Supporting industry firms welcome fresh investment wave

To make use of the global shifting of foreign investment, local firms in the supporting industry have been advised to enhance their capacity to join global supply chains, according to insiders.

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.

Source: VOV
vov.vn

Related News

Green transformation: It

Green transformation: It's time to force businesses to "get involved"

VCN - Implementing ESG (environment, society, corporate governance) and green transformation has become a mandatory requirement for businesses to achieve sustainable development.
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN – Many businesses are implementing large-scale investments in technology, energy transitions, and production processes to meet the increasingly stringent "green" criteria set by the EU 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.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.

Latest News

Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.

More News

VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

The UKVFTA and the UK’s official participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from December 15 are creating significant opportunities for Việt Nam to expand exports to the UK. However, the risk of trade defence investigations is always present.
Electronic imports exceed $100 billion

Electronic imports exceed $100 billion

Computers, electronic products and components are the first import group to exceed the US$100 billion mark this year.
Forestry exports set a record of $17.3 billion

Forestry exports set a record of $17.3 billion

Việt Nam’s forestry export turnover is estimated to reach a record of US$17.3 billion in 2024.
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Việt Nam boosts supporting industries with development programmes

Việt Nam boosts supporting industries with development programmes

Việt Nam’s supporting industries play a crucial role in the development and competitiveness of key sectors, receiving substantial government investment and support.
VN

VN's wood industry sees chances and challenges from US new trade policies

Việt Nam’s wood industry will need to be flexible due to the anticipated new trade policies of US President-elect Donald Trump in the future, according to experts.
Vietnam

Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD

Vietnam’s efforts in expanding export markets for its fruits and vegetables in 2024 has paid off as for the first time, the export of these products has brought home 7.2 billion USD, much higher than the figure of 3.3 billion USD two years ago.
Aquatic exports hit 10 billion USD

Aquatic exports hit 10 billion USD

Vietnam's aquatic exports reached 10 billion USD in 2024, driven by shrimp and pangasius, despite challenges related to markets, logistics, and raw materials, the Vietnam Association of Seafood Exporters and Producers (VASEP) said on December 23.
Read More

Your care

Latest Most read
Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participatin
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Mobile Version