Lack of supporting industries highlighted

More efforts should be made to develop supporting industries in HCM City to strengthen the competitiveness of domestic enterprises, according to Sai Gon Giai Phong (Liberated Saigon) newspaper. The current dependence on imported materials has cost Vietnamese companies their competitiveness even in the domestic market, the newspaper said. Businesses in HCM City imported 77 per cent of all the raw materials and feedstock they needed last year in sectors like garment and textiles, electronics and machinery production, according to the city Department of Industry and Trade (DoIT). Nearly all garment companies import a significant ratio of their raw materials due to the low production by supporting industries. Most companies in supporting industries are small- or medium-sized so they face difficulties such as lack of funds and modern technologies and equipment. Not surprisingly they are unable to compete with companies in other ASEAN member countries, an industry spokesperson said. Nguyen Phuong Dong, deputy director of DoIT, said the city would speed up restructure of supporting industries. Industrial parks and export processing zones in the city usually lease out sites of 5,000 square metres to a few hectares to attract big companies and reduce infrastructure cost whereas supporting industry companies only require small pieces of land, he said. To resolve this problem, in 2015 the People’s Committee approved the construction of dedicated industrial parks for supporting industries at the Sai Gon Hi-Tech Park, Tan Thuan – Linh Trung Export Processing Zone, and Hiep Phuoc Industrial Park. Measuring one to four hectares, these… [Read full story]

Advertisements



Link http://news.c10mt.com/search/label/vietnambreakingnews and http://news.c10mt.com


Links Topics : https://news.c10mt.com/2018/02/lack-of-supporting-industries.html