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Tuesday, October 26, 2021

Opportunities arise for local supporting industry firms to join global supply chains

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HCMC – Local supporting industry enterprises are seeing ample opportunities to become part of global supply chains and suppliers of the world’s leading brands and multinational groups, it was announced at a conference in the framework of SFS 2020, or the sourcing fair for supporting industries with buyers 2020, held in HCMC on September 17.

Panasonic, a major Japanese multinational electronics company, is planning to start its new factory in Binh Duong Province this month or in early October, so its demand for suppliers of components and accessories is high.

Speaking at the conference, Hoang Thu Thuy, head of the Global Procurement Group at Panasonic Vietnam, said that Panasonic products manufactured in Vietnam are diverse and range from television sets, air-conditioners and refrigerators to electric home appliances, thus opening the door wide for qualified local suppliers for supporting industries.

“There will be opportunities for foreign firms and local enterprises alike,” said Thuy, adding that these firms must meet all the requirements set by Panasonic on the quality of products.

Aside from this, Techtronic Industries Co. Ltd (TTI), a power tool and electronic equipment manufacturer headquartered in Hong Kong, is seeking 200 local suppliers to serve its US$650-million factory project at the Saigon Hi-Tech Park (SHTP).

Besides Panasonic and TTI, many foreign direct investment firms attending the event are also looking for local suppliers.

Le Bich Loan, deputy head of the SHTP management board, said that apart from the participating foreign firms, many investors and other foreign enterprises are seeking Vietnamese suppliers for supporting industries, especially since the coronavirus pandemic has been brought under control in the country.

“This is a big chance for Vietnamese suppliers that has never been seen before,” Loan said, adding that a number of FDI firms from the United States and Europe have faced an interruption in supply sources from other foreign countries and are seeking local suppliers as an alternative option.

Many firms at the hi-tech park have received offers from foreign firms to become suppliers, Loan said.

However, Le Nguyen Duy Oanh, deputy director of the HCMC Center of Supporting Industries Development, said that as most supporting industry firms in Vietnam are small and operate at low capacity, it is not easy for them to seize such a chance without undergoing several changes.

SFS 2020, co-organized by the HCMC Department of Industry and Trade and the HCMC Export Processing and Industrial Zones Authority and the SHTP management board, was aimed at helping local manufacturers and supporting industry enterprises connect with domestic and foreign partners and gradually participate in global value chains.

By Hung Le

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