HCM City , May 29 (VNA) – The Vietnamese government is called to work out plans and incentives to encourage domestic businesses to engage largely in spurring the development of support industry in a bid to lure more foreign investment.
The call was made at the sixth forum on Vietnam ’s support industry themed “Technological trend and key to success’, held in Ho Chi Minh City on May 29.
Director of the HCM City-based Investment and Trade Promotion Center (ITPC) Pho Nam Phuong raised the fact that many foreign manufacturing businesses failed to find eligible local component suppliers to realise their localisation schemes.
There are a few qualified suppliers who can ensure efficient quality management, stable operation and compliance of legal regulations on safety standards during the manufacturing process, according to Phuong.
Purchasing Manager of Vietnam Intel Company Nguyen Thanh Tam referred to another fact that local suppliers in the country have so far secured only small- value, short-term contracts which have yet earned them credibility from customers, especially foreign groups.
Meanwhile, JETRO Executive Director Hirotaka Yasuzumi compared Vietnam ’s locally-made component supply of 28 percent for Japanese firms in 2012 with Thailand ’s 53 percent level and China ’s 61 percent rate.
From this reality, Japan plans to build a policy to aid Vietnam ’s support industry, focusing on trade exchanges rather than exhibition organisation, Yasuzumi said.
There is an increasing possibility of Japanese companies investing in the Indochina, including Vietnam in the coming time, the JETRO official said, suggesting Vietnam seize this excellent opportunity and develop support industry to draw in more foreign investors.
The event was co-hosted by Thailand ’s Reed Tradex Co, the Japan External Trade Organisation (JETRO) and HCM City Investment and Trade Promotion Center (ITPC)
Vietnam News Agency
