Although Vietnam's supporting industry is a key industry, it is still small. Attracting FDI capital into this industry to develop local production is a good proposal.
Small in size, weak in capacity
Vietnam Association of Supporting Industries Information, manufacturing industry enterprises are mostly small in scale so the output is not large, export turnover only reaches about 1 billion USD. Currently, the industry has exported directly to some large markets such as North America, Canada, European countries, Southeast Asian countries, Japan, Korea, and indirectly exported through customers or FDI companies in Vietnam.
Business industrial support Vietnam to be able to export many types of products, such as: Products related to mechanics, electricity, electronics, rubber plastic, automation... According to Ms. Truong Thi Chi Binh - Vice President of the Vietnam Association of Supporting Industries, the best export products today are motorbike and bicycle components, some car components, electricity, electronics, products related to electrical cabinets, automation systems; components related to rubber plastic, even difficult products such as fan components, wind turbines. In particular, wire harnesses are Vietnam's strong products...
Although the export products are quite diverse, according to Ms. Binh, the most difficult point at present is related to the requirements for finished products, that is, Vietnamese enterprises mainly produce separate components while the requirements of the world market must be complete component assemblies or finished products. Along with that is the price competition with similar products from China.
With the trend of green production, using recycled materials, the difficulty of the supporting industry is that it is very difficult to find recycled input materials in the domestic market.
Regarding the Middle East market, the representative of the Vietnam Supporting Industry Association emphasized that it is a new market in the mechanical engineering sector, very attractive, with good prices and low requirements. The Association plans to attend this specialized fair to learn about the market and cooperation opportunities. " With this market, the only concern is payment. In case businesses encounter difficulties or problems, we request the Vietnam Trade Office in the local market to support and resolve them ," Ms. Binh suggested.
Regarding mechanical products, Mr. Nguyen Chi Sang - Chairman of the Vietnam Association of Mechanical Enterprises - also expressed that the industry's products are exported but in very small quantities.
In the past, the Vietnam Trade Office abroad has supported introducing customers to domestic mechanical enterprises, but the success rate is not high. " I think that to export mechanical products on a large scale like China, Korea and some other countries, we must build the strength of Vietnamese industry. Then, the Trade Office focuses on promoting that product to create an effect ," Mr. Sang expressed.
Attracting FDI capital for on-site production and export
Supporting industry is a key industry that attracts many support policies from the State. Vietnamese Trade Offices abroad always pay attention to finding technology partners to link with Vietnamese enterprises and produce and manufacture products with high demand.
Ms. Tran Thu Quynh - Vietnam Trade Office in Canada - said that the Trade Office here has always strived to promote the connection of supply chains and production chains between the two countries to maximize the effectiveness of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Over the years, the Trade Office has organized dozens of conferences to disseminate ways to coordinate the exploitation of the agreement as well as conferences to disseminate market information and thereby attracted great interest from Canadian businesses in Vietnam to seek business opportunities.
“In 2024, a delegation of nearly 200 businesses entered Vietnam to seek business opportunities. In the near future, on November 21-23, 2024, the Trade Office will continue to coordinate with the Asia Pacific Foundation to organize for 25 Canadian technology businesses in the fields of food, energy, biomedicine and precision engineering to enter Vietnam. We hope that domestic businesses interested in the Canadian market will participate directly to connect ,” Ms. Quynh informed.
In addition, the Trade Office is also working to promote the formation of a startup ecosystem between technology enterprises of the two countries, especially in the fields of green, clean technology and circular production. This is also an effort to promote not only the export of goods but also the export of services, bringing Vietnamese inventions and technologies to the world.
Expressing a different view on developing Vietnam's supporting industry, Ms. Nguyen Thi Hoang Thuy - Vietnam Trade Office in Sweden - said that we should focus on approaching large corporations that are capable of investing in high-quality industries serving exports. These corporations have a global distribution network. If we invest in production in Vietnam and then export back to their distribution system, we will not only increase the consumption of local raw materials, increase export turnover to Nordic countries but also increase the export of Vietnamese products to other countries.
“ A number of large industrial corporations from Sweden and Denmark are very interested and are exploring the possibility of investing and cooperating with Vietnamese enterprises in providing products for automobiles. Therefore, I still suggest that we attract investment from these enterprises to Vietnam, ” Ms. Thuy once again emphasized.
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