return icon Vietnamnet.vn

Supporting industries at a crossroads

The foreign capital inflow into Vietnam will help local enterprises expand their production, but the opportunity can only be grabbed by capable enterprises.

Nguyen Van Hung, CEO of CNC Tech, in recent days received emails and phone calls from Japanese companies that want to place orders or cooperate with CNC Tech.

 

{keywords}

 

 


“It previously took six months or one year to reach a cooperation agreement with foreign partners. It now takes one or two months only,” Hung said.

The Japanese government has announced it would use $2.2 billion of the record high economic relief package to help Japanese manufacturers relocate their production out of China.

A survey by Tokyo Shoko Institute showed that 37 percent of 2,600 polled enterprises want to relocate their factories out of China.

Hung of CNC Tech feels that the process of relocating production bases out of China has become clearer than ever since the Japanese government made the announcement.

A survey by Deep Knowledge Ventures, a Hong Kong-based investment fund, last April showed that Vietnam is second just to Singapore in Southeast Asia in the list of safe destinations.

Not only Japanese but European enterprises are also considering leaving China. South China Morning Post cited a survey by the association of European and German enterprises in China as showing the discouraging business results of the enterprises. Half of them said their profit margin may decrease by 20 percent.


A survey by Deep Knowledge Ventures, a Hong Kong-based investment fund, last April showed that Vietnam is second just to Singapore in Southeast Asia in the list of safe destinations.

According to Deep Knowledge Ventures, investors will feel more secure when pouring capital into safe countries.

“We are continuing to make investment in anticipation of the production relocation movement, though the company is facing difficulties because of Covid-19,” Hung said.

Meanwhile, other enterprises, though seeing great opportunities from the production relocation movement, still dare not make big investment in the context of demand decreases and signs of global recession.

Dang Quang Khoi, CEO of An Lap Plastics, which is the partner of some foreign electronics companies, said he knows the movement, but doesn’t have resources and dare not take risks to expand production in the current conditions.

During the social distancing days, like many other companies, An Lap had to cut 60 percent of production capacity because Samsung and Honda, the largest partners, cut orders. To date, 80 percent of production capacity has been restored, but Khoi still feels worried about the risks which may come in the future.

In 2019, when realizing the capital inflow to Vietnam because of the US-China trade war, Khoi made big investment to increase productivity and improve quality with hope that the revenue would increase by 20 percent in 2020.

However, because of Covid-19, he dreams of obtaining revenue equal to 2019. 

Mai Lan

 

Enterprises in supporting industries busy with orders during COVID-19

Enterprises in supporting industries busy with orders during COVID-19

While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.

Supporting industries leading automakers towards success

Supporting industries leading automakers towards success

Vietnam is striving to successfully build up its automobile industry. 

MORE NEWS

VIETNAM BUSINESS NEWS MAY 26

Vietnamese economy to do well in 2022: experts

VIETNAM NEWS HEADLINES MAY 26

Two die in elevator accident at Hanoi building

Will Vietnamese "unicorn" Coin98 be listed on Coinbase?

If this turns out to be true, US investors will have easier access to Coin98. This would open a new development period for Vietnamese Blockchain startups.

VN jumps eight notches in WEF’s Travel & Tourism Development Index

Vietnam’s travel and tourism sector has jumped eight steps despite two years of slowdown caused by the pandemic, according to the World Economic Forum’s (WEF) latest study.

VN real estate bonds shackled by rules

Although experts believe that rating agencies are an indispensable element of a healthy and transparent market, and a significant fundraising channel, real estate developers may suffer hurdles due to stringent bond issuance rules.

Vietnam Int’l Fashion Tour helps promote national culture, tourism

The debut version of the Vietnam International Fashion Tour (VIFT) will get underway in 2022 and 2023 across five cities and provinces, with the aim of popularizing the country’s culture and tourism to the world, said organisers.

Foreigners’ joint ownership of seaports, airports in Khanh Hoa mustn’t be allowed

When discussing the draft resolution on special policies on a trial basis in Khanh Hoa province on May 24, many National Assembly deputies showed concern about the foreign ownership of seaports and airports.

Vietnam-Asia DX Summit 2022 opens in Hanoi

The Viet Nam-Asia Digital Transformation (DX) Summit 2022 opened in Ha Noi yesterday, where experts are examining ways to further utilise the...

Reaching growth target a challenge for this year: NA chair

National Assembly Chairman Vuong Dinh Hue yesterday day expressed his concern that this year’s growth target will be hard to reach.

Hai Phong tops Public Administration Reform Index for first time

Hai Phong and the Ministry of Justice topped the Public Administration Reform Index (PAR Index) of 2021, based on feedback collected from more than 79,000 people about administration reforms in 63 localities and 17 ministries in Vietnam.

Thai retail corporation to sell some 1,000 tonnes of lychees

Thailand's retail corporation Central Retail in Vietnam plans to put on shelves about 1,000 tonnes of lychee this year, with first batches of the fruit from Bac Giang province transported to its supermarkets after a ceremony on May 25.

Facebook ads in Vietnam to be charged 5 percent VAT from June 1

Facebook ads in Vietnam will be subject to a 5 percent value added tax (VAT) beginning from June 1.

Base.vn owner successfully calls for $3.5 million of capital

The investment in True Platform is one of the largest ever seed-round investment deals in a technology startup in Southeast Asia.

Hanoi to spend VND60 billion for civil servants to study for master’s, doctoral degrees

Under a project on improving the quality of its personnel, Hanoi plans to spend VND61 billion to send civil servants and public employees to training courses for master’s and doctoral degrees in Vietnam and overseas.

Japan helps Vietnam with earth observation satellite project

JICA has signed a loan agreement with the Vietnamese Government to provide a Japanese ODA loan worth over 18,870 million yen for the Disaster and Climate Change Countermeasure project using the earth observation satellite.
back_to_top