Businesses seek to boost investment in hi-tech field

Firms operating in the electronics and supporting industries have been advised to be well-prepared for a fresh investment wave from Europe in the hi-tech field, according to insiders.

Vietnam represents an attractive investment destination for a number of several European businesses, that are keen to invest in the local electronics and supporting industries.

Vu Tu Thanh, deputy regional managing director and senior country representative of the US-ASEAN Business Council in Vietnam, said moving past the novel coronavirus (COVID-19) pandemic, enterprises are anticipated to seize upon the opportunities from the restructuring of global supply chains, including taking full advantage of both the EU-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP).

“We should make full use of international economic integration and the restructuring of global supply chains, while simultaneously investing further in the electronics, e-commerce, and supporting industries, which can be considered as bright spots of the Vietnamese economy in the current climate,” said Thanh.

Nguyen Van, vice chairman of the Hanoi Supporting Industries Business Association (HANSIBA), said Vietnam has had numerous opportunities to welcome the shift of foreign direct investment (FDI) inflows and to increase the sustainability for supply chains.

Van therefore emphasised that amid the gloomy global outlook due to the COVID-19 pandemic, Vietnam represents one of the most open economies in the world, especially following the signing of more than 10 bilateral and multilateral Free Trade Agreements (FTAs), including the newly-signed RCEP.

FDI in the nation during the opening six months of the year reached approximately US$16 billion, representing a decline of 15% from the same period last year, which is still positive in comparison to other countries that have been hit hard by COVID-19.

Nguyen Van Toan, deputy chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), said domestic firms, especially small and medium-sized enterprises (SMEs), must now change their mindset to welcome investment from Europe’s hi-tech companies, many of whom do not use low labour costs.

In his opinion, several businesses have become too dependent on a single market that provides raw materials and semi-finished products. These inadequacies should be removed as a means of seizing on opportunities for greater development.

Van also underscored the importance of training high-quality human resources and enhancing infrastructure connectivity, noting that relevant ministries and agencies should therefore define strategic priorities. This should be done alongside fine-tuning the legal system, improving the local business environment, and enhancing the role of associations in strengthening linkages for businesses.

Do Thi Thuy Huong, a CEO of the Vietnam Electronic Industries Association (VEIA), said the past five years has seen the growth rate of the electronics industry fluctuate between 18% and 22% annually, with the industry posting a large trade surplus and contributing to the country's export turnover.

Amid the shift of the global supply chain due to COVID-19, several global electronic firms have strived to establish themselves in the country, a factor which has posed challenges for supporting businesses as they try to enhance their competitiveness to provide components and accessories for the world’s major manufacturers.

Huong pointed out that Vietnamese workers largely fail to come up to the standards set by foreign hi-tech companies as many are not skilled enough whilst the local workforce lacks talented engineers.

She emphasised that Vietnam still lacks joint training schemes as there are not enough competent locally trained engineers, a factor which has made it challenging for domestic electronic firms to compete.

With regard to high skills and technological experience, European companies typically have high standards for corporate social responsibility in order to protect and train workers and employees, as well as protecting the environment.

Huong therefore underlined the need to improve human resources in order to participate in supply chains and welcome increased investment from European firms.

Source: VOV
vov.vn

Related News

Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.
Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
What do businesses need for digital transformation?

What do businesses need for digital transformation?

VCN - According to experts, to support businesses in successful digital transformation, the state needs to complete the policy framework and testing mechanism (sandbox) for the development of digital economy, green economy, circular economy and new business models. At the same time, reform institutions to attract investment in digital technology in the direction of maximizing convenience for capital contribution, share purchase, merger and acquisition of digital technology enterprises. Create a favorable environment to promote digital transformation and support business development.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version