Supporting industries become more attractive
Domestic SI companies are actively adopting modern management standards and tools in their production processes. This has led to the emergence and growth of large economic groups in basic industries, materials, and mechanical engineering such as Viettel, Vingroup, Truong Hai (Thaco), Thanh Cong, and Hoa Phat. These corporations are laying a foundation for the country’s SI sector, enabling Vietnamese companies to participate in global production networks and value chains.
Thaco Truong Hai has achieved a localisation rate of up to 40% for many of its passenger vehicle lines, with this percentage gradually increasing as sales volumes grow. Notably, the localisation rate for their bus lines is even higher, with a significant portion of mechanical components being produced in-house.
Meanwhile, Toyota Vietnam has committed to developing domestic production and implementing a localisation strategy to enhance the competitiveness of locally produced vehicles against imports. The company has launched initiatives to support its suppliers in producing high-quality, competitively priced products. Currently, most of the Toyota vehicles have achieved a 40% localisation rate, with the flagship Vios model reaching 43% according to the ASEAN value-added formula.
Yet, the potential of Vietnam's SI sector remains underutilised. The majority of the participants in this field are small- and medium-sized enterprises (SMEs), which face significant challenges in terms of market access, technology, skilled labour, and capital.
Additionally, Vietnam's SI market remains small in scale, with low production volumes, making it less attractive to potential business partners. Consequently, increasing the localisation rate for industrial products in Vietnam remains a difficult task.
Economic experts acknowledged that only about 0.2% of nearly 1 million Vietnamese enterprises are involved in manufacturing and production within the SI sector. This figure is alarmingly low compared to SI business communities in other ASEAN countries. The sector urgently needs to expand in both breadth and depth, requiring a larger and more inclusive scale. This indicates that the SI sector in Vietnam has vast, untapped potential.
Currently, SI products in Vietnam are mainly in a few sectors such as textiles, footwear, wood processing, and mechanical engineering. However, there has been little investment in high-tech, sophisticated, and complex SI products, and there are still no SI plants capable of meeting these advanced demands.
To facilitate the growth of Vietnam’s SI enterprises and deepen their integration into the supply chain with manufacturers, the Ministry of Industry and Trade’s Department of Industry has established three technical support centres in key economic regions in the north, central, and south. These centres aim to assist industrial and SI enterprises in innovation, technology transfer, trial production, improving productivity and quality, increasing added value, and integrating into the global supply chain.
Moreover, comprehensive solutions are needed to address the fundamental issue of enhancing enterprises' internal capabilities in science, technology, and finance. Strengthening support to connect businesses and enable them to become suppliers in multinational supply chains is also essential.
See also
Vietnam sees opportunities to attract investments in electronics support industries
12:37 | 17/11/2024 Support industries
North-South express railway – driving force to spawn new support industries
17:09 | 08/11/2024 Support industries
Automotive support industry strives to become spare part supplier
09:34 | 08/11/2024 Support industries
Vietnam: A new bright spot in global electronics supply chain
15:47 | 22/10/2024 Support industries
Ha Nam seizes opportunities to boost supporting industry development
15:15 | 07/10/2024 Support industries
Supporting industries catch new wave to make breakthroughs
17:00 | 03/10/2024 Support industries
See more news
Supporting industries a barrier to attracting FDI
09:43 | 30/09/2024 Support industries
Positive transformation: Supporting industries take on new responsibility
14:03 | 28/09/2024 Support industries
Da Nang to become high-tech and supporting industry hub
08:15 | 28/09/2024 Support industries
Hung Yen Province prioritizes high-tech and supporting industries
14:42 | 27/09/2024 Support industries
HCMC boosts supporting industry development
17:25 | 26/09/2024 Support industries
Southeastern localities develop support industries to modernise economy
17:33 | 21/09/2024 Support industries
Developing supporting industries needs to be a priority
11:37 | 14/09/2024 Support industries
Auto parts manufacturers manage to reach world level
06:10 | 12/09/2024 Support industries
Vietnam to boost semiconductor development with US support
15:54 | 11/09/2024 Support industries
Keys to making breakthroughs in supporting industry
08:20 | 10/09/2024 Support industries
VAT tax reduction should continue until mid-2025: Ministry
17:15 | 21/11/2024 Policy
Top legislator starts official visit to Cambodia
17:09 | 21/11/2024 News and Events
Việt Nam and Malaysia upgrade relationship to Comprehensive Strategic Partnership level
17:01 | 21/11/2024 Cooperation
Hà Nội prepares for temperature drop as cold front approaches
16:56 | 21/11/2024 Environment
First Vietnam Dialogue opens new avenues for Vietnam-Germany financial cooperation
16:18 | 21/11/2024 Cooperation
Multimedia
Vietnam - Malaysia Strategic Partnership
10:54 | 21/11/2024 Infographic
Vietnam, Dominican Republic strengthening cooperation
08:45 | 20/11/2024 Infographic
Vietnam - Brazil strategic partnership
10:26 | 19/11/2024 Infographic
Nhon - Hanoi Station elevated urban railway comes into operation
09:04 | 18/11/2024 Infographic
Key facts on G20 and Vietnam's participation
09:42 | 17/11/2024 Infographic
VAT tax reduction should continue until mid-2025: Ministry
17:15 | 21/11/2024 Policy
NA deputies scrutinise investment policy for North-South high-speed railway project
08:54 | 21/11/2024 Policy
Developing relations with China is Vietnam’s top priority: Deputy PM
08:40 | 20/11/2024 Policy
Vietnam pledges to make more contributions to APEC cooperation
09:46 | 17/11/2024 Policy
Tra fish sector aiming for production, processing greening for sustainable development
15:38 | 20/11/2024 Industry
Solutions discussed to ensure coal supply for electricity generation in 2025
16:24 | 19/11/2024 Energy
Garment industry targets 47-48 billion USD in export turnover next year
16:16 | 19/11/2024 Industry
Residents support restarting Ninh Thuận Nuclear Project, call for clear roadmap
14:46 | 18/11/2024 Energy
Workshop seeks ways to attract Japan’s green investment to Vietnam
09:43 | 20/11/2024 Investment
Government approves investment policy to build Cam Lien Industrial Park in Quang Binh
16:57 | 18/11/2024 Investment
Disbursement of public investment must be accelerated: Deputy PM
12:17 | 17/11/2024 Investment
LG plans to pour further US$1 billion investment into Vietnam
10:42 | 16/11/2024 Investment
HDBank wins three awards at Vietnam Listed Company Awards 2024
10:53 | 21/11/2024 Finance-Banking
VIB, Flywire partner to streamline cross-border payments for students from Vietnam
16:46 | 18/11/2024 Finance-Banking
Vietcombank issues 2 trillion VND worth of green bonds for first time
18:55 | 16/11/2024 Finance-Banking
UK stands ready to help Vietnam build international financial hub
17:13 | 13/11/2024 Finance-Banking
Hà Nội prepares for temperature drop as cold front approaches
16:56 | 21/11/2024 Environment
Hundreds of damaged irrigation reservoirs need repairing
09:02 | 20/11/2024 Environment
Greening e-commerce crucial for sustainable development
10:47 | 18/11/2024 Environment
National Environmental Protection Plan ensures high quality living environment
08:59 | 18/11/2024 Environment
People, community at heart of digital transformation: Deputy PM
09:26 | 21/11/2024 Science - Technology
AI is core technology of 4th Industrial Revolution: Minister
11:19 | 20/11/2024 Science - Technology
Global scientific luminaries to gather at VinFuture sci-tech week
11:08 | 19/11/2024 Science - Technology
Hà Nội to host 2024 e-commerce and digital economy forum on November 21
17:23 | 17/11/2024 Science - Technology
Việt Nam-UK Institute plans for an international university
09:14 | 21/11/2024 Society
Hanoi aims to become a smart city by 2030
09:13 | 21/11/2024 Metropolis
Huế Central Hospital boosts international cooperation to become global health hub
16:30 | 20/11/2024 Society
Hà Nội hospital partners with UK charity to provide surgeries for children with facial deformities
16:03 | 20/11/2024 Society
VN takes part in food and beverage fair in Chicago
09:45 | 20/11/2024 Vietnamese Brands
Hòa Bình honey awaits reactions from UK
10:41 | 19/11/2024 Vietnamese Brands
Post-Typhoon Yagi trade networking event starts in Hải Dương
10:04 | 19/11/2024 Vietnamese Brands
Hòa Bình exports honey and pearl onions to UK
10:17 | 16/11/2024 Vietnamese Brands
Bac Ninh Province: Dong Ho folk painting needs urgent safeguarding
15:04 | 20/11/2024 Culture
Vietnamese designers tell stories of culture at Fashion Week
10:14 | 20/11/2024 Culture
Creative City promotes socio-economic development, says expert
09:59 | 20/11/2024 Lifestyle
Five Vietnamese creations listed among the world’s 100 best-rated dishes with coconut
10:54 | 19/11/2024 Culture
Blooming buckwheat flowers on Ha Giang roads
14:54 | 21/11/2024 Tourism
Folk cultural festival on Côn Đảo Island attracts tourists
10:07 | 20/11/2024 Tourism
Tra Que named among world’s best tourism villages in 2024
11:20 | 18/11/2024 Tourism
Quảng Ninh to attract more foreign tourists by year-end
16:52 | 14/11/2024 Tourism