The management board of Saigon Hi-Tech Park has said that they will raise localisation rate to 25 percent in products made by Foreign Direct Investment (FDI) enterprises in the park this year, the Saigon Giai Phong daily reported.

The park has also set a target to increase the rate to 40 percent by 2020.

At present, the park’s export turnover by FDI companies reaches billions of US dollars every year. However the localisation rate in their products accounts for only 20 percent, the rest 80 percent materials have been imported.

Of these, mechanical engineering field has to import most components with the annually total import value approximating 30 billion USD.

Electricity and electronics field has a bit higher localisation rate of 20-30 percent. Still, local businesses have just supplied low value materials such as packing, machine frames and shells.

The localisation rate is very low in hi-tech products. Most materials and components have been imported resulting in low added value of the products of about 15-17 percent.

The park’s management board said they will promote activities to supply high quality human resources, assist businesses in technology transfer, create stable business environment and policies, and help bring together Vietnamese and FDI firms.

For higher localisation rate, the Government should give businesses with assistances in taxes, land rent and technical infrastructures, and credit incentives, while local businesses need to take the initiative in raising the rate, according to the park's management board.-VNA