Foreign investment into mechanical engineering expected to surge

The MTA 2016 opens in HCM City from July 5-8 (Source: mtavietnam.com)

HCM City (VNA) – Foreign capital inflow to Vietnam, especially to the mechanical engineering industry is expected to surge in the upcoming times.

The remark was heard at a sideline press conference of the MTA 2016, an international precision engineering, machine tools and metal working exhibition and conference, opened in southern Ho Chi Minh City on July 5.

Head of the Republic of Korea International Trade Association’s Ho Chi Minh City rep. office Ko Hyun Kim said in the first six months of this year, his country was Vietnam’s biggest investor with a total investment capital of 3.99 billion USD, accounting for more than 35 percent of the total foreign investment to Vietnam.

The RoK’s enterprises in precision engineering, machine tools and metal working have actively approached the Southeast Asian market with a series of products and advanced technologies, he added.

Head of the Japan External Trade Organisation representative office in Ho Chi Minh City Takimoto Koji said Japan is one of the countries which have high experience and technology in the area and the application of Japan’s advanced products will help to enhance the development of the supporting industry in the two countries.

Several conglomerates have invested in Vietnam in the past years, however, Japan ’s investment waves will continue to flow to the country through small and medium enterprises (SMEs).

Tran Viet Dung, Deputy Director of the Vietnam Chamber of Commerce and Industry Exhibition Service Ltd acknowledged that the mechanical engineering sector is experiencing strong growth. The fast growing economy in tandem with abundant manpower will help Vietnam attract more foreign direct investment flows.

However, he also stressed that local enterprises in the area should take the initiative in investing in machinery and technology in order to improve productivity, competitiveness and the production chain in the industrial sector.-VNA