At “Opportunities from Free Trade Agreements (FTAs) to attract investment into industries” workshop, Mr. Phan Dang Tuat, former Director of the Institute for Industrial Policy and Strategy said that w88 link w88 moi nhat has 1,383 businesses operating as part suppliers out of a total 500,000 firms, divided into three groups of mechanic, electronics, rubber and plastic.
Mr. Phan Dang Tuat added that the localisation rate in w88 link w88 moi nhat - the percentage of a product locally made - is too low as the number of Vietnamese part supplying businesses accounted for only three percent of the country’s total.
According to Mr. Atsusuke Kawada, Chief Representative of Japan External Trade Organisation (JETRO), the localisation rate in w88 link w88 moi nhat was much lower than in Thailand, Indonesia and Malaysia.
A report from JETRO showed that the purchase of spare parts of Japanese firms in w88 link w88 moi nhat last year was 32.1 percent while the rate of 2014 was 22.4 percent. However, the rate was lower than those of Japanese enterprises operating in China with 64.7 percent, Thailand 55.5 percent, Indonesia 40.5 percent, and Malaysia 36 percent.
At the workshop, Deputy Minister of Industry and Trade Mr. Hoang Quoc Vuong said that under the tariff cut, w88 link w88 moi nhat would have opportunities to improve competitiveness and exports to both traditional and new import markets, on the road map in bilateral and multilateral FTAs with important partners. Mr. Vuong said this would be an opportunity for w88 link w88 moi nhat to participate in global production and the supply chain while making Vietnamese industrial products more diversified.
“w88 link w88 moi nhat should promote the building of a start-up model for companies in the sector. Ministries and agencies should study how to establish more firms in the industry”, Mr. Tuat added.
Mr. Atsusuke Kawada suggested expanding the production scale of automobile spare parts and the Government should have clear policies in supporting Vietnamese enterprises which produce office equipment such as printers, and household appliances such as refrigerators and washing machines. In addition, he said that the priorities for part supply of household appliances, office machines and automobile industry have been extremely important.
Several big producers from Japan have relied on imported spare parts from China. w88 link w88 moi nhat could nurture businesses producing spare parts to reduce imports from China.