Sufficient support industries would help Vietnam reduce its trade deficit, attract more international companies and catch up with new business trends, according to Vietnam Chamber of Commerce and Industry chairman Vu Tien Loc.
During the Vietnam Manufacture and Support Industries Forum, co-organised by the Hanoi Department of Industry and Trade, the Japan External Trade Organisation and Thailand 's Reed Tradex Co on Aug. 11 in Hanoi , the chairman said that many foreign manufactures, especially Japanese ones, were currently seeking Vietnamese part suppliers.
Some international support companies have had the tendency to shift their factories to countries with lower production costs. Vietnam could be a promising destination for support industry development amidst attractive investment conditions, Loc said.
Development could afford huge opportunities to local part producers in further participating in the global production chain, he said, adding that if firms could be made able to supply foreign companies in Vietnam with parts, they could also be made able to supply companies outside of the country.
During the forum, FC Hoa Lac Technology Co deputy director Le Gia Bao outlined capital shortages, limited management capacities, insufficient technologies and a lack of skilled workers as challenges facing Vietnamese small-sized support industry enterprises.
To overcome such challenges, firms would have to further co-operate in fulfilling large contracts signed with foreign companies rather than trying to reduce their prices to gain more clients, he said.
"Price is not a decisive factor. Small businesses should join hands in meeting technical requirements set out by foreign clients while ensuring on schedule delivery," he noted.
Hitoyoshi Shii, an expert from the Japanese International Cooperation Agency (JICA), suggested that domestic part producers further improve their management capacities and pay more attention to human resource training.
Firms should also focus on machine maintenance, seeing as many have failed to upgrade their machinery due to inadequate finances, he said./.