Technological and financial limitations are major development constraints for the local supply industry, Bui Quang Chuyen, Chairman of the Viet Nam Engine and Agricultural Machinery Corporation (VEAM), tells VietnamPlus.
Where does the Vietnamese supply industry stand now?
The supply industry has progressed, but not yet caught up with the country’s development demands. This is partically due to limited technological standards and difficulties in finances.
In 2015, the Government issued Decree 111/CP that aimed to give fresh growth impetus to the industry, but many shortcomings persist, including inadequate the lack of preferential interest rates on loans for investment projects.
In addition, many localities do not have policies to encourage businesses to invest in the supply industry. There is no support for investment in technology, in technology transfer, or preferential tax policies, especially for agricultural machinery. For instance, there is no import tax refund on materials and fuels used to make agricultural machinery and other supply industry items.
FDI businesses regularly complain that it is difficult to find suppliers (of spare parts, accessories etc.) in Viet Nam. What can we do to be a bigger part of the production chain?
To join in the global supply chain, particularly in the automobile industry, hi-tech production knowledge is required so that we are competitive in terms of product quality, price, packaging and delivery. There are many other factors as well.
VEAM currently has three companies in the supply industry; Machinery Spare parts No.1, Pho Yen Mechanical JSC and Song Cong Diesel Company. About 70 per cent of the companies’ output is supplied to Japanese motorbike makers.
We know that the businesses will have to invest in high-tech machinery, with accuracy and capacity of foremost importance.
To acquire and use advanced technologies, VEAM has to send its staff and workers to training courses in foreign countries and hire experts to directly train workers here.
Were there foreign businesses specialising in agricultural machinery that bought VEAM shares during its recent initial public offering…
Vietnam Import-export value surpasses 74 billion USD since 2021’s beginning
Vietnam’s import-export turnover posted a year-on-year rise of 31 percent to reach 74.51 billion USD from the beginning of 2021 to February 16.
In the reviewed period, Vietnam enjoyed a trade surplus of 2.63 billion USD, according to the Vietnam Customs.
During the Tet (Lunar New Year) holiday 2021 from February 10-16, a total of 960 firms conducted import-export activities, up 363 against the Tet holiday 2020.
A total of 10,300 customs declaration forms were filled out, up 59 percent against the previous holiday.
Meanwhile, the import-export value hit 1.67 percent, a year-on-year increase of 53 percent.
Main exports included mobile phones and spare parts, computers, electronics and components./.
Foreign capital still heads to Vietnam
As many as 798 projects added a combined over 5.11 billion USD to their investment capital, down 23 percent year-on-year in project number but up 6.8 percent in value.
Hanoi (VNA) – The total amount of foreign investment poured into Vietnam this year to September 20 reached 21.2 billion USD, equivalent to 81.8 percent of the same period last year, reported the Ministry of Planning and Investment.(more…)
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