Reed Tradex launches new alliance to promote supporting industries

The alliance seeks to tighten relations between Vietnam and Japan

Reed Tradex has recently unveiled its alliance with Japan External Trade Organisation (JETRO) in Ho Chi Minh City, Investment & Trade Promotion Centre (ITPC), as well as Ho Chi Minh City Centre of Supporting Industries Development (CSID) to co-organise the "Supporting Industry Show 2018” in Vietnam in October.

Suttisak Wilanan, deputy managing director of Reed Tradex, expressed his optimism about the exciting rebound of the automotive industry in Vietnam, citing the Vinfast “Made in Vietnam” automobiles, which has decided to cooperate with Italy’s leading design firm Pininfarina and German luxury car company BMW. At the same time, Thaco also inaugurated the biggest and most modern automobile manufacturing factory in Southeast Asia last March, with a view to dominate the automobile industry.

“More than ever, car firms need to support and call on supporting industry businesses to supply the necessary components," he insisted. "There are over 30,000 parts in a vehicle, it is almost impossible to manufacture all components in the same country. That is why investors tend to establish factories in neighboring countries, surrounding their manufacturing base. Vietnam is in a strategic location, located in the centre of ASEAN, with many major seaports. Therefore, Vietnam can coordinate with key players like Thai and Indonesian car makers to set up a sustainable development cluster for the automobile industry."

According to data from the Ministry of Industry and Trade, the total number of enterprises currently involved in the supporting industry sector is 661. However, only a few domestic enterprises are capable of joining the supply chains of foreign companies.

Therefore, the new alliance is expected to empower the transfer of new technologies and the expansion of business networks between Japanese and Vietnamese businesses, which are vital to sharpen the competitive edge of the supporting industry.

Takimoto Koji, chief representative of JETRO in Ho Chi Minh City, shared that, “Vietnam’s local procurement ratio was 33.2 per cent in 2017. It is the lowest among the six countries in the survey. With the “Supporting Industry Show 2018,” we aim to raise the local procurement rate by connecting companies at the exhibition.”

To create “win-win relationships” between Japan and Vietnam at "Supporting Industry Show 2018,” there will be 18 Japanese major companies joining as buyers. Another 30 Vietnamese companies will exhibit as suppliers, lead by ITPC and CSID.

The "Supporting Industry Show 2018” will be organised on October 11-13 at Saigon Exhibition and Convention Centre. At the same time, “METALEX Vietnam 2018" will gather and introduce 500 brands of the latest machine tools and metalworking solutions from over 25 countries. The exhibition is expected to be more comprehensive with the co-location of “NEPCON Vietnam 2018” which will be a platform for electronics manufacturers to meet with providers of technologies and solutions from 200 brands of 20 countries.