Manufacturing industry yet to integrate into global chain

A mobilephone assembly line at Samsung Electronics Viet Nam. The ministry said it would give support to connect local producers to foreign investment projects in Viet Nam to effectively exploit the integration process. — Photo The processing and manufacturing industry in Viet Nam has not integrated into the global production network and value chain despite its high growth rate of 14.5 per cent in 2017. The Ministry of Industry and Trade (MoIT) said the processing and manufacturing industry continued to be the main momentum for the industrial sector. Last year, its exports rose by 22.4 per cent to US$173.5 billion, accounting for more than 81 per cent of the country’s total export turnover. Of this, the export of mobilephones and spare parts contributed the highest – $45.1 billion, up 31.4 per cent from the previous year. Exports of computers and electronics were worth $25.9 billion, posting a 36.5 per cent year-on-year rise. However, the ministry said the added value of some sectors were small, such as garments and textile, leather shoes and electronics. The competitiveness of industrial products was limited. In addition to this, the association among firms in a sector and between sectors has been weak. Many companies failed to take advantages of the available resources of other firms to improve the sector’s ability. That is why production costs went higher, wasting resources of the whole sector as well as creating unnecessary competition in the industry, MoIT said. On the other hand, capital that poured in the industrial… [Read full story]


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