Hanoi (VNA) - Vietnam needs to strengthen its supporting industries, in the context that it is increasingly enhancing its position in the global manufacturing sector, Deputy▨ Ambassador of Japan to Vietna𝓰m Watanabe Shige has said.

The diplomat made the statement while attending the 10th Vietnam - Japan Support Industries Exhibition (SIE) and the 14th Vietnam Manufacturing Expo (VME) which opened in Hanoi on August 9. According to him, if the supply of raw materials and accessories is stable, it will increase flexibility in supply, reduce costs, and improve capacity for the supporting industry in Vietnam, thus contributing to the development of the domestic manufacturing industry. The Japanese Government and businesses have been giving the best assistance to Vietnam's supporting industry, he said, adding that Japanese enterprises investing in the Southeast Asian nation expect to improve technology and enhance quality management for Vietnamese counterparts. Many Japanese companies are focusing their attention on Vietnam as an indispensable link in their supply chains, he said. This is a result of Vietnam’s industrial development, diligent and skilled workforce, and substantial efforts by the Vietnamese Government agencies to improve the business and investment environment, as highlighted in the Vietnam-Japan Joint Initiative over the past 20 years. Do Thang Hai, Deputy Minister of Industry and Trade, said the supporting industry plays a significant role in economic restructuring towards industrialisation and modernisation. It contributes to enhancing workplace productivity, competitive capacity, and value creation, and increasing the contribution of the manufacturing and processing industry to the economic structure. SIE is among the most important trade and investment promotion activities, contributing to exploring cooperative potential between Vietnamese and Japanese enterprises in the supporting industry. It also provides practical opportunities for Vietnamese enterprises in the industry to learn about new market trends and technological innovations and to directly engage with potential partners from Japan and the world. This process contributes significantly to the strong and sustainable transformation of the supporting industry in Vietnam, he said. The year 2023 marks a new era, with constant changes in the economy, characterised by monetary policies from developed countries and growth pressures following the pandemic, which have stimulated the process of enhancing business operations and optimising resources for both global and local enterprises. Challenges arising from the global economic instability include flexible forex rate policies and strict regulation and supervision of the financial system. The trend of shifting production markets from China, Taiwan (China), and Thailand to Vietnam promises to create investment opportunities and cooperation for companies in the manufacturing, the industrial sector, and supporting industries. In this context, SIE and the VME will strengthen trade relations between businesses in Vietnamese and Japanese supporting industries and to promote the robust development of these sectors in Vietnam. The three-day event, jointly held by RX Tradex Vietnam, the Japan External Trade Organisation (JETRO), and the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, is expected to see the participation of over 200 manufacturers and distributors from 20 countries and territories. Many activities will be arranged to support businesses and visitors in connecting with agents, distributors, and business partners within the framework of the events. Chief representative of JETRO Office in Hanoi Takeo Nakajima said that 22 Japanese firms have expressed their desire to buy goods from local manufacturers while 28 Vietnamese manufacturers have displayed their products and introduced their supply capabilities to Japanese businesses. Through these exhibitions, JETRO wishes to contribute to the development of the supporting industry in Vietnam, and assist Japanese businesses in seeking suitable suppliers, he said./.