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…)
Why Vietnam Has Become a Promising Alternative for US Businesses in Asia
Vietnam Briefing discusses trends in the Vietnam-US relationship, growing economic ties, and how US businesses can leverage and benefit from moving their production to Vietnam.
Thailand to further ease COVID-19 restrictions
The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and...
BoI plans more efforts to promote BCG economy
BANGKOK (NNT) – The Board of Investment (BoI) is working with related agencies to rev up promotion of the bio-,...
ASEAN, Canada, UN Women launch 5-year programme to advance Women, Peace and Security Agenda
Jakarta/Ottawa/New York, 24 February 2021 – The Association of Southeast Asian Nations (ASEAN), Canada and UN Women jointly launched today...
Covid-19 Thailand Situation Report
COVID-19 situation in Thailand On 15th February, 143 new cases of laboratory-confirmed COVID-19 were announced by the Ministry of Public...
Market for Alternative Investment (MAI) welcomes reinsurance broker “TQR”
SET News 11/2021 February 16, 2021 mai welcomes reinsurance broker “TQR” on Feb 17 BANGKOK, February 16, 2021 – The...
THAI airways to sell training center building to raise more funding
THAI airways has been hit hard by limited travel due to the COVID-19 pandemic, which comes as they were entered...
Subscribe via Email
Asean4 days ago
India, ASEAN Agree to Review FTA Scope, Address Uneven Market Access
Economics7 days ago
Thailand-China sign deal promoting Thai fruit export
Health3 days ago
200,000 doses of COVID-19 vaccine Distributed to 13 Thai provinces
Tourism5 days ago
Adjustments in Thailand’s tourism industry