Hanoi working to raise localisation in support industries

Hanoi’s support industries have significantly contributed to the national economy and actively engaged in the global supply chain, yet their localisation remains low, resulting in the compulsory import of components worth tens of billions of US dollar each year.
Hanoi working to raise localisation in support industries
Localisation in Hanoi's support industries remains low. (Source: VNA)

The municipal Department of Industry and Trade reported that among the more than 900 support enterprises in the city, over 320 have production systems and products of international standards and which are able to serve the production by multi-national groups in Vietnam, the region, and the world at large.

The firms have continuously grown over the past years in terms of quantity, quality, and scale, mainly in the three areas of components and spare parts, products serving the textile - garment - footwear sector, and others for the high-tech industry, said Nguyen Van, Vice Chairman of the Hanoi Supporting Industries Business Association (HANSIBA).

Pointing to the modest localisation, Van said imported components in the electronics and automobile industries are worth about 35 - 50 billion USD.

Experts forecast that businesses in general and those in support industries in particular will face a host of challenges this year regarding labour, finance, and the disruption in supply chain amid global economic uncertainties.

Against the background, businesses should cooperate to engage in production chains, and gain foothold in both domestic and foreign markets, they said.

Hanoi has taken developing support industries as a solution to lure more foreign direct investments, step up technology transfer, and boost small- and medium-sized enterprises, said Tran Thi Phuong Lan, Acting Director of the Department of Industry and Trade, noting the city will work harder to help the enterprises improve their competitiveness.

Hanoi will organise relevant fairs, increase promotion activities, assist the businesses in technology transfer, and attract more foreign investments this year, she elaborated.

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(Source: VNA)