HCM City to hold support industry expo

An expo on the supporting industry will take place at the New World Hotel in HCM City on December 20 to help foreign-invested manufacturers in Vietnam to look for potential local suppliers, the organiser said.
Deputy director of the HCM City Service of Planning and Investment Luong Van Ly said the event was aimed to help foreign firms secure local supplies of materials and accessories, as this remains a problem for many foreign companies here.
The event is to be organised by Ly’s service and the HCM City Investment and Trade Promotion Centre in collaboration with Japan External Trade Organisation (Jetro). There are no exhibits at the expo, however.
By considering demands of foreign-invested enterprises (FIEs), the organiser will arrange meetings between FIEs and local companies so that they can forge cooperation, Ly said at a press briefing here over the weekend. Around 20 FIEs and 50 local partners will join the event.
The expo, the first of its type to be held in Vietnam, is aimed to spur the development of the supporting industry in Vietnam, which is considered a loose link in the country’s efforts to lure for eign investors. Ly said the expo primarily targets Japanese investors, who have several times complained about the inadequate supporting industry in Vietnam.
Many foreign investors have pointed out that they had to import many types of accessories and components for turning out a finished product in Vietnam, as local suppliers could not meet their demands. This has led to blunt competitiveness, according to Ly. Takashi Nakamo, managing director of Jetro in HCM City, also stressed this problem. though he said the situation has improved a little.
In 2002, Japanese investors in Vietnam were able to find 19.4°”0 of the necessary materials for their production, and the rate increased to 27.5% in 2003, he said. Most of the components and materials were supplied to Japanese investors by Taiwanese companies.
A Jetro survey shows two-thirds of Japanese investors in Vietnam want to have materials and components supplied locally. Nakano said
He added that Jetro had invited three Japanese experts to the expo to provide consulting to local suppliers how to meet demands of Japanese investors. Alongside the expo will be seminars on Vietnam’s policies to develop the supporting industry.

 

Category: Business