Experts warn that investing in emerging industry trends can lead to "bitter consequences"

Some experts warn that supporting industry enterprises investing in emerging technology industries may suffer "bitter fruit" if they do not determine a clear direction.

This issue was warned by some experts at the workshop "Readiness of supporting industries in the supply chain of emerging technology industries" held on August 28 in Ho Chi Minh City.

At the workshop, businesses and experts all agreed that emerging technology industries such as microchips, semiconductors, high technology, etc. are experiencing a wave of investment shifting to Vietnam. This is also an opportunity for supporting industry businesses to take advantage of the opportunity to provide products to technology “eagles”.

Experts and businesses discuss investment opportunities for supporting industries in the supply chain of emerging technology industries. Photo: Le Quan

Dr. Pham Sy Thanh, Director of the China Center for Economic and Strategic Studies (CESS), commented that Vietnam is facing a "unique" opportunity to attract investment in emerging industries such as microchips and semiconductors.

The opportunities for businesses in the supporting industry are huge, but businesses need to determine their goals for participating in the semiconductor industry at which stage and at what time because this is a rather unique industry.

Mr. Thanh warned that if you do not clearly define your direction and goals and invest according to trends, if the market declines a few years later, your business will fail.

The story of the shipbuilding industry more than 10 years ago also developed "hotly", then the shipping industry declined, and businesses providing supporting industries for the shipbuilding industry also suffered losses.

"Businesses need to consider carefully and avoid investing according to world trends," Mr. Thanh warned.

The conference was attended by 22 FDI enterprises looking for partners to supply supporting industrial products. However, the number of Vietnamese enterprises meeting the needs of FDI partners is quite modest.

Speaking to reporters of the Investment Electronic Newspaper - Baodautu.vn , Mr. Paul Tran, General Director of Meggit Vietnam Co., Ltd. - a company specializing in manufacturing transformers and control equipment for the aviation industry, said that currently there are only 3 Vietnamese enterprises out of a total of 400 enterprises providing auxiliary products for Meggit.

The number of Vietnamese enterprises is still too small, even though many Vietnamese mechanical enterprises have invested in modern machinery and equipment, they still cannot meet the requirements of their partners.

According to Mr. Paul Tran, to become ancillary product suppliers for aircraft manufacturers, Vietnamese enterprises need to demonstrate their capacity by meeting international standards.

And especially, businesses need to pay attention to transparency in business in black and white, not saying that it is their secret. For foreign businesses, when there is no transparency, it is very difficult to cooperate.

“With its role, Meggit is ready to support Vietnamese supporting enterprises to participate in the aviation industry supply chain,” affirmed Mr. Paul Tran.

He also recommended that supporting industry enterprises need to grasp market development trends to have the right direction to be competitive enough with foreign enterprises when participating in the global supply chain.

Source: https://baodautu.vn/chuyen-gia-canh-bao-dau-tu-theo-trao-luu-nganh-moi-noi-co-the-nhan-trai-dang-d223572.html