Foreign Capital Actively Finds Its Way Into Manufacturing Projects

10/12/2021

The mechanical engineering sector accounts for a large proportion in the structure of investment attraction, but most of it comes from foreign direct investment (FDI) enterprises, while domestic enterprises suffer from inferiority.

Desire to cooperate, invest in production in Vietnam

Talking to a reporter of Online Investment Newspaper – Baodautu.vn, Ms. Jinying Zhang, General Director of Pigeon Company, a leading bicycle manufacturing enterprise in China, said that the demand for bicycles in the Vietnamese market is is very large, so her business not only introduces new products, but also wishes to cooperate and invest in production in Vietnam.

At the Vietnam Expo held in early December in Ho Chi Minh City, Pigeon Company brought 16 bicycle models and were ordered by customers. Only a few days later, the Company has a schedule to work with potential partners to discuss cooperation plans.

Although recently, Taiwan’s leading bicycle manufacturer (China) DDK Group has also started construction of a production complex in Binh Duong province, with an area of ​​about 80 hectares, but Ms. Jinying This will not greatly affect Pigeon’s plans in the Vietnamese market, Zhang said.

“Pigeon Company has production plants in 29 provinces in China, but does not have any production facilities in ASEAN. With good signals in the Vietnamese market, maybe here we will consider investing in a production plant,” said Ms. Jinying Zhang.

Mr. Yu Xue Jun, Chairman of Tian Jin Zheng Fang Company commented, the potential of the mechanical field in Vietnam is huge. Therefore, his company is planning to learn about the investment environment, investment incentive policies, etc. of this field. It is likely that businesses will choose Ho Chi Minh City to set up production bases. It is known that Tian Jin Zheng Fang is an enterprise specializing in the production of power transformers and the products manufactured by the company are now sold in the Vietnamese market.

Sharing at the Conference “Beijing, Tianjin, and Hebei Trade and Investment Promotion in Vietnam” just held in Ho Chi Minh City, Mr. Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry, Chi Ho Chi Minh City branch (VCCI HCMC) said that the recent increase in trade and investment cooperation between the two countries is the reason why many Chinese businesses come looking for opportunities in Vietnam. Previously, only southern Chinese enterprises went to Vietnam due to geographical proximity, now there are more enterprises in Beijing, Tianjin, Hebei (localities in the North of China) came to introduce new products, seek cooperation opportunities with Vietnamese enterprises.

Difficulties surround domestic enterprises

Mr. Do Phuoc Tong, Chairman of Duy Khanh Mechanical Co., Ltd. said that the company has just decided to invest in a project in Ho Chi Minh City Hi-Tech Park (SHTP) with a registered investment capital of 5.2 million USD, has the goal of making precision machines and molds.

Vietnamese enterprises are inferior when they have to compete with FDI enterprises with the same industry. FDI enterprises are much stronger in terms of financial potential, technology and management.

“Vietnam’s mechanical enterprises have a level that is not inferior to foreign enterprises, but only those who are really drunk with their jobs take risks to pour large capital into investment. Currently, there is still the “reverse” policy, which hinders and causes difficulties for the development of mechanical engineering enterprises, “said Mr. Tong.

Specifically, according to Mr. Tong, the import tax policy is making it difficult for businesses, when imported machinery (complete units) enjoy a tax rate of 0%, while the components and equipment that enterprises import to assemble and make that machine is subject to a tax of 10-15%. For example, for pharmaceutical machines, the import tax for complete units is 0%, but imported materials for assembling to make this machine such as stainless steel plates have a 10% tax, or automatic control components are not subject to tax. Import tax is 15%. This has pushed up input production costs of enterprises, leading to poor competitiveness with foreign products.

Another difficulty is that Vietnamese enterprises have to compete with FDI enterprises with the same industry in their “home turf”. Not to mention the fact that FDI enterprises are much stronger in terms of financial potential, technology, management … when investing in Vietnam, they already have customers, so they only care about production to supply.

For example, enterprises of Korea, Japan, … operating in the field of supporting industries (including many mechanical enterprises – PV) have recently invested in Vietnam a lot because before. There have been large corporations in their country to implement the project. These corporations will, of course, “favor” their country’s businesses, so it is difficult for any Vietnamese enterprise to enter.

Source: Baodautu

Share this post

You may be interested in

15/09/2022
Seminar: 3D Metal Printing
This special topic of “3D Metal Printing From Potential To Application Reality For...
28/07/2022
Many localities have a high index of industrial production
In the first 6 months of 2022, some localities had high industrial production index (IIP) compared...
10/05/2022
Expectation for the development of Vietnam’s automotive industry
The Vietnamese automotive industry has always been seen as a priority industry for development,...
10/05/2022
Ministry of Industry and Trade upholds the application of anti-dumping measures for alloy steel
On May 5, the Ministry of Industry and Trade issued Decision No. 843/QD-BCT on the application of...
10/05/2022
Domestic steel prices “dances” according to the world, what does Vietnam do to be autonomous?
Domestic steel prices fluctuate according to world prices, because most of the raw materials are...
10/05/2022
New strategic research for Vietnam’s automotive industry
Document No. 2506/VPCP-CN dated 21/4/2022 of the Office of the Government conveys the comments of...
10/05/2022
Building infrastructure for Hanoi Industry and Trade in a modern way
Hanoi Industry and Trade needs to review and build infrastructure in the direction of...
16/03/2022
Remove the quarantine order for international visitors entering Vietnam
The new policy was issued after Viet Nam fully resumed international tourism from March...
10/03/2022
Commencement of Nghi Son Steel Rolling Factory Project No. 2
Nghi Son Steel Rolling Factory No. 2, with a capacity of 3 million tons/year, total investment of...
09/03/2022
Steel price exceeds 18 million dong a ton
The price of construction steel in the domestic market of many enterprises has just been announced...

Subscribe to Our eNewsletters

    captcha
    Book a stand
    Online Registation
    Group Delegation Programme
    Facebook stream
    Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
    This message is only visible to admins.
    PPCA Error: Due to Facebook API changes on September 4, 2020, it will no longer be possible to display a feed from a Facebook Page you are not an admin of. The Facebook feed below is not using a valid Access Token for this Facebook page and so will stop updating after this date.
    6 months ago
    MTA HANOI

    Cùng MTA Hanoi Hưởng Ứng Giờ Trái Đất 2022
    [English below]
    Đồng hành với mục tiêu phát triển bền vững từ Informa Market, MTA Hanoi sẽ cùng chung tay với tất cả mọi người tham gia Giờ Trái Đất 2022, sự kiện hằng năm được Tổ chức Quốc tế về Bảo tồn Thiên nhiên (WWF) phát động. Với mục tiêu nâng cao nhận thức cộng đồng về biến đổi khí hậu và tiết kiệm năng lượng trên toàn thế giới, giờ Trái Đất 2022 không chỉ là một sự kiện mang tính biểu tượng, mà còn là thời điểm để tất cả mọi người cùng hành động vì trái đất của chúng ta. Hãy cùng MTA Hanoi tắt đèn từ 20:30-21:30 tối nay, thứ Bảy ngày 26/03/2022 và lắng nghe thông điệp hành động từ WWF toàn cầu trong Giờ Trái Đất 2022 nhé!
    ---------------------//
    Join MTA Hanoi To Respond To Earth Hour 2022

    Accompanying the sustainable development goal from Informa Market, MTA Hanoi will join hands with everyone to participate in Earth Hour 2022, the annual event launched by the World Wide Fund (WWF). With the goal of raising public awareness about climate change and saving energy around the world, Earth Hour 2022 is not just an event, but also a time for everyone to take action together for our earth. Let's turn off the lights with MTA Hanoi from 20:30-21:30 tonight, Saturday, 26/03/2022 and listen to the message from WWF during Earth Hour 2022!

    #earthhour #MTAHanoi #MTAVietnam #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    ...

    Cùng MTA Hanoi Hưởng Ứng Giờ Trái Đất 2022
[English below]
Đồng hành với mục tiêu phát triển bền vững từ Informa Market, MTA Hanoi sẽ cùng chung tay với tất cả mọi người tham gia Giờ Trái Đất 2022, sự kiện hằng năm được Tổ chức Quốc tế về Bảo tồn Thiên nhiên (WWF) phát động. Với mục tiêu nâng cao nhận thức cộng đồng về biến đổi khí hậu và tiết kiệm năng lượng trên toàn thế giới, giờ Trái Đất 2022 không chỉ là một sự kiện mang tính biểu tượng, mà còn là thời điểm để tất cả mọi người cùng hành động vì trái đất của chúng ta. Hãy cùng MTA Hanoi tắt đèn từ 20:30-21:30 tối nay, thứ Bảy ngày 26/03/2022 và lắng nghe thông điệp hành động từ WWF toàn cầu trong Giờ Trái Đất 2022 nhé!
---------------------//
Join MTA Hanoi To Respond To Earth Hour 2022

Accompanying the sustainable development goal from Informa Market, MTA Hanoi will join hands with everyone to participate in Earth Hour 2022, the annual event launched by the World Wide Fund (WWF). With the goal of raising public awareness about climate change and saving energy around the world, Earth Hour 2022 is not just an event, but also a time for everyone to take action together for our earth. Lets turn off the lights with MTA Hanoi from 20:30-21:30 tonight, Saturday, 26/03/2022 and listen to the message from WWF during Earth Hour 2022!

#earthhour  #MTAHanoi #MTAVietnam  #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAVietnam2022
    7 months ago
    MTA HANOI

    Hãy chắc chắn rằng bạn đã sẵn sàng với những bất ngờ sắp tới diễn ra tại MTA Hanoi 2022!

    TRIỂN LÃM VÀ HỘI THẢO QUỐC TẾ LẦN THỨ 8 VỀ MÁY CÔNG CỤ, CƠ KHÍ CHÍNH XÁC VÀ GIA CÔNG KIM LOẠI

    ⏰ 12-14.10.2022
    📍 ICE, 91 Trần Hưng Đạo, Hà Nội

    Vui lòng liên hệ Ban tổ chức để biết thêm thông tin chi tiết:
    ☎ (+84) 28 3622 2588
    📩 [email protected]
    --------------------
    Stay tuned for the upcoming interesting programmes at MTA Hanoi 2022. Can't wait to bring it out, are you excited!

    THE 8TH INTERNATIONAL PRECISION ENGINEERING, MACHINE TOOLS AND METALWORKING EXHIBITION & CONFERENCE

    ⏰ 12 - 14 October 2022
    📍 ICE, 91 Trần Hưng Đạo, Hà Nội

    Please contact us for more information:
    ☎ (+84) 28 3622 2588
    📩 [email protected]

    #MTAHaNoi #MTAHaNoi2022 #MTAVietnam #MTAVietnamserries #MTAVietnam2022 #ManufacturingExhibition #ManufacturingIndustry
    ...

    Hãy chắc chắn rằng bạn đã sẵn sàng với những bất ngờ sắp tới diễn ra tại MTA Hanoi 2022!

TRIỂN LÃM VÀ HỘI THẢO QUỐC TẾ LẦN THỨ 8 VỀ MÁY CÔNG CỤ, CƠ KHÍ CHÍNH XÁC VÀ GIA CÔNG KIM LOẠI

⏰ 12-14.10.2022
📍 ICE, 91 Trần Hưng Đạo, Hà Nội

Vui lòng liên hệ Ban tổ chức để biết thêm thông tin chi tiết:
☎ (+84) 28 3622 2588
📩 mtahanoi@informa.com
--------------------
Stay tuned for the upcoming interesting programmes at MTA Hanoi 2022. Cant wait to bring it out, are you excited!

THE 8TH INTERNATIONAL PRECISION ENGINEERING, MACHINE TOOLS AND METALWORKING EXHIBITION & CONFERENCE

⏰ 12 - 14 October 2022
📍 ICE, 91 Trần Hưng Đạo, Hà Nội

Please contact us for more information:
☎ (+84) 28 3622 2588
📩 mtahanoi@informa.com

#MTAHaNoi #MTAHaNoi2022 #MTAVietnam #MTAVietnamserries #MTAVietnam2022 #ManufacturingExhibition #ManufacturingIndustry
    7 months ago
    MTA HANOI

    Cùng đón chờ những chương trình hấp dẫn sắp diễn ra tại MTA Hanoi 2022! Bạn đã sẵn sàng với những bất ngờ sắp tới chưa?

    TRIỂN LÃM VÀ HỘI THẢO QUỐC TẾ LẦN THỨ 8 VỀ MÁY CÔNG CỤ, CƠ KHÍ CHÍNH XÁC VÀ GIA CÔNG KIM LOẠI

    ⏰ 12-14.10.2022
    📍 ICE, 91 Trần Hưng Đạo, Hà Nội

    Vui lòng liên hệ Ban tổ chức để biết thêm thông tin chi tiết:
    ☎ (+84) 28 3622 2588
    📩 [email protected]
    --------------------
    Stay tuned for the upcoming interesting programmes at MTA Hanoi 2022. Can't wait to bring it out, are you excited!

    THE 8TH INTERNATIONAL PRECISION ENGINEERING, MACHINE TOOLS AND METALWORKING EXHIBITION & CONFERENCE

    ⏰ 12 - 14 October 2022
    📍 ICE, 91 Tran Hung Dao, Hanoi

    Please contact us for more information:
    ☎ (+84) 28 3622 2588
    📩 [email protected]

    #MTAHaNoi #MTAHaNoi2022 #MTAVietnam #MTAVietnamserries #MTAVietnam2022 #ManufacturingExhibition #ManufacturingIndustry
    ...

    Cùng đón chờ những chương trình hấp dẫn sắp diễn ra tại MTA Hanoi 2022! Bạn đã sẵn sàng với những bất ngờ sắp tới chưa?

TRIỂN LÃM VÀ HỘI THẢO QUỐC TẾ LẦN THỨ 8 VỀ MÁY CÔNG CỤ, CƠ KHÍ CHÍNH XÁC VÀ GIA CÔNG KIM LOẠI

⏰ 12-14.10.2022
📍 ICE, 91 Trần Hưng Đạo, Hà Nội
 
Vui lòng liên hệ Ban tổ chức để biết thêm thông tin chi tiết:
☎ (+84) 28 3622 2588
📩 mtahanoi@informa.com
--------------------
Stay tuned for the upcoming interesting programmes at MTA Hanoi 2022. Cant wait to bring it out, are you excited!

THE 8TH INTERNATIONAL PRECISION ENGINEERING, MACHINE TOOLS AND METALWORKING EXHIBITION & CONFERENCE

⏰ 12 - 14 October 2022
📍 ICE, 91 Tran Hung Dao, Hanoi

Please contact us for more information:
☎ (+84) 28 3622 2588
📩 mtahanoi@informa.com

#MTAHaNoi #MTAHaNoi2022 #MTAVietnam #MTAVietnamserries #MTAVietnam2022 #ManufacturingExhibition #ManufacturingIndustry
    8 months ago
    MTA HANOI

    Kính gửi quý khách hàng,

    Chúng tôi rất may mắn khi có được sự ủng hộ và quan tâm quý vị. Cảm ơn đã luôn đồng hành cùng chúng tôi trong suốt năm vừa qua. Chúc cho năm sắp tới sẽ mang lại nhiều thành công và sức khỏe cho tất cả chúng ta. Chúc mừng năm mới!

    Trân trọng, BTC MTA Hanoi.
    ---------------------//
    Dear our valued customers,

    We are so lucky to have the most loyal and supporting from you. Thank you for being with us through the whole year. May the upcoming year bring the best success and health to all of us. Happy New Year!

    MTA Hanoi Organising Team.

    #happynewyear #MTAHanoi #MTAVietnam #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAHanoi2022
    ...

    Kính gửi quý khách hàng,

Chúng tôi rất may mắn khi có được sự ủng hộ và quan tâm quý vị. Cảm ơn đã luôn đồng hành cùng chúng tôi trong suốt năm vừa qua. Chúc cho năm sắp tới sẽ mang lại nhiều thành công và sức khỏe cho tất cả chúng ta. Chúc mừng năm mới!

Trân trọng, BTC MTA Hanoi.
---------------------//
Dear our valued customers,

We are so lucky to have the most loyal and supporting from you. Thank you for being with us through the whole year. May the upcoming year bring the best success and health to all of us. Happy New Year!

MTA Hanoi Organising Team.

#happynewyear #MTAHanoi #MTAVietnam #Manufacturing #Engineeering #MTAVietnamserries #MTAVietnamGoesHybrid #ManufacturingIndustry #MTAHanoi2022
    Load more