Ho Chi Minh City seeks to promote export of mechanical products

Ho Chi Minh City authorities have actively collaborated with local businesses to strengthen trade promotion activities, aiming to promote the export of mechanical and digital technology products and electrical equipment, which are strengths of the southern economic hub.

The Investment and Trade Promotion Centre of HCM City (ITPC) and HCM City Association of Mechanical–Electrical Enterprises are jointly organizing the “HCM City Products Week 2023 - Mechanical and Electrical Devices and Digital Technology” which attracts the participation of over 40 businesses.

Exhibitors are showcasing machinery, electrical equipment, digital technology services and solutions, logistics services supporting the mechanical engineering and electrical equipment manufacturing industry, and warehouse storage solutions.

HCM City seeks to promote export of mechanical products | Business | Vietnam+ (VietnamPlus)
At the “HCM City Products Week 2023 - Mechanical and Electrical Devices and Digital Technology” (Photo: vneconomy.vn).

According to Tran Phu Lu, ITPC Deputy Director, the products selected by businesses to showcase in the exhibition are reputable and high-quality items with beautiful designs and advanced technology, which also incorporate digital technology and automation in their applications.

The expo, to go on until June 7, is part of a city trade promotion campaign to help mechanical and electrical businesses promote their brands and products.

Mechanical engineering, machinery, and electrical equipment are key industries and serve as drivers of HCM City’s industrial development. Due to the impacts of the global economic downturn, HCM City's export turnover in the first half of 2023 is falling sharply.

In addition to trade promotion activities and market support, the municipal administration is also focusing on resolving difficulties and obstacles facing local businesses related to capital for production and consumption, thus helping businesses boost their export in the second half of the year and next year.

With support from the management authorities, mechanical and electrical businesses are making efforts to meet the criteria for joining supply chains.

According to the Department of Industry under the Ministry of Industry and Trade (MoIT), Vietnam has around 25,000 mechanical and electrical businesses, accounting for nearly 30 per cent of the total number of processing and manufacturing enterprises in the country.

Data from the General Statistics Office (GSO) shows that in the first quarter of 2023, the export turnover of machinery, equipment, tools, and spare parts group reached an estimated 9.85 billion USD, down a 3 per cent year-on-year.

The main importers of Vietnamese machinery, equipment, tools, and spare parts in the period were the US (3.99 billion USD), the European Union (1.46 billion USD), China (701 million USD), and Japan (663 million USD).

According to insiders, the shifting of manufacturing workshops from China to Southeast Asia in general and Vietnam, in particular, is creating a great opportunity for Vietnamese businesses to access investment sources from foreign countries.

Tran Quynh Huong, who is in charge of supply chain management at Source of Asia, said with the presence of multinational companies such as Samsung, Foxconn, and Intel, Vietnam has become a leading country in the export value of electrical and electronic products over the past decade.

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(Source: Vietnamplus)