Trade connectivity enhanced among Japan, Vietnam, ASEAN enterprises

The event, jointly held by the Japan External Trade Organisation (JETRO), the HCM City Export Processing and Industrial Zones Authority and the municipal Supporting Industry Development Centre, attracted the participation of more than 200 businesses.

Okubo Fumihiro, JETRO project director in HCM City, said that JETRO has so far organised numerous activities to facilitate trade exchanges and connectivity between small and medium-sized enterprises, in order to increase the proportion of domestic supply by local businesses.

However, this programme also aims at export promotion, Fumihiro stated, adding that businesses can sell their products to foreign markets in foreign currency.

He expressed his hope that the programme offers a new option and facilitates trade exchange among enterprises to increase the proportion of domestic supply, while boosting the exports of Japanese companies in Vietnam, and for Vietnamese businesses as well.

Currently, the proportion of domestic supply remains low in Vietnam. According to JETRO data, the supply of materials and spare parts by Vietnamese businesses reduced from 14.4% in 2014, to 13.2% in 2015, lower than that of Indonesia (20.3%) and Thailand (24.1%). 

Meanwhile, the localisation rate of Japan’s manufacturing enterprises in Vietnam also dropped slightly, from 33.2% in 2014, to 32.1% in 2015.

Ho Chi Minh City, the country’s largest economic hub, is calling on foreign enterprises, especially those from Japan, to continue investment in the four spearhead fields of electricity-electronics, chemicals, mechanics and food processing.

The city is focused on building infrastructure facilities in accordance with supporting industrial businesses’ requirements and carrying out capital assistance policies suitable for them.