ministry of Industry and TradeTruong Thanh Hoai, said the most difficulties for Vietnamese businesses in cooperation with global groups in the support industry was with regard to limited capacity and technology with low competitiveness and dependency on imported material.
Most of the local firms have produced simple products with low technology while big groups required three criteria of stable quantity, on-time delivery and suitable prices to join into their production chain.
According to Chairman of the Vietnam Electronics Industries Association Luu Hoang Long, Vietnam's electronics industry has low added value despite increasing export turnover in the past few years.
The sector's exports have surpassed that of crude oil since 2012, becoming Vietnam's key export staples.
Long suggested that Vietnamese enterprises should increase supply of spare parts for FDI producers, thus increasing added value and GDP.
According to Chairman Nguyen Mai, some international big groups such as Samsung, Intel, LG, Canon and Microsoft – Nokia expected to see Vietnamese companies joining their production chain and becoming their vendors. For example, Samsung Electronics Vietnam wanted to cooperate with domestic enterprises to provide spare parts for their production.
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During the first 10 months of this year, statistics of the Foreign Investment Agency pointed out that the total capital of FDI invested in Vietnam reached 19.2 billion USD, posting year-on-year 40% increase.
He asked Vietnamese companies to be confident while investing in modern technologies and taking advantage of the government's preferential policies.
Speaking at the conference, Director of Heavy Industry Department under the Ministry of Industry and TradeTruong Thanh Hoai, said the most difficulties for Vietnamese businesses in cooperation with global groups in the support industry was with regard to limited capacity and technology with low competitiveness and dependency on imported material.
Most of the local firms have produced simple products with low technology while big groups required three criteria of stable quantity, on-time delivery and suitable prices to join into their production chain.
According to Chairman of the Vietnam Electronics Industries Association Luu Hoang Long, Vietnam's electronics industry has low added value despite increasing export turnover in the past few years.
The sector's exports have surpassed that of crude oil since 2012, becoming Vietnam's key export staples.
Long suggested that Vietnamese enterprises should increase supply of spare parts for FDI producers, thus increasing added value and GDP.
