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  Cập nhật: 18/06/2017
The Collaboration to enhance localization, fortify supporting industry, grasp ITA

Hanoi, 15 June 2017 – the Japan External Trade Organization (JETRO) in Hanoi, and Reed Tradex Ltd, Co., today proudly hosted a press conference to announce the cooperation between both parties with the truly great support from government by the Vietnam Trade Promotion Agency (VIETRADE) and from a strong local association - the Vietnam Electronic Industries Association (VEIA), to launch “The 7th Vietnam - Japan Supporting Industries Exhibition”, co-located with “Industrial Components & Subcontracting Vietnam 2017” and “NEPCON Vietnam 2017”. All the parties have a mutual mission to offer the business opportunities and increase the localization index for the electronic industry and supporting industry in Vietnam and furthermore to grasp Information Technology Agreement (ITA) by WTO.

From 13 – 15 September, NEPCON Vietnam 2017 will repeatedly return to Hanoi with a focus on demonstrating SMT, testing technology, equipment. The leading technology providers of electronics industry as Techvalley, Sinfonia, Juki, Wkk, Sip, Hibex and Lintec will showcase their electronics manufacturing intelligence solutions on the show floor. In the conjunction with NEV17, the organizers Reed Tradex also focus on supporting industries for electronics manufacturing through “Industrial Components & Subcontracting Vietnam 2017” and co-located with “The 7th Vietnam - Japan Supporting Industries Exhibition” organized by JETRO in Hanoi. This is the ultimate sourcing platform where Japanese manufacturers meet Vietnamese parts makers to tighten business opportunities and relationships for active participants. These ‘trio’ exhibitions will “triple” business opportunities and increase the localization index for the electronic industry in Vietnam by over 200 leading brands, from 20 countries and covered 7 international pavilions from the leading technology countries as Japan, Korea, China, Singapore and Taiwan.

At the press conference, Mr. Suttisak Wilanan, Deputy Managing Director of Reed Tradex – the organizer of “NEPCON Vietnam (NEV) 2017", shared his positive belief on the Vietnam’s capability and potentials “Imports have nearly tripled from 2011 to 2016, while exports have increased by nearly 5 times — rising from US$12.8 billion to US$65.8 billion in 2015. At the beginning of 2015, Vietnam is the 12th largest electronics exporter in the world and the 3rd largest in ASEAN, but at this rate, it is expected to climb up the list very quickly. In fact, Vietnam has already surpassed the goal of US$40 billion in electronic exports by 2017.”

Chairman of Vietnam Electronic Industries Association (VEIA), Mr. Luu Hoang Long gave the positive view, but also challenging for electronic industry “With its geographic advantage as the center of ASEAN and the bridge of the Indo-china to the world, Vietnam is becoming a fascinatingly new manufacturing center with educated labor source and lower wages than Indonesia’s and only one half of Thailand’s”, he also added more , “In the recent year, export of mobile phone and phone components always hold highest density in all exporting products of Vietnam which highly contribute to Vietnam’s trade balance and reduce trade deficit. Nonetheless, in the total exporting mobile phone and components 2016 worth USD 34.3 billion, FDI enterprises controlled 99.8% worth USD 34.2 billion.”

Mr. Suttisak Wilanan underlined the need of enhancing localization in the integration process “As a member of World Trade Organization, Vietnam is also a participant in the Information Technology Agreement or ITA, and has a potential to take more advantages from the expansion of ITA. In order to do that, the country needs to raise productivity, move up the value chain and increase localization. Currently, the foreign enterprises represent just one-third of electronic enterprises in Vietnam, but they are accounted for 90% of the nation’s total electronic export turnover and hold 80% of the local market share.”

As the co-organizer of The 7th Vietnam - Japan Supporting Industries Exhibition”, Mr. Hironobu Kitagawa , Chief of Representative of JETRO in Hanoi, also saw the low localization rate of raw materials, materials and components is inhibiting Vietnam’s growth

“The localization level of raw materials, components and components of Japanese enterprises in Vietnam is very low, only 34%, while China’s is 68%, Thailand’s is 57%. Therefore, businesses are forced to import from neighboring countries such as Thailand, China. This is the cause of increased costs and risks for businesses”

Moreover, Vietnam is in the competitive world where the nation needs to raise up the capability and complete the full supporting industry chain, Mr. Luu Hoang Long added more "India has been Vietnam's biggest competitor in attracting foreign investment, since India applies 2-level incentive from both government and states. With the advantage of low wages, a high-tech industry, India still holds the position of "Silicon Valley" of Asia."

At the event, Mr. Bui Huy Son, General Director, the Vietnam Trade Promotion Agency pointed out “In the process of industrialization and modernization, supporting industries play a very important role, creating the basis for development and growth of a highly competitive and sustainable industry.”

Mr. Suttisak Wilanan also proud shared that the government has strongly fortified support industries for production chain “The government has a 10-year plan to assist firms in the supply sector in their research and development, technology transfers and renewal, as well as in human resource training to better participate in the global production chain, and promote foreign direct investment in the industry.”

At NEV17, Reed Tradex has gladly collaborated with JETRO in Hanoi to boost the development of supporting industries in Vietnam in order to complete the full production chain for electronics manufacturing industry, as well as creating a commercial connection environment between Vietnamese suppliers and Japanese buyers.” Mr. Hironobu Kitagawa stressed “To improve cost competitiveness and to ensure a stable supply of supplies and components, finding a local technology partner is still the most important issue.” He also believed “Japanese enterprises can establish long-term relationships with local businesses while minimizing cost and time costs”

All parties together have strongly encouraged and brought the concept of “localization fortifying supporting industry“ into the exhibition. Therefore, visitors this year will get to visit 3 exhibitions under 1 roof, and have the benefits to develop complete production lines as well as receiving more business from electronics manufacturing and supporting industries.

In addition to the technology, the organizer Reed Tradex are partnering with VEIA to prepare the content, activities, and education program that will inspire and enhance knowledge & industry networks.

To pave the way for higher demand in soldering skills and technology, the organizer excitingly revealed information about the program “Hand Soldering Championship”. This technical competition is an arena for contestants to compete in building a functional electronics assembly within a time limit.

There are numerous benefits and rich contents prepared for visitors by the organizer and partners at this year’s "NEPCON Vietnam (NEV) 2017", which runs 13 - 15 September, at Hanoi International Center For Exhibition (I.C.E., Hanoi), which is free-of-charge, is for trade professionals in electronic manufacturing industry.

Exhibitors and visitors can find news and regularly updated details about the event on the show website at: http://www.nepconvietnam.com/

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