Vietnamese enterprises need more opportunities to get technology transfers from foreign investment activities and join ventures with foreign partners for sustainable development of the domestic industry.
A production line at Tien Thinh Production, Trading and Service Company Limited. Vietnamese enterprises need more opportunities to receive technology transfer from foreign investment activities.(Photo: VNA)
Technology is important in improving global competitiveness for local manufacturers in Vietnam, said BT Tee, General Director of Informa Markets Vietnam.
The domestic industrial sector, which contributes 50 percent of national GDP, has a strategic position in the sustainable development of the domestic economy and attraction of foreign investment.
Local enterprises must actively improve production scale and technology and connect with professional partners to develop the industry and participate in the global supply chain, said BT Tee.
To do this, some experts said local enterprises must overcome challenges in using data management systems. Vietnam’s industrial sector and domestic enterprises face many difficulties in digitising and connecting data of enterprises as well as applying technology and smart machines in production lines.
With the development of Industry 4.0 and globalisation, local businesses need to actively take advantage of opportunities to increase competitiveness, according to the experts.
The global free trade market requires domestic enterprises to invest in research and production of smart machines that are capable of competing in many markets but not just meeting demand in the domestic market.
According to the Japan Trade Promotion Organisation (JETRO)’s branch in HCM City, foreign direct investment (FDI) from Japan to Vietnam has increased significantly year by year, showing that the Japanese business community have always appreciated the Vietnam market and strived to seek opportunities for cooperation with Vietnamese enterprises, reported the Vietnam News Agency.
For the industrial sector, Japanese enterprises have advantages in equipment and machinery with modern production technology to increase productivity and reduce costs.
With entry into free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Vietnam-EU Free Trade Agreement (EVFTA), Vietnam is a potential market for foreign businesses in almost all fields.
According to Marko Walde, Chief Representative of the Association of German Chambers of Commerce and Industry (AHK) in Vietnam, the association wishes to connect businesses of the two countries, helping Vietnamese enterprises approach to new technologies and solutions in the manufacturing industry.
It will also help Vietnam improve its competitiveness and sustainable development as well as support businesses in meeting the regulations of Vietnam’s Government and the needs of modernising machinery and production lines for development of the domestic support industry.
Walde said for the manufacturing industry, effective exploitation of investment promotion channels and attraction of foreign capital is a challenge for both management agencies, as well as the business community.
According to the Ministry of Industry and Trade, the important issue for the domestic industry sector at present is to improve the low technical and technological level of enterprises. Statistics show that 59.6 percent of local enterprises use outdated technology and only 2 percent use high technology for production.
According to Vietnam's industrial development strategy up to 2025, Vietnam's industry will be more competitive and use modern technology, participate in global value chains in a number of specialties and fields as well as meet the basic requirements of the economy and export activities.
In addition, the Vietnamese mechanical industry is also oriented to develop with advanced technology, international quality products and deeper participation in the global value chain.