Vietnam's Supporting Industry Lags far Behind
The supporting industry in Vietnam is not developing quickly enough to keep pace with other sectors of the country's production industry, according to a message delivered by Pham Thi Thu Hang, director of the Enterprises Development Institute of the Vietnam Chamber of Commerce and Industry (VCCI).
The number of the parts production enterprises in Vietnam is too small, Hang said.
The country's mechanical engineering and automobile manufacturing and assembly industries have seen rapid growth over the last decade but have been hampered by a lack of accessories and parts suppliers.
VCCI experts said in order for automobile manufacturers to maximize high profit ratios companies need to draw upon a greater number of accessory manufacturers.
The Ministry of Industry said Vietnam is home to some 50 automobile manufacturers with only 60 parts producers operating inside the country. This is a cause for growing concern as over 90 per cent of the automobile parts and components needed by automobile assemblers are being imported from neighboring countries.
The problem of components shortage has not been exclusively felt within the automobile industry, as the electronics, textile and garment traders have all been affected.
Another major area of concern for producers is the quality of parts presently available. With substandard components often being delivered to manufacturers, it is not uncommon for consignments to be returned.
When the world's largest laser-printer maker Canon was sourcing parts for production in Vietnam, none met the company's quality control specifications, and orders had to be placed outside the country for acceptable components.
To develop the industry, it will be necessary for Vietnam to implement a clear and workable plan, said economic experts.
The domestic production enterprises must take the initiative in collecting information and cooperating with foreign counterparts in order to ramp up production techniques, experts said.
VNA
Vietnamese
