Seminar discusses opening automobile industrial complexes in Vietnam

City sets sights on 7.5% growth (28-10-2009) HCM City puts focus on spurring production, business and exports. Workers in the Thu Duc Automobile Industrial Complex in HCM City assemble electrical components of a car.— VNA/VNS Photo HCM CITY — The municipal administration has asked all departments and sectors to spare no effort as HCM City strives to achieve a 7.5 per cent GDP growth rate for this year. Key areas of focus should be production, business and export, People's Committee Chairman Le Hoang Quan said at a meeting held early this week to discuss efforts and solutions to reach the year's economic targets. Quan said the city was well on track to achieve its annual social and economic development goals. He said economy had seen positive changes in the last ten months. Industrial production rose sharply by 7.2 per cent over the same period last year, while that of agro-forestry and fisheries increased by 6.8 per cent. The city's budget revenues until October had reached VND105.9 trillion (US$5.8 billion) to match last year's figures for the same period. Quach To Dung, deputy director of the city's Department of Industry and Trade, attributed the impressive growth to the government's economic stimulus packages introduced early this year to help businesses overcome difficulties caused by the global economic crisis and maintain production and business. To ensure sustainable development in the coming years, the city is now focusing on restructuring State-owned enterprises to increase their economic efficiency and expanding both domestic and export markets.…... [read more]

Domestic Press Highlights (18-06-2005) First rubbish-fuelled power plant opens HCM City's Urban Environment Company has opened Viet Nam's first rubbish-fuelled power plant in Binh Tan District's Binh Hung Hoa Ward. The plant is located at the existing Go Cat rubbish treatment centre, which has an area of 25 ha and capacity to contain 3.65 million tonnes of garbage. The new system collects gas generated from rubbish disintegration to produce electricity that will be purchased by Electricity of Viet Nam. Tuoi Tre (Youth) Vinamotor prepares to begin auto production A Viet Nam Motors Industry Corporation (Vinamotor) spokesman announced Thursday that the country would begin to produce smaller passenger vehicles by the end of this year. The Dong Vang Automobile Industry Complex in the northern province of Bac Giang will contain a factory manufacturing cars with four to nine seats, the first of its kind in Viet Nam. Vinamotor expects the domestic-made cars to boost competition in the local market and bring down prices. Sai Gon Giai Phong (Liberated Sai Gon) Delta rice growers rely on hand harvesting Farmers in many parts of the Cuu Long (Mekong) Delta still harvest rice by hand and dry it in the open air, according to a survey conducted by Can Tho, An Giang and the HCM City Agricultural and Forestry University from 2002-05. Can Tho City, An Giang and Kien Giang provinces possess the highest number of rice harvesters and dryers in the delta, but only 10-15 per cent of their rice is dried in…... [read more]

Permanent Deputy Prime Minister Nguyen Tan Dzung on Saturday visited the Thu Duc-HCM City automobile industrial complex under the Vietnam Automobile Industry Corporation (Vinamotor). He was accompanied by Minister of Transport Dao Dinh Binh and Chairman of the Ho Chi Minh City People's Committee Le Thanh Hai. President of Management Board and General Director of Vinamotor Nguyen Van Khoa said despite being newly operational, the complex plans to produce 1,000 buses and 2,000 trucks with total estimated revenues of VND2,800 billion this year. The Deputy PM praised all staff and workers in the complex for their timely installation of equipment to launch new products on the market and called them to exert greater efforts to ensure the quality of every finished product. (CPV/VOVNEWS)... [read more]

The workshop was coorganised on April 8 by the Commercial Office of the Vietnamese Embassy in Austria, the Austrian Economic Chambers (WKO) and the Association of the Austrian Electrical and Electronics Industries. The workshop helped enterprises from both countries further their understandings about each other's advantages and seek partnerships in the supporting industry sector. Vietnam has become Austria's second largest export and import market, following Thailand, since last year. Austrian import turnover of Vietnamese commodities was 550.3 million euro (US$586 million) last year. Imports consisted of garment and textiles, footwear and smart phones from Vietnam. Austria exported mechanics, electronics and health devices to Vietnam, making a turnover of 159.3 million EUR. Hans-Jorg Hortnagl, WKO Regional Director for South and Southeast Asia, said that Vietnam and Austria's cooperation potential is large. Over the past few years, Vietnam has become one of the most important partners for Austria in the ASEAN region. Hans-Jorg attributed the growth in bilateral trade to three causes. The first being the large number of Austrian companies in China. Now that Chinese market is becoming more expensive, many Austrian companies might move to Vietnam in the future. Secondly, Vietnam is an important partner in the ASEAN Economic Community (AEC), which will be established at the end of this year. Vietnam's market will be even more attractive as it becomes a manufacturing centre for ASEAN countries as well as other Asian and European countries. Thirdly, the free trade agreement between the European Union and Vietnam will be a foundation…... [read more]

The processing and manufacturing industry, which picked up 9.95% from the same period in 2014, has made significant contributions to the surging industry growth, said Minister of Industry and Trade Vu Huy Hoang at a video-conference held on July 1, adding that the increase in input production has yielded stellar growth in the production sector. Consumption of the processing and manufacturing industry also posted steady growth, rising 12.7% in the first five months of this year against the same period last year. High consumption was seen in motor vehicle production (35.5%), electronic and computing production (30.6%), metal production (23.3%) and textile production (14.5%). As of June 1, the inventory index had rose 11.8%, 1% below that of 2014. Some industrial products with lower inventory levels include rubber and plastic products (down 7.3%) and electricity equipment production (down 2.1%). However, production capacity of the country’s key industrial sectors such as electronics, garments, leather and footwear and car and motorbike assembling were limited due to dependence on imported materials resulting in high production costs. To fulfil industrial production targets in the last six months of the year, the ministry will increase the application of science-technology and increase the use of locally-produced components, Minister Hoang said. He highlighted that the ministry will look for consumption markets and foster inventory sales while calling for investment in the supporting industry sector to serve the demand of input materials and increase connectivity between enterprises in production and supply.... [read more]

Hawa to strengthen ties with different associations By Thai Hang - The Saigon Times Daily HCMC - The Handicraft and Wood Industry Association of HCMC (Hawa) held a conference on Tuesday with nine other associations in HCMC to discuss how to further cooperation. According to Thang, many associations and organizations in HCMC have worked separately so far as they think only people from the same sector can understand and cooperate with them. "This is a mistake!" Thang said. Chau My Anh, vice chairwoman of the Association of Architects, said design was very important in furniture and decoration, but many furniture companies had had the products designed by their own staff who were usually not fully qualified, instead of hiring a designer or architect. There was no commitment after the conference but representatives from the ten associations promised to boost cooperation with other sectors by exchanging information, technologies and human resources. Also at the conference, Hawa admitted 22 new members to increase its membership to 332. The association now has members in 26 provinces and cities in Vietnam working in wood processing, handicrafts and supporting industry sectors.... [read more]

Leadership Needed To Build Supporting Industries By Son Nghia It is crunch time for Vietnam to develop competitive supporting industries as the economy has spread horizontally into import-dependent processing and assembly lines “Many discussions have been held on promoting supporting industries, but very little else has been done,” Tran Hung, deputy head of the Department of Light Industries under the Ministry of Industry and Trade, told the Saigon Times on the sidelines of the seminar “Supporting industries for the manufacturing and export sector” held by the Department of Trade Promotion in HCM City last December. “If it’s just talk and no action, the supporting industries of Vietnam won’t progress from the early developmental stage they are now for years to come,” Hung said. There is a development strategy for supporting industries in place and numerous policies, decrees and circulars, but they are either indecipherable or impossible to implement, he added. With the supporting industries still in their infancy, state-owned enterprises operating in this sector are low end and low quality – only able to supply domestic assemblers, and falling short of the standards required by foreign assemblers. Meanwhile, there are only a few foreign suppliers to provide inputs for large multinational companies operating in Vietnam like Canon, Honda and Samsung. The majority of domestic private suppliers lack the capacity to rise to the call. Part of the blame lies with the public policies and investment incentives to assist supporting industries to develop, while state-owned enterprises in the sector are too…... [read more]

Loan incentives planned for suppliers in supporting industries Hung Le By Hung Le - The Saigon Times Daily HCMC - Small and medium enterprises would be given priority to take out bank loans equivalent to 70% of the total cost of their projects which will supply producers in supporting industries, according to a draft circular of the State Bank of Vietnam. The draft, which has been posted on the central bank’s website for comment, guides the implementation of regulations on loan incentives for supporting industries in line with the Government’s Decree 111/2015/ND-CP. In order to benefit from such bank loans, the draft requires enterprises to have production projects for supporting industries and meet a number of conditions under the decree including credit guarantees for their projects. Enterprises would have to use collateral equivalent to at least 15% of a loan and their own capital would make up 20% of the total cost of their projects. They should not have overdue bank loans when they apply for credit guarantees. For loans in the Vietnam dong, foreign lenders are requested to apply short-term lending rates that are not higher than the permissible maximum short-term lending rate for dong loans for corporate borrowers in other business fields. Decree 111 specifies that products of the six supporting industries sectors of textile-garment, leather-shoe, electronics, auto manufacturing, mechanical engineering, and high technology are prioritized for development. Priority projects in supporting industries are those which are new as well as upgraded and expanded with investment in new…... [read more]

Japanese businesses are increasing their investment in the trade and service sector in the southern region, said Mr. Takimoto Koji, head of the Japan External Trade Organization (JETRO) in Ho Chi Minh City.According to the JETRO, the number of Japanese firms investing in Vietnam is 1,600 in various fields, such as food, textiles, machinery, electronic products, trade, service and more.The supporting industrial sector has reached only 32 percent, focused primarily the supply of raw materials. Vietnamese enterprises are applying advanced machine and using modern equipments to provide high-quality and precision products. They also should improve their operation, management and employees' skills to join the global supply chains of supply equipment and components to Japanese companies.... [read more]

4 Mega Exhibitions Kick-off to Open New Opportunities for Manufacturing Industry October 6th marks the grand return of four mega exhibitions “METALEX Vietnam 2016,” “Business Alliance 2016 for Supporting Industry,” “NEPCON Vietnam 2016,” and “Industrial Components & Subcontracting Vietnam 2016”. The opening ceremony has again kick-off the continuous supporting from the Asean’s leading exhibition organizer – Reed Tradex to Vietnam’s manufacturing industry which is also emphasized by the cooperation among the organizer and Japan External Trade Organization (JETRO), Investment and Trade Promotion Center (ITPC), as well as other domestic and international trade promotion organizations.Vietnam’s is seeing a major new development that will make the country more interesting for foreign investors, it is becoming a determined participant in the global economy by engaging in Free Trade Agreements (FTAs). Furthermore, Vietnam is the only country from the ASEAN that signed an FTA with the Eurasia Economic Union (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan). Moreover, the strategic position where is at the middle of the ASEAN allows companies operating in Vietnam easier integration into existing regional and global supply chains. Besides, sea ports in Northern, Central and Southern Vietnam allow accessible and practical shipment to any part of the world. The future of the industry depends on its ability to embrace the new investment landscape, adapt suitable technologies and drive efficiency. Known as an annually outstanding exhibition focusing in manufacturing industry for a decade, Metalex Vietnam 2016 marks its return as a comprehensive platform for industrialist by providing relevant and specific industry intelligence…... [read more]

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