FIEs suffer from dismal supporting industries

Source: Pano feed

Ha Van


He said, “It is extremely difficult for businesses from our country to find suppliers of items like electronic components and screws for mechanical engineering, automobile manufacturing and information technology.”


Most Vietnamese firms cannot satisfy the high requirements for product quality and delivery set by Japanese enterprises, said Osato at a forum on how to develop supporting industries held in HCMC on Monday.


Vietnamese enterprises active in supporting industries are mainly assemblers. They have yet to create value added components and meet quality standards, he said.


Therefore, he suggested forming an alliance between businesses of Vietnam and Japan. This alliance should aim at four basic industries – molding, metal processing, mechanical engineering and information technology.


JETRO will serve as a bridge between businesses of the two countries, providing Vietnamese companies with information on supply and demand of Japanese firms, sharing market information and organizing business meetings.


From October 10 to 20 this year, JETRO will hold a meeting between Vietnamese and Japanese entrepreneurs.


Peter Opdahl, president of ITO Corporation, specializing in semiconductor technology, circuit board connection and welding technology, said the factory is not the starting point, but it is just in the middle of the process of bringing products to end-users.


When finding chances to launch their products into the market, small enterprises in Vietnam must cooperate with larger companies to join the supply chain by studying their technology, quality and price control, he said.


He hoped the formation of a business alliance would help Vietnamese businesses further engage in the supply chain of ITO as well as other Japanese firms.


Speaking at the forum, many experts said supporting industries in Vietnam were still heavily reliant on processing and assembly due to insufficient investment in research and development and low human resource quality. In addition, State policy support for businesses is not enough, hindering the development of supporting industries.


Le Bich Loan, deputy head of the Saigon Hi-Tech Park management board, said the policy for attracting investment in supporting industries remained unclear and had not addressed the needs of enterprises. Besides, inadequate investment in product quality and limited financial and human resources are the problems that need solving drastically.




Đăng ký: VietNam News

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