Vietnam urged to boost supporting industry
Vietnamese businesses in supporting industries need to become more competitive to enter the global supply chain, a forum heard in Ho Chi Minh City recently.
Only a few of them are part of the production chain of multinational companies, according to Binh.
Poor production and trading competence and lack of market information are the main factors that prevent domestic firms from entering the global manufacturing chain.
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"But most of the exports are by foreign-owned firms with a low rate of local sourcing of parts," he said.
According to studies by the Vietnam Development Forum and National Graduate Institute for Policy Studies, raw materials, parts and components are the decisive factors in production costs, generally accounting for 80%, while labour only accounts for 2%.
"Therefore, the development of supporting industries is an important element in the development and competitiveness of the electronic industry," he pointed out.
Speakers at the forum, which was organised by Thailand-based Reed Tradex, VEIA, and the Vietnam Association of Small and Medium Enterprise, also spoke about the basic contents of the new-generation FTAs and the Government’s support policies for supporting industries.
The forum was held as part of NEPCON Vietnam, an exhibition on SMT, testing technologies, equipment, and supporting industries for electronics manufacturing to be held in October.
