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Japanese firms lament ‘passivity’ of could-be local partners 2009-11-03 - VNE
Japanese companies typically rely on a group of smaller companies to produce the parts they build into high-tech products, but they’re still finding it hard to find Vietnamese firms to fill that role. As a result, there’s little local content in many exports.
Japanese manufacturers and experts are saying that Japanese participants in a Japan-Vietnam roundtable last week said they’ve seen little change in the industrial infrastructure over the past ten years. It’s still the case that seventy to eighty percent of the components needed for manufacturing finished products are supplied by imports. “Local content” remains negligible in many sectors. Mitsuo Sakaba said he learned about the weakness of “Japanese companies told me the percentage of components supplied by Vietnamese manufacturers to Japanese companies was too low and that most of components must be imported. There are many things that need to be done to develop Dr. Nguyen Dac Hung of the State Bank of Clear directions and longer-term loans are key The Secretary General of the Vietnam Electronics Manufacturers’ Association, Tran Quang Hung, said that most of Vietnamese electronics manufacturers are small companies. They find it very difficult to meet with big foreign companies. But if they are successful, and get an order from a Japanese firm, the latter asks for all sorts of products and the companies are ‘embarrassed.’ “If the Japanese firms would give technical help, being very clear as to the amount and nature of the orders, both sides can get on well and benefit a lot,” said Hung. Other experts believe that the key problem behind the slow development of supporting industries is a lack of capital. Hung from the central bank said that in order to develop supporting industries, businesses need medium and long term capital, while banks only have short term capital to lend. Analyzing matters from a financial perspective, Hung said that the dong has weakened by nine percent against the dollar since late 2008. Because Vietnamese companies cannot pledge property when they seek loans, but must borrow money short-term to import materials, the exchange rate fluctuations are a real problem. Keinichi Ono of the Japan National Policy Research Institute sounded a gloomy note. Now that |
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