“BIG Opportunities for Vietnam Supporting Industry”
May 22, 2014, HCMC, Vietnam – Mr. Hirotaka Yasuzumi, Managing Director of JETRO, Ho Chi Minh Office, Mr. Nguyen Tuan, Deputy Director of Investment & Trade Promotion Centre (ITPC) and Mr. Duangdej Yuaikwarmdee Deputy Managing Director of Reed Tradex, attend a contract signing ceremony and announce the co-location of “Business Alliance for Supporting Industry 2014” together with “METALEX Vietnam 2014” and “NEPCON Vietnam 2014” to continue the support for Vietnam’s supporting industry during October 9 -11. More than 10,000 visitors are expected during the three days of the show.
Discover the right machinery and solutions for production upgrade this October
Mr. Duangdej Yuaikwarmdee, Deputy Managing Director of Reed Tradex Co., Ltd. said that currently, Vietnam is a highly attractive investment destination for international manufacturers in automotive, electronics and other supporting industries. Japan is the top Foreign Direct Investment (FDI) player in Vietnam. New Japanese companies in Vietnam are also continuing to increase their manufacturing capacities. To keep up the competitiveness as well as acquire new clients, Vietnamese manufacturers need to expand their production line as well as continuing to improve productivity in terms of quality and quantity. Finding the right partners to conduct business with reciprocal interest would also help Vietnam’s industries to become strong and profitable in the long run.
“We are standing on the threshold of change as we are moving forward to the era of ASEAN Economic Community. Both opportunities and challenges will come hand in hand to all manufacturing industrialists who wish to take advantage of these opportunities. Especially for manufacturers in the supporting industries which still have room to grow. There will be orders that you may not know how to handle today but will have to learn how so that you can take advantage of them. These changes can be exciting yet challenging. To be able to handle the changes, collaborative networks are one of the keys.
This year we are witnessing another form of collaboration as JETRO and ITPC are coming together to join their events, “Business Alliance 2014 for Supporting Industry,” with Reed Tradex events “METALEX Vietnam” and “NEPCON Vietnam.” This collaboration will benefit the growth of supporting industries tremendously. Not only Vietnamese manufacturers will discover the latest machine tools and metalworking technologies in “METALEX Vietnam 2014” and new SMT and testing technologies and equipment for electronics manufacturing in “NEPCON Vietnam 2014,” but all Vietnamese manufacturers will also meet Japanese manufacturers who are looking for industrial parts and Vietnamese suppliers of quality parts and components, all in one event. Moreover, everyone will be able to gain new knowledge and networking opportunities through seminars and activities that will be concurrently held with the shows.” said Mr. Yuaikwarmdee.
Established in Ho Chi Minh in 2000, JETRO has been working towards encouraging trade and investment between Japan and Vietnam.
“Our major targets are to support direct investment to Vietnam. In 2013 the approved FDI to Vietnam was 22.4 billion USD in which the investment from Japanese companies accounts for 26% with 500 projects. This means Japan is the largest investor in Vietnam. The investments from Japanese companies to Vietnam is still full of vigor.
On the other hand, the biggest problem when investing in Vietnam is the deficiency in supporting industries. According to JETRO’s survey in 2013 the percentage of local procurement in Vietnam for Japanese companies was an extremely low of 32% compared to 64% in China or 53% in Thailand. Over the last 10 years, JETRO has supported to strengthen the supporting industry for Vietnam through many business matching meetings and exhibitions without dramatic improvements. For that reason, a different path for supporting industry must be taken.
This year we are creating a new scheme which private companies and government related departments cooperate to work together for the development of Supporting Industry. We are aiming to identify and satisfying potential company’s needs through business matching events, seminars, personnel training and making a proposal to be raised for government policy of Supporting Industry. In order not to fall into the “Middle-income country trap”, Vietnam needs to cause a technical innovation, so we promote Technology Transfer to Vietnamese companies by furthering human resource development and by making a close relationship between Japanese companies and Vietnamese companies. We set up a big space for Business Matching. This creates opportunites for companies in the booth to find partners easily and exhibitors do not just wait for customers but they can approach potential partners and receive coordinators’ advice. It is certain that we will still arrange exhibition booths for exhibitors to display their most favorite technologies.”, said Mr. Hirotaka Yasuzumi, Managing Director of JETRO .
Therefore, the combination of business matching event and exhibition is the most effective way of promoting the Supporting Industry of Vietnam with many participants of excellent Vietnamese companies involved in this event.
Mr. Nguyen Tuan, Deputy Director of Investment and Trade Promotion Center (ITPC) said, “ITPC is an agency belonging to the Ho Chi Minh People’s Committee who is in-charge of promoting trade and investment. Our mission and vision are to promote the growth of enterprises in Ho Chi Minh City and foreign investors. With a collaborative network of more than 20 international partners BSO, we offer services to help enterprises export, develop business capabilities, find overseas partners, penetrating new markets, and support foreign investors to develop their projects in Vietnam. Our activity is to mount Vietnam enterprises with foreign entrepreneurs to develop trade in goods and services, providing a one-stop service for foreign investors to choose investment projects effectively, obtaining legal support investment, providing essential information on trade and direct investment or online; solve problems and resolve mediate problems related to trade and investment in Vietnam through direct dialogue and networking between online businesses and government agencies, consult the Ho Chi Minh People’s Committee of policies and measures to improve investment environment, business and enhance competitiveness. Also to organize Vietnam business delegations to participate in international trade fairs or conduct new market surveys, workshops with topics related to trade and investment in Vietnam, organizing training courses, corporate training for business management, world economic integration, procedures and business rules. This is a good opportunity for parties to seek new customers or suppliers. Field exhibitions include components and accessories, 2-wheel and 4-wheel, electric, electronic, mechanical parts, plastics and metal processing (casting, forging, plastic injection , molds, sheet metal, plastics processing, plating, etc.), packaging materials, and other accessories.”
This exhibition will bring the following benefits:
- The Vietnam company Exhibitors will have the opportunity to meet new customers. Especially Japanese companies investing to expand production facilities of them in Vietnam.
To choose the right products supporting industry development, priority is to note factors such as industry needs, support of each of the products and projects expected to attract FDI in the country I, the level of technology, production locations final product; predicted shift from industrial countries to support industry development support such as Thailand, Japan to Vietnam in the coming years.
To encourage the formation of industrial clusters producing components, spare parts, auxiliary materials for the industry, Construction IPs & EPZ centralized targets including many private enterprises could become suppliers for FDI can be seen as a positive direction and practical to develop industry supporting industries in Vietnam in the coming years. Industrial policies to promote support not merely local nature which have driven business support systems involved in providing investors some goals. This is also a solution to create an attractive environment to attract more FDI in the future.
“METALEX Vietnam 2014” , 9-11 October 2014 at Saigon Exhibition & Convention Center (SECC) Vietnam’s International Exhibition on Machine Tools & Metalworking Solutions for Production Upgrade, featuring 500 brands from 25 countries, will be the under-one-roof meeting center of the manufacturing community which opens doors for Vietnamese industrialists to discover how they can heighten product quality, productivity, as well as improve production lines with new machine tools, metalworking technologies, and electronics manufacturing technologies
“NEPCON Vietnam 2014” Vietnam’s Only Exhibition on SMT & Testing Technologies, Equipment, and Supporting Industries for Electronics Manufacturing, will focus on the technology for electronics assembly, measurement and testing.
For “Business Alliance for Supporting Industry 2014” over 100 Japanese parts buyers manufacturers will exhibit parts and accessories that they want to buy or seek subcontractors in Vietnam as well as exhibiting cool technology from Japan that could help increase efficiency for the local manufacturers.
Key Highlights Onsite are as follows:
- The Stars of Technology Pavilion: A special showcase the high-tech machinery, technologies and live robot demonstrations from worlds’ brands for your visitor’s first-hand experiences.
“METALEX Vietnam 2014” and “NEPCON Vietnam 2014” has strong support from: Ministry of Science & Technology (MST), Ministry of Planning and Investment (MPI), Ministry of Information and Communications, Ministry of Industry and Trade (MIT), Vietnam Electro – Technical Industry Association (VELINA), Vietnam Steel Association (VSA), Vietnam Welding Society – Southern Office (VWS), Ho Chi Minh City Association of Mechanical Engineering (HAME), Vietnam-German Technology Transfer and Training Center (HWC), Association of Electronics Industries In Singapore (AEIS), Singapore Manufacturing’ Federation (SMF), BOI – Unit For Industrial Linkage Development (BUILD), Thai Subcontracting Promotion Association, The Federation of Thai Industries (FTI), Taiwan Association of Machinery Industry (TAMI) etc. (end)