Business

HCMC supporting industry seeks market, cooperation

SGGP
The Department of Industry and Trade of Ho Chi Minh City on December 11 opened the Vietnam International Machinery and Supporting Industry Fair 2019.

Mr. Nguyen Thanh Phong, chairman of HCMC People’s Committee, visits a stall of a Vietnamese supporting industry enterprise at the exhibition. (Photo: SGGP)

Mr. Nguyen Thanh Phong, chairman of HCMC People’s Committee, visits a stall of a Vietnamese supporting industry enterprise at the exhibition. (Photo: SGGP)

At the opening ceremony, Mr. Nguyen Thanh Phong, chairman of HCMC People’s Committee, said that industrial processing and manufacturing industry is considered as key economic industry of the city. The city has implemented several solutions to support and create favorable conditions for enterprises in this field to develop. Of which, investment stimulation program is for supporting industry sector only, hereby helping enterprises to invest in upgrading machinery and equipment and improving competitiveness. However, he also said that, in order to participate deeply and sustainably into global supply chain, domestic enterprises need to improve productivity, upgrade technology towards environmental protection. The city will increase activities to promote and connect supporting industry enterprises in the city with end-to-end and foreign direct investment enterprises to create conditions and opportunities for the city’s supporting industry to develop.

So far, the city has approved 22 projects with total preferential loans of VND938 billion. Many enterprises participating in the program have started to join global supply chain, such as Hiep Phuoc Thanh Company and Minh Nguyen Supporting Industry Joint Stock Company.

Evaluating the supply capacity of  Vietnamese supporting industry, Mr. Lim Jae Hoon, Korean Consulate General in HCMC, said that Vietnam’s industrial machinery and equipment sector has been posting high growth, approximately 20 percent annually. Supporting industry products of Vietnam have had positive improvement in quality and cost prices, increasing their competitive edge in the market. Therefore, the participation of more than 300 domestic and foreign enterprises, of which more than 200 enterprises are from South Korea, will be an opportunity for Vietnamese and Korean to seek partners.

By Ai Van – Translated by Thuy Doan

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