Ho Chi Minh City is seeking more solutions to complete a project ondeveloping the support industry, which plays a key role in promoting thesustainable development of major industries, according to a report onthe Government website chinhphu.vn.
The municipal Departmentof Industry and Trade has recently completed Phase 1 of its project,which focuses on mechanics, electronics-communications, rubber-plastics,food processing, and textiles and garments.
FDI enterprises,especially large corporations such as Intel and Samsung, have a greatdemand for spare parts supplied by domestic businesses, according toNguyen Phuong Dong, deputy director of the Industry and TradeDepartment.
"The Department of Industry and Trade is beingproactive by connecting local businesses operating in the supportindustry with FDI enterprises, especially large ones," Dong said.
Recently, HCM City People's Committee issued Decision No.1026 on atrial construction of high-rise factory models for lease at the Sai GonHi-Tech Park, Tan Thuan-Linh Trung Export Processing Zone and Hiep PhuocIndustrial Park during the 2015-18 period.
The three- toeight-storey factory will have a total area of 10,000 sq.m – 40,000sq.m. It will be divided into small areas covering 100 sq.m, 200 sq.m,500 sq.m, 1,000 sq.m and 3,000 sq.m.
The factory will createfavourable conditions for international investors, especially for localSMEs and Japanese businesses in the support industry that want to makelong-term investments in Vietnam.
Nguyen Bach Hoang Phung,deputy head of the HCM City Export Processing and Industrial ZoneAuthority (HEPZA), said that HEPZA has urged investors to quicklyimplement the high-rise factory models with preferential policies.
The first high-rise factory is expected to start operation in August next year.
HEPZA also plans to create specialised areas for support industrybusinesses, covering a total of 200 ha at Hiep Phuoc Industrial Park andLe Minh Xuan 3 Industrial Park.
Dong said that SMEs are thekey factor in the development of the support industry. Ninety-five percent of businesses in HCM City are SMEs. However, SMEs lack capital dueto difficulties in accessing loans, and do not have enough qualifiedstaff.
As a result, they have weak competitiveness because their products are low quality and have high costs.
Japanese businesses face difficulties in acquiring materials and partsin Vietnam, according to the Japan External Trade Organisation (JETRO).
The purchase ratio for materials and components of Japanesemanufacturers in Vietnam is 33.2 percent, compared to 66.2 percent inChina, 54.8 percent in Thailand, 43.1 percent in Indonesia and 40.7percent in Malaysia.
Hirotaka Yasuzumi, executive director ofJETRO in HCM City, said the opportunities are huge for Vietnamesebusinesses to participate in supplying products for Japanese enterprisesand FDI companies.
He urged the Government and the business community to develop new policies to help the support industry.
Hiroshi Tahara, a financial specialist at the Japan FinanceCorporation, said the Japanese Government in the past had issued creditguarantee policies to help SMEs in Japan, which had faced the samechallenges as Vietnamese businesses.
Tahara said that Vietnam should conduct a survey of local SMEs and provide support soon.-VNA
The municipal Departmentof Industry and Trade has recently completed Phase 1 of its project,which focuses on mechanics, electronics-communications, rubber-plastics,food processing, and textiles and garments.
FDI enterprises,especially large corporations such as Intel and Samsung, have a greatdemand for spare parts supplied by domestic businesses, according toNguyen Phuong Dong, deputy director of the Industry and TradeDepartment.
"The Department of Industry and Trade is beingproactive by connecting local businesses operating in the supportindustry with FDI enterprises, especially large ones," Dong said.
Recently, HCM City People's Committee issued Decision No.1026 on atrial construction of high-rise factory models for lease at the Sai GonHi-Tech Park, Tan Thuan-Linh Trung Export Processing Zone and Hiep PhuocIndustrial Park during the 2015-18 period.
The three- toeight-storey factory will have a total area of 10,000 sq.m – 40,000sq.m. It will be divided into small areas covering 100 sq.m, 200 sq.m,500 sq.m, 1,000 sq.m and 3,000 sq.m.
The factory will createfavourable conditions for international investors, especially for localSMEs and Japanese businesses in the support industry that want to makelong-term investments in Vietnam.
Nguyen Bach Hoang Phung,deputy head of the HCM City Export Processing and Industrial ZoneAuthority (HEPZA), said that HEPZA has urged investors to quicklyimplement the high-rise factory models with preferential policies.
The first high-rise factory is expected to start operation in August next year.
HEPZA also plans to create specialised areas for support industrybusinesses, covering a total of 200 ha at Hiep Phuoc Industrial Park andLe Minh Xuan 3 Industrial Park.
Dong said that SMEs are thekey factor in the development of the support industry. Ninety-five percent of businesses in HCM City are SMEs. However, SMEs lack capital dueto difficulties in accessing loans, and do not have enough qualifiedstaff.
As a result, they have weak competitiveness because their products are low quality and have high costs.
Japanese businesses face difficulties in acquiring materials and partsin Vietnam, according to the Japan External Trade Organisation (JETRO).
The purchase ratio for materials and components of Japanesemanufacturers in Vietnam is 33.2 percent, compared to 66.2 percent inChina, 54.8 percent in Thailand, 43.1 percent in Indonesia and 40.7percent in Malaysia.
Hirotaka Yasuzumi, executive director ofJETRO in HCM City, said the opportunities are huge for Vietnamesebusinesses to participate in supplying products for Japanese enterprisesand FDI companies.
He urged the Government and the business community to develop new policies to help the support industry.
Hiroshi Tahara, a financial specialist at the Japan FinanceCorporation, said the Japanese Government in the past had issued creditguarantee policies to help SMEs in Japan, which had faced the samechallenges as Vietnamese businesses.
Tahara said that Vietnam should conduct a survey of local SMEs and provide support soon.-VNA
