Update news supporting industries
Vietnamese enterprises are still hoping to become vendors for Samsung, but need to change their ways of doing business if they want to succeed, analysts say.
Only a few Vietnamese enterprises have become vendors that supply components and accessories to multinationals, though Vietnam has vowed to develop supporting industries.
Vietnamese businesses cannot squeeze into foreign conglomerates’ global production chains, even though they can make products satisfying requirements by importers in developed countries.
VietNamNet Bridge - Vietnam has been trying to develop support industries for 30 years, but is still finding it difficult to squeeze into the global supply chain.
VietNamNet Bridge - In the last 30 years, Vietnam has attracted massive amounts of FDI but has missed opportunities to develop supporting industries.
VietNamNet Bridge - Economists, while agreeing that Vietnam has opportunities to boost exports to the US and other choosy markets, say enterprises may not be prepared to grasp the chances afforded to them.
VietNamNet Bridge - Vietnamese conglomerates are buying foreign companies in support industries to implement their strategy to squeeze into global supply chains.
Many Japanese investors have left China for Vietnam where they believe they can have a more attractive investment environment. However, they have not chosen Vietnamese enterprises for their global supply chains.
The EU-Vietnam Free Trade Agreement (FTA) is set to offer great opportunities for the Vietnamese export market. However, opportunities may be missed if supporting industries are not prepared quickly enough to take advantage of them.
The Ministry of Planning and Investment (MPI) has said that the official development assistance (ODA) is reserved for investment and development, not for commercial purposes. Economists say that ODA is not a ‘magic wand’ for support industries.
VietNamNet Bridge - Experts have suggested that ODA (official development assistance) should be used to fund the support industry in Vietnam.
VietNamNet Bridge - There will not be the VND30 trillion fund to support the development of supporting industries as initially planned. Instead, there will be a lot of investment incentives to be offered to businesses in the fields.