Ho Chi Minh City is seeking to boost ties between the supportingindustry and high technology sector, as well as support the developmentof both, towards luring more foreign investment, according to theVietnam Investment Review (VIR).
The city’s Department ofIndustry and Trade, HEPZA (the industrial zone watchdog) and SaigonHi-Tech Park (SHTP) signed separate deals last week to carry out a planto accomplish this goal. SHTP, which is already home to the 1.04 billionUSD Intel chip factory, and HEPZA will join forces to take measuresunder the leadership of the city government.
The signing waspart of a workshop held by the municipal People’s Committee to call formore investment into the two sectors. Deputy Chairman of the municipalPeople’s Committee Le Manh Ha told media at the vent that the southerneconomic hub has not borne much fruit in terms of developing supportindustries serving hi-tech over the past 10 years.
Now the city’sgovernment has set aside Hiep Phuoc Industrial Park (stage 2) in Nha Bedistrict and Le Minh Xuan 3 Industrial Park in Cu Chi for supportindustry firms. In Hiep Phuoc, Vie-Pan Techno Park is currently underconstruction and once complete will be a 31 million USD industrial zonefor Japanese support industry companies primarily supplying hi-techcompanies. Vie-Pan is listed in Japan’s national strategy to supportJapanese small and medium-sized enterprises.
Vie-Pan TechnoPark’s Vice Chairman Doan Hong Tam said the park’s unique business modelof providing pre-fabricated workshops and investment procedure serviceshas gotten the attention of numerous Japanese companies.
YasuzumiHirotaka, Managing Director of the Japan External Trade Organisation’sHo Chi Minh City office, said that in order to develop supportindustries in Vietnam, the Government must support the development oflocal companies and foster technology from overseas. “If we attract onlyforeign-invested support industry companies, technology transfer willbe limited and little will be accomplished in terms of developingVietnam’s support industries.”
Hirotaka listed six main reasonsfor Vietnam’s underdeveloped support industries: “Enterprises have notbeen able to access capital, personnel training is not meeting demand,Vietnam lacks incentive policies, there isn’t a development playgroundfor companies in the same sector. Where are excellent Vietnameseenterprises? There is no big market.”
At the seminar, corporaterepresentatives said Vietnam did not have a national developmentstrategy for the support industry, and therefore its development wasslower than expected.
SHTP Management Board Chief Le Hoai Quocsaid most of its corporate tenants were using products provided byforeign suppliers, mainly from Japan, the Republic of Korea, Taiwan,Malaysia, Thailand and Singapore. At the billion dollar Intel project,the American giant divides materials into direct and indirect. Atpresent, Intel is focusing on buying only materials produced in Vietnam,but so far has only been able to source 10 percent of what it needswhile importing the rest.
“Intel is facing difficulties inseeking qualified suppliers here. Because what they want to buy areindirect materials and the number of orders isn’t stable. Thereforelocal suppliers do not want to invest in new equipment and technology toonly supply Intel. For direct materials, Intel still has no long-termplan for local orders,” Quoc added.
According to SHTP, so far Intel has disbursed 280 million USD into its Vietnam project.
The100 million USD Jabil Vietnam project, which produces computer,storage, telecom, and healthcare equipment as well as many other hi-techproducts, has disbursed 47.8 million USD thus far, whileJapanese-invested Nidec Copal Precision Vietnam has released 35.1million USD of its 100 million USD commitment.
Quoc said JabilVietnam was one of only a few cases at SHTP where a producer hadincreased its local material sourcing. The firm’s number of localsuppliers has risen from zero in 2010 to more than 200 now, supplyingmore than 10 percent of its total input.-VNA
The city’s Department ofIndustry and Trade, HEPZA (the industrial zone watchdog) and SaigonHi-Tech Park (SHTP) signed separate deals last week to carry out a planto accomplish this goal. SHTP, which is already home to the 1.04 billionUSD Intel chip factory, and HEPZA will join forces to take measuresunder the leadership of the city government.
The signing waspart of a workshop held by the municipal People’s Committee to call formore investment into the two sectors. Deputy Chairman of the municipalPeople’s Committee Le Manh Ha told media at the vent that the southerneconomic hub has not borne much fruit in terms of developing supportindustries serving hi-tech over the past 10 years.
Now the city’sgovernment has set aside Hiep Phuoc Industrial Park (stage 2) in Nha Bedistrict and Le Minh Xuan 3 Industrial Park in Cu Chi for supportindustry firms. In Hiep Phuoc, Vie-Pan Techno Park is currently underconstruction and once complete will be a 31 million USD industrial zonefor Japanese support industry companies primarily supplying hi-techcompanies. Vie-Pan is listed in Japan’s national strategy to supportJapanese small and medium-sized enterprises.
Vie-Pan TechnoPark’s Vice Chairman Doan Hong Tam said the park’s unique business modelof providing pre-fabricated workshops and investment procedure serviceshas gotten the attention of numerous Japanese companies.
YasuzumiHirotaka, Managing Director of the Japan External Trade Organisation’sHo Chi Minh City office, said that in order to develop supportindustries in Vietnam, the Government must support the development oflocal companies and foster technology from overseas. “If we attract onlyforeign-invested support industry companies, technology transfer willbe limited and little will be accomplished in terms of developingVietnam’s support industries.”
Hirotaka listed six main reasonsfor Vietnam’s underdeveloped support industries: “Enterprises have notbeen able to access capital, personnel training is not meeting demand,Vietnam lacks incentive policies, there isn’t a development playgroundfor companies in the same sector. Where are excellent Vietnameseenterprises? There is no big market.”
At the seminar, corporaterepresentatives said Vietnam did not have a national developmentstrategy for the support industry, and therefore its development wasslower than expected.
SHTP Management Board Chief Le Hoai Quocsaid most of its corporate tenants were using products provided byforeign suppliers, mainly from Japan, the Republic of Korea, Taiwan,Malaysia, Thailand and Singapore. At the billion dollar Intel project,the American giant divides materials into direct and indirect. Atpresent, Intel is focusing on buying only materials produced in Vietnam,but so far has only been able to source 10 percent of what it needswhile importing the rest.
“Intel is facing difficulties inseeking qualified suppliers here. Because what they want to buy areindirect materials and the number of orders isn’t stable. Thereforelocal suppliers do not want to invest in new equipment and technology toonly supply Intel. For direct materials, Intel still has no long-termplan for local orders,” Quoc added.
According to SHTP, so far Intel has disbursed 280 million USD into its Vietnam project.
The100 million USD Jabil Vietnam project, which produces computer,storage, telecom, and healthcare equipment as well as many other hi-techproducts, has disbursed 47.8 million USD thus far, whileJapanese-invested Nidec Copal Precision Vietnam has released 35.1million USD of its 100 million USD commitment.
Quoc said JabilVietnam was one of only a few cases at SHTP where a producer hadincreased its local material sourcing. The firm’s number of localsuppliers has risen from zero in 2010 to more than 200 now, supplyingmore than 10 percent of its total input.-VNA
