4 MEGA EXHIBITIONS KICK-OFF TO OPEN NEW OPPORTUNITIES FOR MANUFACTURING INDUSTRY

[06-10-2016] October 6th marks the grand return of four mega exhibitions “METALEX Vietnam 2016,” “Business Alliance 2016 for Supporting Industry,” “NEPCON Vietnam 2016,” and “Industrial Components & Subcontracting Vietnam 2016”.

The opening ceremony has again kick-off the continuous supporting from the Asean’s leading exhibition organizer – Reed Tradex to Vietnam’s manufacturing industry which is also emphasized by the cooperation among the organizer and Japan External Trade Organization (JETRO), Investment and Trade Promotion Center (ITPC), as well as other domestic and international trade promotion organizations.

Vietnam’s is seeing a major new development that will make the country more interesting for foreign investors, it is becoming a determined participant in the global economy by engaging in Free Trade Agreements (FTAs). Furthermore, Vietnam is the only country from the ASEAN that signed an FTA with the Eurasia Economic Union (Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan). Moreover, the strategic position where is at the middle of the ASEAN allows companies operating in Vietnam easier integration into existing regional and global supply chains. Besides, sea ports in Northern, Central and Southern Vietnam allow accessible and practical shipment to any part of the world. The future of the industry depends on its ability to embrace the new investment landscape, adapt suitable technologies and drive efficiency.
 Known as an annually outstanding exhibition focusing in manufacturing industry for a decade, Metalex Vietnam 2016 marks its return as a comprehensive platform for industrialist by providing relevant and specific industry intelligence in term of technology, machinery, and networking.

 In celebration of 10th anniversary, Mr Isara Burintramart, Managing Director of Reed Tradex Co., Ltd. shared the point of view referring to 10 years development of Vietnam’s manufacturing industry that  “Vietnam saw a considerable surge in foreign direct investment (FDI) flow over the past 10 years and it's expected to be on the rise. Vietnam's outstanding growth performance at 6 per cent in average during the world's slowdown period (2011-2015) and successful join important FTAs (TPP, AFTA, EVFTA, etc) couldn't be separated from its attractions to foreign investors. During 10 years development, Metalex Vietnam has been aiming to provide industrialists the adequate preparations they need to thrive in the bigger competitive landscape. Metalex Vietnam has gained a trust as a Vietnam’s international exhibition which supports to bring unique opportunities for all participants to learn, source new machinery, and getting the latest development in metalworking.

However, accompanied with Metalex Vietnam, there is the opportunity for electronics manufacturers to witness the technologies at “Nepcon Vietnam”. Electronics is seen as a spear-head of Vietnam manufacturing sector in recent years. Several big multinational electronics enterprises such as Samsung, Intel, Microsoft, LG, Panasonic have transferred their operation partly or completely to Vietnam and invested billions of dollars in just a few years. As the only exhibition for electronics industry in Vietnam, it is the most effective channel for Vietnam manufacturers to see new SMT and machinery to ensure quality electronics parts is on parity with global standards.

In additional, over past 10 years, bilateral trade between Vietnam and Japan had experienced an impressive growth rate of 13.9 per cent annually, the latest report for the General Department of Customs revealed. There are 2,586 tax lines were to be removed immediately by Japan after the Vietnam-Japan Economic Partnership Agreements (VJEPA) took effect in October 2009, or 28 per cent of the total 9,390 lines committed. To serve the demand and support to build up stronger relationship between Japan-Vietnam companies, “Business Alliance for Supporting Industry” which is the right answer comes up from the cooperation among Japan External Trade Organization (JETRO), Ho Chi Minh City Office and Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC HCMC) and Reed Tradex.

Vietnam is becoming Asia's new manufacturing hub and has successfully transformed to be the most attractive investment destinations in the world thanks to its such comparative advantages as labor cost, tax incentives and favorable location in supply chain. The business opportunity will be enhanced even further at “Industrial Components & Subcontracting Vietnam,” the platform where parts makers and buyers can come to work together on the path to prosperity.

I am confident that the powers of 4 shows combine will foster better collaboration through the exchange of best practices among local and overseas delegates.
Furthermore, Reed Tradex has prepared concurrent activities to offer new knowledge and inspiration to participants for instance “Engineer Master Class,” “Technology Presentations,” “Shows in Show,” “Hand Soldering Championship,” and the long-awaited “Koma Taisen Competition.” All the activities are for participants to gain great ideas being shared in this annual gathering of industrial community.”

Mr Takimoto Koji, Chief Representative, Japan External Trade Organization (JETRO HCMC) spoke at the Opening Ceremony that “At present, the local procurement ratio of Japanese enterprises in Vietnam is still at very low level of 32 per cent compared to 56 per cent in Thailand, 65 per cent in China. I think the competitive capability improvement will be an urgent mission for assembled product manufacturers (set-makers) and a strong increase of local procurement ratio will become an important key to success for Japanese companies before 2018 ASEAN economic integration and Vietnamese tax abolition. This year, Jetro will continue cooperating with Reed Tradex to organize “Business Alliance for Supporting Industry in Ho Chi Minh City 2016”, in which it will have 65 booths in which 50 booths are given to Vietnamese local companies as our contribution to the development of Supporting Industry of Vietnam.

This exhibition is organized as a part of Economic Cooperation based on Japan Vietnam EPA. dIt is not only an exhibition for supporting industry which has been carried out so far with many cooperative enterprises but also an exhibition focusing on 14 big set-makers as a hub of Japanese buyers to make our business matching more efficiently. I also believe that a cheaper price and better quality and strictly on-time delivery are required from a new transaction.

After this exhibition, set-makers will send many requests on “Factory visit”, “Sample making” etc. to potential suppliers. The Supporting Industry of Japan used to clear these requests one by one and improved its capability to become developed as today. I expect this exhibition will give all companies present here a great chance as well as the Supporting Industry of Vietnam is expanded and successfully developed with Japan.”

Mr Pham Thiet Hoa, Director, Investment & Trade Promotion Center (ITPC) shared that:
“Developing supporting industries has been considered as one of the most prior policies of Vietnam in order to promote the development of industries, and help to boost the process of industrialization - modernization of the country. In the master plan for developing supporting industries by 2020, with a vision to 2030 approved by the Ministry of Industry and Trade, Vietnam has focused on metal, plastic - rubber, electrical – electronics parts and components and the supporting industrial sector for high technology industry. The target for supporting industry is to meet 60 per cent of demand for industrial parts and components in 2020, and increase to 80 per cent in 2030.
Export Processing Zones & Industrial Parks in Ho Chi Minh City now have got about 260 FDI enterprises in supporting industry, accounting for over 50 per cent of the total FDI companies. These companies mainly produce for: electronics, mechanical, automotive industries... Their products are mainly exported to overseas in order to implement the next process of the global supply chain. Most of materials, components and parts are imported from abroad, this shows that the connection and co-operation between local enterprises and foreign invested enterprises are still limited.

Therefore, in order to promote the development of supporting industries in Vietnam in general and Ho Chi Minh City in particular, Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) and the Japan External Trade Organization (JETRO) co-organized the exhibition “Business Alliance for Supporting Industry 2016”. With this goal, we hope that the exhibition this year will gain great success to help domestic and foreign enterprises meet the reliable and potential partners.”

Mr Le Thanh Liem, Vice Chairman, Ho Chi Minh City People’s Committee emphasized again that: “The city identified developing supporting industry plays an important role in improving the localization rate, increase the value and competitiveness of industrial products, reduce trade deficit, increase the ability to attract foreign investment and facilitate development of small and medium-sized businesses, and is considered as breakthrough solutions to innovate investment structure, improve the quality of economic growth, competitiveness, shifting economic structure of the city from the width to depth.

In recent years, to promote supporting industry, becoming a driving force for economic growth, the city has established Ho Chi Minh City Center of Supporting Industries Development, Ho Chi Minh Products Galleries of Supporting Industries; constructed  high-rise zoning workshop scale area, which rents in line with the needs of small and medium enterprises (less than 500m2 / batch) in Tan Thuan Export Processing Zone, Hiep Phuoc Industrial Zone; additional projects supporting industry to stimulate investment programs; additional content in the promotion, calling for investment in the industrial sector support; issued plans to support industrial development associated with small and medium-sized enterprises in the city over the period 2016-2020; issued plans to support domestic enterprises to meet the requirements of Samsung Group; organized supply - demand among industrial enterprises and enterprises to support the production of finished products; capital support to businesses through bank linkage programs - business; deployed model train industrial human resource support in the form of linkage between the Institute, Ho Chi Minh City Center of Supporting Industries Development....

However, the results in just the beginning, each day the city is stepping up the link between investors in the High-Tech Park and the industrial production of domestic support, and actively support to domestic enterprises can afford to provide supporting industries products for foreign corporations with multiple mechanisms and policies from trade and investment promotion, connecting supply and demand, credit support, corporate governance , corporate training, supporting advanced technology innovation, equipment to meet integration requirements.

These today events are a first step to realize the Party Congress resolutions City Times tenth and specified developing supporting industry scheme in the period of 2015 - 2020 and  oriented 2025, at the same time this exhibition is a great event of supporting industry and is seen as an exhibition specialized in supply grade components and unique parts in Vietnam..”

Mme. Ureerat Ratanaprukse, Consul-General of Royal Thai Consulate-General, Ho Chi Minh City give the congratulations on the 10th anniversary of METALEX Vietnam, and emphasized 40th anniversary of official diplomatic relations between Thailand and Vietnam that

“For many years, Trade exhibition has served as one of the highly effective tools for stimulating business between Thai and Vietnamese entrepreneurs. It is noteworthy that the trade and investment between Thailand and Vietnam increase every year. In 2015, the two-way trade grew 13.1 per cent to 12 billion USD, and in the first five months of this year, bilateral trade had reached 5.1 billion USD, with the mutual aim from both governments to raise this figure to 20 billion USD by the year 2020. It is therefore a great opportunity for industrialists in Ho Chi Minh City to attend the co-location of 4 powerful events during 6-8 October to source advanced machinery, learn about new industrial trends and discuss business at the same time.”

Established as the most influential exhibitions and conferences for manufacturing industry, “METALEX Vietnam 2016,” “Business Alliance 2016 for Supporting Industry,” “NEPCON Vietnam 2016,” and “Industrial Components & Subcontracting Vietnam 2016” has a longstanding track record of bringing together globally celebrated luminaries and experts to discuss challenges and opportunities in the industry sector, these exhibitions will host more than 500 leading brands and 10,000 industrialist from over Vietnam and abroad. The annual three-day event will take place from 6 – 8 October, 2016 at Saigon Exhibition & Convention Center (SECC).

Source: VCCI