Vietnam gave priority to developing support industries because they played an important role in industrialisation and modernisation, said the Deputy Minister of Industry and Trade (MoIT), Tran Tuan Anh.

Opening four exhibitions on support industries in Ha Noi yesterday, Anh said the State had issued several policies in recent years to help makers of spare parts and encourage technological transfer between local firms and foreign partners.

The expos are the Reed Tradex Manufacturing Expo Vietnam, the fifth Vietnam-Japan Exhibition on Support Industries, the Japanese Monozukuri Technology Exhibition, and the Industrial Components and Subcontracting Vietnam.

The events would help accelerate the transfer of new technologies, know-how and the expansion of business networks, said managing director of Thailand Reed Tradex Chainarong Limpkittisin.

Difficulties in purchasing parts was one of the major challenges facing Japanese enterprises in Vietnam, said Jetro executive vice president Daisuke Hiratsuka.

A recent JETRO survey found Japanese enterprises in Vietnam had a low localisation ratio in material and industrial components compared to other Asian nations.

A low localisation ratio means that investors have to import more materials and components. This leads to high production costs in Vietnam.

Nguyen Van Suu, vice chairman of the Ha Noi People's Committee, said the expos would enable producers to find new markets. The four events will end on September 6.-VNA