Businesses seek to boost investment in hi-tech field
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.
Related News
Businesses need support from vietnamese representative offices abroad
14:48 | 20/11/2024 Headlines
Electronics industry overcomes challenges to penetrate deep into global supply chain
19:38 | 16/11/2024 Import-Export
What do businesses need for digital transformation?
09:20 | 17/11/2024 Headlines
Latest News
VN's food processing industry struggles to improve quality and value chain integration
15:53 | 22/11/2024 Import-Export
Approach strategy of the seafood industry when implementing UKVFTA
09:26 | 22/11/2024 Import-Export
Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth
09:25 | 22/11/2024 Import-Export
Vietnamese enterprises facing challenges from cross-border e-commerce platforms
14:32 | 21/11/2024 Import-Export
More News
Vietnam, Malaysia eye new milestone in trade ties
14:29 | 21/11/2024 Import-Export
Shrimp exports surge in 10 months, generating 3.2 billion USD
14:27 | 21/11/2024 Import-Export
Vietnam’s exports to the U.S. near US$100 billion milestone
09:46 | 21/11/2024 Import-Export
From the “abnormal” coffee price, worries about the new crop
09:46 | 21/11/2024 Import-Export
What obstacles limit the market share of Vietnamese goods in the UK?
14:49 | 20/11/2024 Import-Export
Why seafood exports to some Middle Eastern Countries are stalled
14:47 | 20/11/2024 Import-Export
Storm No. 3 destroys profits of many insurance companies
14:45 | 20/11/2024 Import-Export
Vietnam, Malaysia eye golden partnership opportunities in Halal industry
14:44 | 20/11/2024 Import-Export
Tra fish sector aiming for production, processing greening for sustainable development
14:41 | 20/11/2024 Import-Export
Your care
VN's food processing industry struggles to improve quality and value chain integration
15:53 | 22/11/2024 Import-Export
Approach strategy of the seafood industry when implementing UKVFTA
09:26 | 22/11/2024 Import-Export
Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth
09:25 | 22/11/2024 Import-Export
Vietnamese enterprises facing challenges from cross-border e-commerce platforms
14:32 | 21/11/2024 Import-Export
Vietnam, Malaysia eye new milestone in trade ties
14:29 | 21/11/2024 Import-Export