Connecting Vietnamese, Japanese supporting firms

Deputy Director of the Hanoi Department of Industry and Trade Nguyen Dinh Thang said that the number of supporting industry companies in the capital city has increased continuously along with improvements in their operations. These companies operate in three major fields: 1) manufacturing components and spare parts for automobiles and motorcycles, electrical and electronic products; 2) products catering for the textile, garment, leather and footwear industries; and 3) products for high-tech industries. Many supporting industry companies have manufacturing facilities and products meeting international standards.

However, Thang added, Hanoi in particular and Vietnam in general still lack a lot of experience compared with other countries in the region in developing supporting industries. Appropriate policies and mechanisms and suitable solutions are needed for Vietnam and the capital city to keep pace with the region and the world in this field.

The 2023 Hanoi Supporting Industry Fair brings many trade opportunities - photo: Nguyen Duyen

Seminar participants discussed investment trends of Japanese firms and opportunities for their investment in Hanoi’s high technology and supporting industries. Vietnamese companies shared their successful experience in participating in the supply chains of major enterprises and large corporations. Participants also talked about the existing conditions as well as the potential of the Vietnamese molding industry from the viewpoint of Japanese specialists.

According to Noboru Kinoshita, International Consultant at Aichi Industry Promotion Organization, Japan, Japanese small- and medium-sized enterprises are increasingly interested in Vietnam. The number of companies seeking consultancy on investment in Vietnam has increased, mostly in the fields of computer repair, network maintenance, and information technology application in production.

However, when investing in Vietnam, Japanese companies remain unsatisfied with the unclear taxation system and a lack of specific regulations on foreign direct investment (FDI) incentives. They are also worried about competition and material and component shortages.

The Hanoi Supporting Industry Fair is an annual event with its first edition taking place in 2017, helping connect Vietnamese companies with those from Japan and other countries. Good awareness of the strengths and weaknesses of Vietnamese manufacturers enables the organizing board to make suitable recommendations to connect them with foreign partners.

For their part, the fair offers Japanese firms a chance to meet and discuss cooperation opportunities with Vietnamese companies participating in the fair, as well as to seek information about those having demand for products introduced at the fair.

The seminar provided information about supporting industry development in Vietnam and the rest of the world, thus helping improve policies and mechanisms in this field to enable Vietnam to attract more investment in high technology and supporting industries.

The seminar enabled participating companies to learn from the experience of developing business and products in the supporting industry sector, helping them bring into play their strengths for participation in domestic supply chains in the Hanoi Capital Region and the global supply chains of multi-national groups and FDI companies.