Mr Chainarong Limpkittisin, Managing Director of Reed Tradex said that according to HSBC, South East Asia’s FDI inflows is accounted for 7.6 per cent of global FDI – almost equal to China’s 8.1 per cent. With their young populations, these countries and India should see further FDI increases from companies looking to capitalize on low-cost labor. Among the ASEAN countries, Vietnam attracts the second-highest amount of foreign direct investment (FDI) after Singapore .
Vietnam's industrial sectors have only focused on basic assembly rather than developing the supporting industries, which has prevented businesses from attracting foreign investors. According to the Ministry of Industry and Trade (MIT), Vietnam annually spends US$100 billion for imports, including over US$20 billion (23%) for machinery and equipment. In many key industries, the proportion of domestically-made inputs are accounted around 25-30%. These are evidences of the weak performance of domestic supporting industries.
According to statistics of the Foreign Investment Agency (Ministry of Planning and Investment), Japan became the largest investor of Vietnam in 2012 accounting for 13.6 percent of the total registered capital. Japanese FDI projects in Vietnam are large in terms of investment capital and concentrate in high technology industries which have a positive effect on the Vietnamese economy. Japanese FDI in Vietnam is predicted to continue to increase in the time to come. This will not only benefit Japanese businesses but also offer the promise of new employment and technology transfer opportunities.
In this regard, technology transfer plays a vital role as the process to hand over technological knowledge, information and know-how across organizational border from developed to less technologically developed countries to enable effective acquisition, learning, absorption and application of knowledge to reach the execution conditions of production activities and management as same as those at original economic entities. To become an industrialized country in the next decade as expected in the Socio-economic Development Strategy 2011-2020, it is urgent for Vietnam to build up powerful supporting industries. Moreover, strong supporting industries would help Vietnam reduce its trade deficit, attract more international companies and provide huge opportunities to local part producers in further participating in the global production chain.
In the upcoming September 4 -6, 2013, industrialists will set out to discover a new world of technologies and business opportunities from three specialized exhibitions which will get together to create a force for Supporting Industries (SI) with Cool Japan Technology.They are: The 5th Vietnam-Japan Exhibition on Supporting Industries in Hanoi (SIE 2013) - An exhibition where Japanese parts buyers and Vietnamese parts makers can meet to seek business opportunities, Japanese Monozukuri Technology Exhibition - celebrating the 40th anniversary of Japan-Vietnam Friendship and Vietnam Manufacturing Expo 2013 - Vietnam's Most Comprehensive Show for Manufacturing and Supporting Industries. The combination of three Expos will create an all-under-one-roof meeting center for the manufacturing community. Buyers and sellers would meet, exchange knowledge and ideas, discover technologies, and develop their business networks. Any manufacturers, assemblers, makers interested in are welcome to reserve booths at this big event. This widely opens doors for Vietnamese makers to network with Japanese industrialists for machinery import and industrial production, and to urge Vietnamese small-to-medium enterprises to develop higher competitiveness to prepare for receiving Japan’s investment expansion.
Realizing the importance of technology transfer processes, Vietnam Manufacturing Expo 2013 will host “Vietnam Supporting Industries Forum # 5” under the theme of “Technology Transfers: Taking Business Collaborations to Greater Success” to offer visions, best practices and experiences by the government and private sectors to keep the shorter distance for Vietnamese and Japanese industrialists to achieve their mutual objectives accordingly on 9 May 2013 from 13.30 – 17.00 hrs. at Ballroom, Melia Hanoi Hotel, Hanoi, Vietnam.
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