Efforts to attract investment and participate in the supply chain for Hanoi industry

Many enterprises in Hanoi are looking for opportunities to join the global supply chain. Photo: H.Diu

Location of investment choice

Mr. Nguyen Van, Standing Vice Chairman of Hanoi Supporting Industry Business Association (HANSIBA), assessed that the city's support policy for supporting industry had covered many areas from infrastructure, brand development, connecting scientific and technical applications, to supporting participation in trade and industrial promotion programs and industrial encouragement at home and abroad...

Thanks to that, Hanoi's supporting industry continuously increases in quantity, scale, quality, and field, focusing on three industrial groups: manufacturing components and spare parts; products serving the textile and garment - leather and footwear industries, products for high-tech industry, focusing on manufacturing industries. In addition, many multinational corporations have chosen Hanoi as a location to invest in facilities, factories and cooperate with enterprises.

Recently, after a period of surveying, researching, and preparing for investment, Inventec Group (IEC) - a Taiwanese (Chinese) enterprise decided to invest in building an Inventec Vietnam Factory in the Supporting Industrial Park. South Hanoi (Hanssip) with a total investment of first phase of US$ 125 million. Total design capacity for a stable production year is 32 million products per year, equivalent to 20,352 tons of products per year. It is expected that around the fourth quarter of 2024, the factory will go into operation and create job opportunities for 15,000-20,000 workers.

Mr. Yeh Li-cheng, Chairman and General Director of Inventec Vietnam Company, said that in the next stages, Inventec Group would develop to establish a fortification complex of invention research and production and technology sharing technology with IEC's global production chain for Vietnamese enterprises to participate. IEC currently used about 10-30% of auxiliary components products made in Vietnam, so it would increase the use of over 50% of components produced by Vietnamese enterprises, creating conditions for Vietnamese enterprises to develop together.

According to many assessments, Hanoi is a locality with a favorable investment environment for investors in the high-tech field. Furthermore, many FDI corporations and enterprises investing in Hanoi highly appreciate the improvement of the business investment environment of Vietnam in general and of Hanoi in particular, which has created favorable conditions for enterprises to develop.

At the end of June, N&G Group (Vietnam) and SEIN I&D Group (Korea) signed an investment cooperation contract to build the "Vietnam-Korea Techno Park Complex" in Hanoi. The Vietnam-Korea Techno Park complex has a scale of 200 hectares with production zones, research and development (R&D) areas, housing areas, logistics areas...

Hanoi's goal is to strive to attract US$ 30-40 billion of foreign investment capital; Disbursed capital reaches US$ 20-30 billion in the period 2021-2025. Experts assess that with registered FDI capital of over US$ 33 billion by the end of 2022, it is likely that Hanoi will exceed the set target.

Let the policy "permeate" effectively

However, according to the assessment of the Hanoi Department of Industry and Trade, the supporting industries of Hanoi in particular and the country in general were formed and developed later than other countries in the region, so they revealed many shortcomings. Specifically, domestic supporting industry products were still simple with medium and low technology content, and small value in the product value structure. Currently, the localization rate of the automobile industry was about 5-20%; electronics 5-10%; footwear, textiles 30%; mechanical manufacturing localization rate was about 15-20%. The localization rate was low, so the annual volume of components imported to Vietnam for assembly, manufacturing, and production for export reached tens of billions of dollars. Particularly, imported components products in the electronics and automobile industry were about US$ 35-50 billion.

Furthermore, according to enterprises, Hanoi still lacks policies to support financial and technological resources for them in producing components and spare parts with high technology content and complex techniques. This leads to many obstacles in the process of participating in the global supply chain for enterprises.

Therefore, according to Mr. Nguyen Van, a necessary and sufficient factor for industrial production and business activities was a specific policy mechanism. Besides, there is standard land infrastructure for foreign enterprises. They also wanted to access financial resources and business capital to purchase machinery and equipment...

​In fact, Hanoi has an orientation to develop the supporting industry by hiring consultants to provide technical support to supporting industrial enterprises in various industries, fields, and production items of priority product products. Along with that, there are many activities to support enterprises in production management, trade... participating in helping them improve their supply capacity for domestic and foreign markets. In addition, the city also supports enterprises to receive and transfer advanced and modern technology; buy copyrights, patents, software; research, develop, apply, transfer and innovate technology in trial production of components, spare parts, raw materials...

Therefore, enterprises expect that these policies will be increasingly implemented effectively and quickly "permeate" businesses to bring the best results in the coming time, thereby attracting more investment projects with High quality, high value.