HCM City authorities want local firms to join global supply chains - HCM City authorities want local firms to join global supply chains - Website Ho Chi Minh City
Only 15 percent of around 8,000 manufacturing companies in HCM City are capable of joining global supply chains but authorities are trying to increase the number.
“The status of HCM City manufacturing enterprises in global supply chains is also low, mostly third or fourth level providers,” Nguyen Phuong Dong, director of the city’s Industry and Trade Department said.
However, some of them are good enough to supply companies like Samsung, Sanyo, Toyota, Honda, and Intel.
For instance, Minh Nguyen Ltd Company and Lap Phuc Ltd Company supply many items to Colgate and Thuan Viet Ltd company manufactures parts for Japanese motorcycle producers.
“Diversifying supply sources will help companies reduce risks related to production,” Hoang Tho Vuong, director of the HCM City Support Industry Development Centre, was quoted as saying by Sai Gon Gia Phong (Liberated Saigon) newspaper.
In December the centre, in cooperation with the Korean Association of Machinery Industry and HCM City Association of Mechanical – Electrical Enterprises (HAMEE), will organise the International Exhibition on Industrial Machinery and Equipment in Vietnam with 350 companies from the Republic of Korea, Japan, Taiwan (China), and Europe taking part.
The event will focus on industrial and supporting industry products, the city’s key industrial products and its supporting industries’ specialties.
“There will be around 200 kiosks displaying accessories and equipment for supporting industries made by local enterprises,” Vuong said.
Do Phuoc Tong, chairman of HAMEE, said: “Through the exhibition, accessories and equipment made by local enterprises will be introduced to major foreign manufacturers.”
He warned that to become a high-level supplier of global enterprises, local enterprises must meet all international quality and price requirements.