The move is aimed to help develop the automotive supporting industries, particularly as Vietnam still has to import massive basic materials for domestic car production.

The proportion of automobile parts made in Vietnam remains modest because of problems in production costs and quality.

The textile and garment industry has orders to export $18 billion worth of products, but the opportunities brought by CPTPP have not been that great so far.

Vietnamese enterprises are finding it hard to improve production value since they remain dependent on imported materials.

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.

While some experts are optimistic about Vietnam’s performance in the 4.0 Industry era, mechanical engineering companies believe the country is still beginning the “3.0 industry revolution”.

VietNamNet Bridge - The import tariff on cars with fewer than 9 seats from ASEAN countries has been cut to zero percent, but the car prices do not decrease, but are even higher than previously.

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 - Many electronics and engineering companies have become first-class suppliers for foreign-invested enterprises in Vietnam.

VietNamNet Bridge - So many industries are listed as ‘leading-edge industries’ that it is unclear which of these should be accorded top priority for development.

VietNamNet Bridge - Vietnamese conglomerates are buying foreign companies in support industries to implement their strategy to squeeze into global supply chains.

 VietNamNet Bridge – Do Thai Binh, the Vice Chairman of the Viet Nam Shipbuilding Association, spoke with Hai Quan (Customs) Newspaper about the growth potential of Viet Nam’s shipbuilding industry.

 VietNamNet Bridge – The Government is considering allocating VND1.72 trillion (US$76.85 million) for a scheme to boost the development of supporting industries in the 2016-2025 period.

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.

Electrical engineering companies complain they have to struggle to obtain jobs in Vietnamese-invested projects, even though the government has promised to increase the localization ratios in thermal power projects.