Vietnamese auxiliary manufacturing businesses need to join in and become a component of the global supply chain.
Speaking at a press conference on June 20, Takeo Nakajima, chief representative of the Japan External Trade Organization (JETRO) stated, "Although the proportion of Japanese companies procuring raw materials, components, and spare parts in Vietnam has risen from 28 per cent in 2013 to 37 per cent in 2022, the growth is still exceedingly slow."
He additionally announced an arrangement for cooperation to reveal the 10th Vietnam-Japan Supporting Industry Exhibition (SIE) in Hanoi, along with the 14th Vietnam Manufacturing Expo.
Director of the Vietnam Trade Promotion Agency Vu Ba Phu stated that Vietnam currently has approximately 2,000 enterprises producing spare parts and components. However, only approximately 300 enterprises partake in the multinational supply chain, generating over 600,000 jobs. Approximately 4.5 per cent of the total number of enterprises in processing and manufacturing industries are presently engaged in supporting industries.
Nakajima stated that all foreign investors are now interested in the process of mechanisation in manufacturing and supporting industries, not just those from Japan.
Nakajima posed the questions, "Can Vietnam make the necessary adjustments to become a crucial industrial production hub in the region in a timely manner? How can businesses learn from one another to keep up with the market-dominating digital transformation and AI trends?"
According to Vu Trong Tai, general manager of RX Tradex Vietnam – an exhibition organiser – Vietnam is establishing itself as a rival production base to China for global semiconductor manufacturers, serving as a foundation for industrial and technological growth, especially in new fields such as AI.
Since September 2003, JETRO has alternately organised the SIE in Hanoi and Ho Chi Minh City with the backing and cooperation of the Vietnamese government in an effort to increase the localisation rate. This year, there are 22 Japanese exhibitors in the SIE display area who wish to purchase products from Vietnamese manufacturers.
28 Vietnamese enterprises were selected to participate as exhibitors. The majority of the selected companies, which are prospective manufacturers in supporting industries, will participate in the exhibition by displaying their products and highlighting their supply capacity.
Vietnam Investment Review
