Database of Vietnamese manufacturing and support industries launched

Friday, Jun 19, 2020 16:17

The database of Vietnamese manufacturing and support industries was officially launched to facilitate linkages between Vietnamese suppliers and multinational corporations. — VNS Photo

The Ministry of Industry and Trade in partnership with the International Finance Corporation (IFC) – a member of the World Bank Group – Australian Department of Foreign Affairs and Trade (DFAT) and the Swiss State Secretariat for Economic Affairs (SECO) on Friday in Ha Noi officially launched the database of Vietnamese manufacturing and support industries.

The system aimed to facilitate linkages between Vietnamese suppliers and multinational corporations. Furthermore, steps were taken to enhance the regulatory effectiveness, efficiency and development of policies on supporting industries, improve the quality of statistics and ensure the availability of timely, complete and accurate data.

The database features a large number of firms and a variety of sectors for users to build sustainable relationships, including 500 enterprises in mechanical engineering, 347 in automotive, 750 in electronics, 1,145 in textiles and garments and 910 in footwear.

Speaking at the event, Minister Tran Tuan Anh said: “The database is an important milestone to address the needs of a business-to-business (B2B) network to link local and foreign businesses. It will help businesses and investors search for information in a quick and accurate manner, meeting the demand for investment matching, enhancing opportunities for co-operation between Vietnamese and FDI businesses as well as multinational corporations. Particularly in the context of the COVID-19 pandemic with direct trade activities having experienced many difficulties, the database will likely be even more efficient in helping businesses connect and grasp opportunities presented by new generation free trade agreements to which Viet Nam is a party, such as the CPTPP or most recently EVFTA.”

A production line at Hà Nội Plastics Joint Stock Company. The system could help support domestic firms to capture the customers’ needs. — VNS Photo

Kyle Kelhofer, Country Manager of IFC – a key partner in developing the database – said: “The database has been launched at a pivotal time with the COVID-19 pandemic having strongly impacted global value chains. In this context, the stability of supply and capacity of local suppliers has become extremely important. Improved linkages between domestic businesses and multinational corporations through this database, together with Viet Nam's stable and low-risk business climate – as evidenced by the country’s success in quickly controlling the COVID-19 pandemic – are promising to help confirm Viet Nam as a key manufacturing hub in the region.”

Bui Minh Hai, chairman of the management board of the Ha Noi Plastics Joint Stock Company – a member of An Phat Holdings Group – said in the context of COVID-19, when all trade promotion activities are stalled or switched to online trading, the database system is extremely important.

“Domestic and foreign businesses have actively sought ways to exchange and co-operate but have not yet brought about the expected efficiency. We really need a national industry support portal for key industries to update relevant information regularly and connect to a database of support industry businesses. This could help support domestic firms to capture the customers’ needs,” he added.

Considered the backbone of the economy, manufacturing is a key driver of growth for the national industrial sector. With an average annual growth rate of 10.6 per cent, manufacturing is a “bright spot” for Viet Nam's industry in the context of the global economic downturn due to the COVID-19 pandemic.

In addition, the manufacturing industry is also an important sector attracting foreign direct investment (FDI). In 2019, out of 3,478 new FDI projects nationwide, the manufacturing sector contributed the highest proportion worth US$21.6 billion, accounting for 67.8 per cent of total registered investment capital. — VNS

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