The Japan External Trade Organization (JETRO), the Vietnam Trade Promotion Agency (Vietrade) at the Ministry of Industry and Trade (MoIT), and RX Tradex Vietnam signed an agreement on June 20 on the holding of the 10th Vietnam-Japan Supporting Industry Exhibition (SIE) and the 14th Vietnam Manufacturing Expo (VME) in 2023 on August 9-11.
Mr. Takeo Nakajima, Chief Representative of JETRO, emphasized that two-way trade between Vietnam and Japan nearly doubled in the 2013-2022 period. Japanese direct investment into the country increased 12 per cent year-on-year in 2022 to $4.559 billion.
A survey conducted by JETRO found that the percentage of Japanese companies purchasing raw materials, components, and spare parts in Vietnam rose from 28 per cent in 2012 to 37 per cent in 2022.
“Though the proportion has risen significantly, it remains low compared to the economic development of the two countries,” said Mr. Nakajima.
According to Mr. Vu Ba Phu, Director of Vietrade, Vietnam’s industrial sector has made significant improvements thanks to State mechanisms and policies.
“The country is now home to about 2,000 enterprises manufacturing spare parts and components, of which 300 participate in global support chains, providing more than 600,000 jobs,” he added. “In recent years, supporting industries have significantly contributed to the development of the country’s economy. Businesses have continuously tried to improve product quality, strengthen competitiveness, and meet strict market requirements.”
MoIT has actively implemented effective support programs in recent times to enhance production and management capacity at businesses and cooperate with multinational corporations and large FDI companies in Vietnam. This has led to improvements in the quality of human resources and enhancements in the competitive capacity of Vietnamese enterprises in the manufacturing and processing industry.
Mr. Phu also added that the Ministry has established three technical support centers for industrial development in the northern, central, and southern economic regions. These centers are aimed at helping enterprises accelerate innovation and technology transfer for production and testing and improving productivity and quality while seeking to participate in the global supply chains.
At the same time, the Ministry has also helped build links between domestic supporting enterprises and foreign investors through trade promotion activities and business-matching events.
Mr. Vu Trong Tai, General Director of RX Tradex Vietnam, said the World Bank’s half-year report on Vietnam’s economic situation points out that to achieve its goal of becoming a high-income country by 2045, it needs to exploit its diversified services more effectively to sustain sustainable productivity growth. “It is necessary to implement reforms that enhance productivity in the service sector and make cross-sectoral contributions to productivity growth in the manufacturing and agriculture sectors,” he noted.
The 10th SIE and the 14th VME will take place in Hanoi from August 9-11 with the participation of over 200 manufacturers and distributors from 20 countries and territories, with the aim of boosting trade exchanges between businesses operating in Vietnam’s supporting industry and accelerating the development of the manufacturing and processing industry.
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