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Vietnam works to boost international integration of part suppliers

Illustrative photo (Source: VNA)

Vietnam has worked to raise the number of local part suppliers in the global supply chains, aiming to have about 1,000 enterprises capable of supplying directly to assembly enterprises and multinational corporations by 2025.

Statistics from the Ministry of Industry and Trade show that Vietnam now has close to 2,000 part suppliers. However, only 300 firms are in the supply chains of multinational groups.

To develop the industry, the Government has to date issued several documents to create a favourable legal framework, including Decree 111 in 2015 on the development of support industry, and the Prime Minister’s Decision 68 dated January 18 in 2017 that approved a development programme for the sector during 2016 – 2025.

Most recently, in 2020, Prime Minister Nguyen Xuan Phuc signed Resolution 115 on measures to further propel the industry, setting out development goals for the next decade.

According to the resolution, Vietnamese enterprises will be able to produce highly competitive supporting industrial products, meeting 45 percent of the essential needs for domestic production and consumption, accounting for about 11 percent of the industrial production value by 2025.

About 1,000 enterprises are expected to be capable of supplying directly to assembly enterprises and multinational corporations, of which domestic enterprises account for about 30 percent by 2025.

By 2030, supporting industrial products will meet 70 percent of the demand; accounting for about 14 percent of the industrial production value. About 2,000 firms will be capable of supplying directly to assemblers and multinational corporations in the territory of the country by 2030.