Electronics components are manufactured at a Japanese-invested Canon factory in Pho Noi A Industrial Zone in the northern province of Hung Yen. (Source: VNA) HCM City (VNS/VNA) - Businesses in support industries need tofurther improve their functioning and establish close ties with each other andofficial agencies to enter multinational supply chains, delegates told a forumin HCM City on August 23.
Dinh Thi Bao Linh, deputy director of the Vietnam Industry and TradeInformation Centre, said supporting industry, which refers to makingaccessories, components and others used in manufacturing, has received specialattention from the Government since it is the foundation for development ofmany other industries.
Yet the rate of locally sourced parts remains modest, she said.
Do Thi Thuy Huong, a member of the executive board of the Vietnam ElectronicIndustries Association (VEIA), said the electronics industry has developedstrongly in recent years with exports rising every year.
The development of the sector is mainly thanks to the large investments made bymultinational companies, especially from the Republic of Korea and Japan, inthe production of both final products and components, she said.
Local firms have a small market share, she said.
Le Nguyen Duy Oanh, deputy director of the HCM City Centre for SupportingIndustries Development, spoke about the city’s efforts to back supportindustries, including programmes to connect local suppliers with foreign-ownedand local manufacturers and foreign partners.
“Samsung hopes to have 50 Vietnamese suppliers by 2020, so local firms shouldlink up and standardise their production process to participate as the Koreancompany’s vendors,” she said.
Nguyen Duc Minh, director of Viettronics Phu Tho Hoa, spoke about his company’sexperience in seeking businesses partners as well as its process of becoming aSamsung supplier.
Suttisak Wilanan of Thailand-based Reed Tradex Company, one of theforum’s organisers, said: “The global industry is changing to a new era ofmanufacturing capabilities, the direction of markets will not be the same sincethe digital technologies are taking over the way we produce and consume avariety of goods.”
The rising demand for integrated and advanced technologies is drivingsupporting industries to overhaul their manufacturing processes to catch upwith the global supply chain, he said.
“We see huge potential in Vet, where a number of major manufacturing bases arelocated and where skilled engineers, technicians and workers have gathered.
“What’s more, Vietnamese are precise and highly skilled, and, most importantly,perseverance is deep-rooted in their work philosophy. That is the reason Ibelieve Vietnam will become one of Asian’s manufacturing hubs in years tocome.”
The forum was held as part of pre-activities for NEPCON Vietnam, an exhibitionon SMT, testing technologies, equipment, and supporting industries forelectronics manufacturing to be organised next October.
Held by Reed Tradex and VEIA, the forum was titled “Development of supportingindustries – the foundation for the sustainable growth of Vietnam’s electricityand electronics industry.”-VNS/VNA
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