Samsung Vietnam completed a part of the construction for its new research and development (R&D) centre in Hanoi in May this year. ( Photo courtesy of Samsung) In particular, Apple has moved 11 factories of Taiwanese enterprises in itssupply chain to Vietnam.
Many other firms such as Foxconn, Luxshare, Pegatron, and Wistron are alsoexpanding their production facilities in Vietnam.
This information was shared at a conference on the situation and proposed tasksand solutions to remove difficulties and support production and business in thelast six months of this year, organised by the Ministry of Planning andInvestment this week.
Samsung built its largest research and development centre in Southeast Asiaworth 220 million USD in Hanoi and is also planning to continue to expandfactories in the northern provinces of Bac Ninh and Thai Nguyen.
Earlier this year, Dong Nai province granted investment licences for two 100million USD projects of a component supplier for Samsung, Hansol Electronics Vietnam(RoK).
To seize the opportunity, Do Thi Thuy Huong, Vice President of the VietnamAssociation of Supporting Industries (VASI), proposed the Government havelarge-scale selective policies to attract big foreign groups to Vietnam.
However, these policies must be accompanied by "clean" productionconditions, environmental protection and no discharge into the environment, shenoted.
Huong also recommended several issues, such as more supportive policies toimprove labour quality and authorities needing to create more favourableconditions for businesses to access credit support policies of the Government.
Previously, she said that the root cause of the shifting trends of supplychains to Vietnam largely came from China's relatively developedelectronics and information technology industry.
She explained that they had grown to more than just assembling in the globalsupply chain.
Vietnam was a country quite similar to China in electronic manufacturingactivities, both in terms of labour and geographical location, infrastructure,and logistics and would be very suitable to receive capital flows, which wasalso a technological shift.
The VASI Vice President said that, regarding the attraction of large foreigncompanies, in the early stages, when domestic enterprises were still weak, FDIshould be allowed in but must be regulated.
It was necessary to have the hand of the State not only to support foreignbusinesses but also to have an incubator to support Vietnamese businesses sothat they were capable of receiving technology and gradually mastering thetechnology to have the ability to compete and keep in domestic market, sheadded.
If enterprises were not strong enough, they could not protect their "softresources," which was their market, said Huong./.
VNA
