Bags / Shoes & Accessories

According to a report by Vietnamese media on July 12, the development of supporting industries in Vietnam is relatively lagging behind, the self-sufficiency rate of raw materials and components is low, and it is heavily dependent on imports. At present, the self-sufficiency rate of textile and footwear raw materials is about 40-45%, the self-sufficiency rate of auto parts with less than 9 seats is about 10-20%, the self-sufficiency rate of electronic, computer and communication equipment parts is about 15%, and the high-tech special electronic equipment parts and components are about 15%. The self-sufficiency rate is about 5%. Many foreign-funded manufacturing enterprises have proposed to the government that, in the current unstable international supply chain, they hope to find raw material suppliers in Vietnam to ensure stable production and order fulfillment. Ho Chi Minh City, Binh Duong, Dong Nai and other places in southern Vietnam focus on attracting foreign investment, focusing on the development of textiles (yarns, fabrics), machinery (metal products, automobile production equipment and parts), power electronics (electronic parts, wires and optical cables), etc. Supporting industries to improve the localization rate of processing and manufacturing industries. To this end, Binh Duong Province has established an industrial zone with an area of more than 1,000 hectares, giving priority to attracting foreign investment in supporting industrial projects. At present, South Korea's Kolon Group has invested in the production of automobile airbags and other products in this industrial zone, providing supporting facilities for automobile enterprises, with a total investment of 1 billion US dollars. Tetra Park is also investing in the production of food packaging products in Binh Duong province, with an investment of US$124 million.

According to the report, driven by foreign investment, the quality of some supporting industrial products in Vietnam has been significantly improved, including various molds, bicycle and motorcycle parts, standard mechanical parts, rubber and plastic parts, various tires, etc., which have been exported to Japan, etc. Many countries participate in the international supply chain. At present, the number of supporting industrial enterprises in Vietnam accounts for about 4.5% of the processing and manufacturing enterprises, employing about 600,000 people, accounting for about 8% of the total number of processing and manufacturing workers. But at the same time, Vietnam's supporting industries are still facing a shortage of high-tech talents and lack of information on foreign raw material suppliers.