Foreign mechanical engineering businesses are eyeing the Vietnamese market, on which machinery and equipment imports reach roughly 15 per cent yearly.
The country for the first time hosted French businesses studying the local mechanical engineering industry. The French Trade Office (Ubifrance), which organised the trip, said the French firms would visit leading mechanical engineering groups and companies to seek co-operative opportunities.
In another move, 10 machinery and equipment producers from Germany, the US, South Korea, Britain and Italy are displaying products at an exhibition in the capital aimed at sourcing Vietnamese customers.
The Government has so far shown priority towards growth of the mechanical engineering sector to serve industrialisation and development targets.
Last year, the country's import value in machinery and equipment reached US$20 billion, equal to roughly 14 per cent of total import turnover. While market size remained small, a growth rate of 13 per cent revealed a positive outlook.
Chairman of the Viet Nam Association of Mechanical Engineering Nguyen Van Thu said the country planned to invest in the construction of coal-fired and hydro power plants with total capacity of 108,100MW from now to 2025. Investment will also be focused on alumina production plants, expected to churn out roughly 15 million tonnes by 2025. Thu said total capital investment for such plants was estimated at roughly $100 billion.
If including chemical, construction and other industries, total investment capital would reach about $250 billion, he added.
Moreover, Deputy Chairman of the National Assembly's Economic Committee Nguyen Duc Kien noted that if the country implemented its $60 billion high-speed railway project, it would encourage the development of many industries, especially the metallurgical, mechanical engineering and automation industries.
However, to enter the potential market, the world's industrial giants will have to compete against Chinese counterparts. According to a study by the Centre for Economic Policy Research, China is Viet Nam's largest machinery and equipment supplier, accounting for up to 30 per cent of the country's total import turnover. But the chance for the world's industrial giants to gain a market share in Viet Nam remains open as most Chinese products are low-tech.
Ubifrance said French companies expected to enter Viet Nam's mechanical engineering market as the country would surely enhance quality and productivity through the import of modern machinery and equipment from the world's major industrial countries in order to meet its target of becoming an industrial nation by 2020.
|< Prev||Next >|
» Typhoon Haiyan victims return home from Philippines
» U.S. House passes bill authorizing $633 billion in defense spending
» Samsung moves its factories from China to Vietnam
Latest Category Posts
- Apparel exports to the US likely hit 8.5 billion USD
- Quy Nhon port receives 6.5 million tonnes of goods in 2013
- Quang Ninh hosts int’l tourism, trade fair
- BOT contract signed for Vinh Tan 1 thermoelectric plant
- Vietnamese enterprises to receive a better financial climate: experts
- Heavy discounts boost auto sales in Vietnam
- Tay Ninh reaps benefits from large-scale field model
- One-week term transactions overwhelm interbank market
- Trading values surge nationwide
- PM forges deeper Vietnam-Japan economic ties
Random Category Picks
- HCM City aids struggling co-operatives
- Company directors say higher pay would lead to better performance
- Singapore paper: Vietnam’s aviation industry takes off
- Airlines fight over qualified workers in aviation boom time
- Aeon to open 4 shopping centers in Vietnam
- Seafood producers hit by VAT issues and import duties
Popular Category Posts
- More FDI flows into science-technology
- Restoring order in shrimp material export: An urgent need
- Ornamental fish make profit splash
- Competent agencies’ delays harms jewelry industry
- Vietnamese rice exporters seek ways to boost sales
- Health Ministry tries to keep a rein, but formula milk price remains restive
- Chinese or American?
- Airlines spent big money to upgrade fleets
- FDI businesses continue production despite losses
- Foreign investors eyeing Vietnamese power sector
- Hanoi moves to stabilise price of consumer goods
- Japanese outfits eye HCM City's attractive semiconductor sector
- Golf project scorecard leaves numbers par for the course
- Bad debt settlement: do it yourself
- Vietnam Airlines releases tickets ahead of Tet
- Hai Phong attracts new FDI projects
- Rising food prices limit buyer choices
- Power market’s low competition
- HCM City focuses on business sector boost
- Rubber exports stretch to fetch $4.5 billion in 2013