Representatives of JETRO, ITPC and Reed Tradex Company sign an agreement to organise expositions in HCM City in October. — VNS Photo Xuan Huong

HCM CITY (Biz Hub) — Government incentives and support measures as well as promotions are necessary for the development of the supporting industry, according to the chief representative of the Japan External Trade Organistion's (JETRO) HCM City office.

Speaking at a signing ceremony to co-organise four exhibitions related to the supporting industries in HCM City on June 15, Hirotaka Yasusumi said, "The Vietnamese Government's ‘policy for supporting industries' does not seem so effective."

A decision issued at the end of last year related to the development of supporting industries does not seem to be working well, he said.

Most Vietnamese companies in supporting industries are small or medium-sized and many lack funds to invest in modern technologies or human resource training, he said.

Since they do not know much about the policy or how to use it, it is not effective, he said.

According to a 2015 JETRO survey, the local sourcing ratio for Japanese companies in Việt Nam is 32 per cent, much lower compared to China, or Thailand, he said.

JETRO has organised many business-matching events, exhibitions and others to boost co-operation between Vietnamese and Japanese firms in supporting industries for more than 10 years, he said.

4 supporting industry expos

On June 15 JETRO, the Investment and Trade Promotion Centre of HCM City (ITPC) and Reed Tradex Co., Ltd signed a contract to jointly organise four international supporting industry exhibitions, Metalex Vietnam, Industrial Components and Subcontracting Vietnam, Nepcon Vietnam and the Business Alliance for Support Industry in HCM City in early October.

Isara Burintramart, managing director of Thailand's Reed Tradex Co., Ltd, said: "With more than 16,300 active FDI projects accounting for a total of US$238 billion, Việt Nam is the destination of choice for foreign investors."

Reed Tradex Co will organise machine tools and metalworking solutions exhibition Metalex Vietnam, Industrial Components and Subcontracting Vietnam, and measurement and testing technologies for electronics manufacturing exhibition Nepcon Vietnam.

JETRO and ITPC will organise "the Business Alliance for Supporting Industry in HCM City expo", where Japanese manufactures will display parts, equipment and supporting services and Vietnamese suppliers will display their components and equipment.

The simultaneous organisation of the four expos would enable transfer of new technologies and expansion of business networks that are vital to sharpening the competiveness edges of supporting industry, Burintramart said.

Nguyen Tuan, deputy director of ITPC, said supporting industries are in the early stage of development in HCM City and Viet Nam.

Demand for supporting industries' products is high and the potential for development these industries is huge, he said.

The city is drafting development policies for supporting industries, especially in high-tech industries, he added. — VNS