Supporting industry firms welcome fresh investment wave
At present, a series of giant manufacturers such as Panasonic, Bosch, TTI, Samsung, and Klaus, are looking for additional suppliers and increasing the localisation rate in order to optimise production efficiency
Most notably, following the country’s successful efforts to contain the novel coronavirus (COVID-19) pandemic, several enterprises from Europe and the United States are seeking Vietnamese suppliers of spare parts due to the global disruption of supply sources.
To welcome the shifting of foreign investment, numerous domestic companies have made great strides to improve their capacity in the race to become the main suppliers for large international corporations.
An Phat Holdings Group (APH) is a case in point. Three APH affiliates has deployed a consulting scheme to develop the supporting industry introduced by the Ministry of Industry and Trade and Samsung since 2019. The programme aims to increase the localisation rate, develop high-tech products, expand investment, and elevate their position within the global supply chain.
Dinh Xuan Cuong, vice chairman and CEO of APH Group, said the firm is anticipated to increase the localisation rate for components and spare parts that are used to manufacture mobile phones, cars, motorbikes, printers, and washing machines.
“We are proud to be a leading enterprise based in Hai Duong province that is capable of manufacturing spare parts for mobile phones and printers, meeting international standards,” Cuong told congthuong.vn.
Dao Duy Luan, deputy director of Systech Technology & Trading JSC, revealed that several Vietnamese enterprises have become product suppliers for large corporations, including Samsung, LG, Canon, Meiko, Brother, and Nidec, due to their automated production lines which make use of advanced technologies.
He underlined the importance of improving product quality and offer affordable prices to establish stable long-term relationships with foreign businesses, adding that the company has so far provided accessories to approximately 300 customers that are FDI enterprises originating from Japan and the Republic of Korea, including giants such as Sam Sung, Canon, and Brother.
According to data released by localities nationwide, the supporting industry has rapidly become a magnet for foreign investment. Ho Chi Minh City for instance has attracted 23 newly licensed projects capitalized at roughly US$141 million in the supporting industry during the initial ten months of the year.
Le Bich Loan, deputy director of Saigon High-Tech Park (SHTP), stated that several SHTP businesses have received enquiries from foreign investors about the possibility of becoming their suppliers. However, she said local firms should work to enhance their capacity in order to fully grasp the opportunity.
She pointed out that in line with current financial capacity, production capacity, technological level, and human resources, only a few Vietnamese enterprises are able to meet the criteria set by foreign corporations. In addition, with the support of state management agencies, banks, and buyers, these firms will be able to gradually fulfill their goals and become suppliers for international groups.
Related News
Green transformation: It's time to force businesses to "get involved"
09:23 | 25/11/2024 Headlines
Accelerating investment to meet "green" standards
09:02 | 24/11/2024 Import-Export
Electronics industry overcomes challenges to penetrate deep into global supply chain
19:38 | 16/11/2024 Import-Export
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance
Latest News
Nghệ An Province anticipates record FDI amidst economic upswing
15:49 | 26/12/2024 Import-Export
Green farming development needs supportive policies to attract investors
15:46 | 26/12/2024 Import-Export
Vietnamese enterprises adapt to green logistics trend
15:43 | 26/12/2024 Import-Export
Paving the way for Vietnamese agricultural products in China
11:08 | 26/12/2024 Import-Export
More News
VN seafood export surpass 2024 goal of $10 billion
14:59 | 25/12/2024 Import-Export
Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK
14:57 | 25/12/2024 Import-Export
Electronic imports exceed $100 billion
14:55 | 25/12/2024 Import-Export
Forestry exports set a record of $17.3 billion
14:49 | 25/12/2024 Import-Export
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products
09:43 | 25/12/2024 Import-Export
Việt Nam boosts supporting industries with development programmes
13:56 | 24/12/2024 Import-Export
VN's wood industry sees chances and challenges from US new trade policies
13:54 | 24/12/2024 Import-Export
Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD
13:49 | 24/12/2024 Import-Export
Aquatic exports hit 10 billion USD
13:45 | 24/12/2024 Import-Export
Your care
Nghệ An Province anticipates record FDI amidst economic upswing
15:49 | 26/12/2024 Import-Export
Green farming development needs supportive policies to attract investors
15:46 | 26/12/2024 Import-Export
Vietnamese enterprises adapt to green logistics trend
15:43 | 26/12/2024 Import-Export
Paving the way for Vietnamese agricultural products in China
11:08 | 26/12/2024 Import-Export
VN seafood export surpass 2024 goal of $10 billion
14:59 | 25/12/2024 Import-Export