Experts say Vietnam demand for machinery to keep growing

Vietnam’s machinery and equipment market has achieved solid growth in recent years and the momentum is expected to continue, making the country increasingly attractive to foreign investors, experts have said.

Experts say Vietnam demand for machinery to keep growing

A booth displaying robotic technology at the 2019 Metalex Vietnam.

Vu Trong Tai, general manager of Reed Tradex Vietnam, the organiser of Metalex Vietnam, an annual international exhibition on machine tools and metalworking solutions, said machinery and equipment sales could grow by 12-14 per cent this year.

The rapid industrial development was the reason for the strong demand for machinery, equipment and technology, he said.

Viet Nam had emerged as an attractive investment destination, and many foreign investors had shifted their factories to the country, he said.

“Many bilateral and multilateral free trade agreements that Viet Nam has signed has helped the country become a Southeast Asian manufacturing hub, and investors who pull out of China will target Viet Nam as a leading location.”

“The demand for automotive machinery is evolving and production standards are getting higher.

“This is a challenge for local manufacturers, requiring them to keep up to date with the latest technologies and solutions so that they do not miss the business opportunity.”

Steven Chen of Yorkers Trade and Marketing Service Co., Ltd, the organiser of the annual Viet Nam International Woodworking Industry Fair (VietnamWood), said: “Viet Nam has a rapidly growing wood industry. Moreover, thanks to the growth in exports to the US and the signing of the EU-Viet Nam Free Trade Agreement and the CPTPP, there will be a lot of orders for Vietnamese wood processing enterprises.

“And Viet Nam will surely be a great market for woodworking machinery and equipment.”

In the beginning Taiwanese companies accounted for 80 per cent of the space at the VietnamWood expo, but in recent years many companies from leading woodworking machinery exporting countries such as Italy, Germany, Austria, China, Spain, and the US have been taking part, according to Chen.

Technology 4.0 and the internet of things are being adopted by the wood industry too, helping firms improve productivity, save resources and optimise the value chain.

 

Fourteen Japanese companies led by the Tokyo SME Support Centre participated in METALEX Vietnam held this month in HCM City, looking for potential customers for their products.

H. Hankirigawa, who is in charge of promoting international trade at the Tokyo SME Support Centre, said there was an increase in manufacturing plants in Viet Nam and that was one reason why Japanese SMEs wanted to enhance supply of their machinery in the market.

Recently 32 Italian companies that design and manufacture machinery, equipment and technologies for footwear production, leather goods and tanning had showcased them at a leather product exhibition.

Paolo Lemma, Italy’s trade commissioner, said most of the companies participating in the exhibition had suppliers, agents or representative offices in Viet Nam, and were looking for more opportunities and new partners.

He said Italy’s export of footwear and leather machinery to Viet Nam increased 10-fold between 2013 and 2018.

With local machinery and equipment manufacturing not developing much, Vietnamese companies are forced to depend on imports.

According to the General Department of Vietnam Customs, the country imported US$26.8 billion worth of machinery in the first nine months of the year, a year-on-year increase of 12.3 per cent, mainly from China, South Korea and Japan.

According to businesses, there is fierce competition among machinery suppliers.

Tai forecasted machinery demand to remain at current levels or even increase to 12-17 per cent in the next five years. — VNS

Vietnamese woodworking firms increase investment in technology, machinery

Vietnamese woodworking firms increase investment in technology, machinery

Nguyen Phuong, sales director of Minh Thanh Co., Ltd, said his company plans to invest more than 50 billion VND (2.15 million USD) in a production chain for bedroom and living room furniture.

In Vietnam, technology giants battle it out

In Vietnam, technology giants battle it out

E-commerce firms are now gathering strength for more costly investments rather than focusing on ads and promotions.

 
 

Other News

.
Vietnam braces for economic effects of COVID-19
Vietnam braces for economic effects of COVID-19
BUSINESSicon  20/02/2020 

Vietnam will optimise external resources to spur national economy as the impact of the outbreak of coronavirus on foreign investment flows into the country is visible, according to the Ministry of Planning and Investment (MPI).

The sun still shines in Vietnam: World Bank
The sun still shines in Vietnam: World Bank
FEATUREicon  19/02/2020 

Saying that ‘the sun is still shining above the Vietnamese sky’, the World Bank has also noted that the country should not ignore risks that could occur during bad times.

Some service businesses are thriving amid Covid-19 crisis
Some service businesses are thriving amid Covid-19 crisis
BUSINESSicon  20/02/2020 

While many industries have suffered from Covid-19 epidemic, taxi drivers and shippers are earning more money.

Farm produce stuck at border, but farmers don't want to sell
Farm produce stuck at border, but farmers don't want to sell
BUSINESSicon  20/02/2020 

Thousands of trucks are still heading for the Vietnam-China border gates, though the exports are getting stuck because of the Covid-19 epidemic.

Mekong Delta considers VND67-trillion expy projects
Mekong Delta considers VND67-trillion expy projects
BUSINESSicon  20/02/2020 

The Mekong Delta is expected to introduce two more major expressways, whose total investment exceeds VND67.4 trillion, in the years to come to bolster the region’s socioeconomic growth, according to the Ministry of Transport.

Govt’s new decree removes barriers to automobile imports
Govt’s new decree removes barriers to automobile imports
BUSINESSicon  19/02/2020 

Automobile importers in Vietnam will no longer have to obtain a Vehicle Type Approval (VTA) certificate from authorities in exporting countries, making it easier for them to import cars into the country.

VN investment inflow below expectations after CPTPP
VN investment inflow below expectations after CPTPP
BUSINESSicon  19/02/2020 

A year since the CPTPP came into force, trade between Viet Nam and other members of the trade deal had posted significant gains, but the potential to expand remained large, according to the Ministry of Industry and Trade.

VN central bank makes net cash withdrawal amidst high inflation pressure
VN central bank makes net cash withdrawal amidst high inflation pressure
BUSINESSicon  19/02/2020 

The State Bank of Vietnam made a net cash withdrawal worth VND86 trillion out of the economy through open market operations (OMO) from January 20 to February 14.

Real estate businesses ask VN Government to remove difficulties
Real estate businesses ask VN Government to remove difficulties
BUSINESSicon  19/02/2020 

The Vietnam Real Estate Association (VNREA) will next month propose solutions to Prime Minister Nguyen Xuan Phuc to remove difficulties in administrative procedures, capital and cut loan interest for real estate businesses.

Farm produce prices slump as Covid-19 hits exports
Farm produce prices slump as Covid-19 hits exports
BUSINESSicon  19/02/2020 

The suspension of trade in seafood and agriculture products at some northern border gates with China as a measure against the novel coronavirus (Covid-19) has caused a demand-supply imbalance in the market.

PM tells sugar firms it's time to sink or swim
PM tells sugar firms it's time to sink or swim
BUSINESSicon  19/02/2020 

The sugar industry will have greater development opportunities if it can re-organise itself more effectively, Prime Minister Nguyen Xuan Phuc said at a meeting on Tuesday.

FDI in Vietnam expected to surge after the epidemic
FDI in Vietnam expected to surge after the epidemic
BUSINESSicon  19/02/2020 

 As a major foreign investment hub, China is hit hard by the new strain of coronavirus, now known as Covid-19, but this also provides an opportunity for other countries to accelerate efforts to attract new foreign investment.

Van Don approved to develop into entertainment hub with casino
Van Don approved to develop into entertainment hub with casino
BUSINESSicon  19/02/2020 

Prime Minister Nguyen Xuan Phuc has approved Van Don District in the northern province of Quang Ninh as a multisectoral sea economic zone and entertainment hub that will include a casino.

Covid-19 takes toll on small, large firms
Covid-19 takes toll on small, large firms
BUSINESSicon  19/02/2020 

The novel coronavirus, now officially named Covid-19, has dealt a blow to both small and large firms.

Coronavirus hits supply chains of U.S. firms in Vietnam: AmCham Survey
Coronavirus hits supply chains of U.S. firms in Vietnam: AmCham Survey
BUSINESSicon  19/02/2020 

A number of U.S.-invested firms in Vietnam suffering supply chain complications have deep concerns about the economic impact of the novel coronavirus, or Covid-19, a survey of American Chamber of Commerce (AmCham) members indicated.

Coronavirus may lower Vietnam’s State budget by VND42.3 trillion: ministry
Coronavirus may lower Vietnam’s State budget by VND42.3 trillion: ministry
BUSINESSicon  19/02/2020 

The State budget may face a shortfall of some VND42.3 trillion (US$1.8 billion) this year due to the ongoing spread of the novel coronavirus, or Covid-19, according to the Ministry of Planning and Investment.

Le Hoang Diep Thao no longer Trung Nguyen shareholder
Le Hoang Diep Thao no longer Trung Nguyen shareholder
BUSINESSicon  19/02/2020 

Dang Le Nguyen Vu, founding chairman and general director of Vietnamese coffee giant Trung Nguyen Group, has bought all the group shares held by his ex-wife, Le Hoang Diep Thao, so she is no longer a shareholder of the group.

Eight business fields to suffer most from Covid-19
Eight business fields to suffer most from Covid-19
BUSINESSicon  19/02/2020 

Three major scenarios for economic development in 2020 have been drawn up by Can Van Luc and researchers from BIDV.

For every VND100 that businesses have, they borrow VND65: FiinGroup
For every VND100 that businesses have, they borrow VND65: FiinGroup
BUSINESSicon  20/02/2020 

FiinGroup’s president Nguyen Quang Thuan said the ratio is calculated based on more than 1,000 listed enterprises.

How will exchange rate and interest rate be affected amid Covid-19 outbreak?
How will exchange rate and interest rate be affected amid Covid-19 outbreak?
BUSINESSicon  19/02/2020 

SSI Research says the financial market in 2020 will be unpredictable and much less active than the forecasts released at the end of 2019.

 
 
 
Leave your comment on an article

OR QUICK LOGIN