Construction of an auxiliary industrial park for steel industry.

If coming into operation, for the first time, Vietnam has an industrial zone specialized in stamping and casting to support the iron and steel industry. According to the Ministry of Planning and Investment, recently Chairman of Takako Vietnam Co., Ltd. – Ishizaki Yoshitomo has there was a meeting with Minister Bui Quang Vinh on the construction of auxiliary and stamping industrial zone. Takako is one of Japan’s largest industrial and electronic equipment manufacturing companies.
Mr. Yoshitomo said that currently companies in Vietnam have produced iron and steel, but using iron and steel to produce, cast, put out parts, they cannot do so, they still have to import from Taiwan, Korea, Japan … Therefore, specific strategies need to be prioritized to develop this sector to attract more investors. If successful in the stamping and casting industry, Vietnam can meet domestic and even Southeast Asian market demand, this share.
Before the proposal from Japanese investors, Minister Bui Quang Vinh supported this initiative because the supporting industry sector is “particularly interested”. Vietnam will create conditions for Takako to build an industrial zone and propose a number of positions such as Thai Nguyen, Quang Nam, Quang Ngai, Binh Duong, and Ho Chi Minh City, the Minister informed. However, he also emphasized Takako needed must attract investment, maintain operations in industrial zones, because this is the “difficult problem”.
In 2012, Japanese businesses poured $ 4.2 billion and maintained the leading position among countries investing in Vietnam. Lack of supporting industries, low localization rate is a factor that hinders foreign investment attraction. The report of the Japanese Chamber of Commerce (JETRO) said, the localization rate of materials and components Japanese companies in Vietnam are nearly 28%, lower than the average of 48% of Asian countries. This makes investors have to import more materials and parts, resulting in higher production costs in Vietnam. Agreeing with this view, Mr. Motonobu Sato – Chairman of the Association Japan (JBA) in Vietnam warns that the lack of supporting industries is making Vietnam less attractive than other countries. For example, in 2012, Japan invested 13 billion USD in Thailand, 3 times the investment in Vietnam, this information.
Mr. Sato shared that Vietnam’s small and medium-sized manufacturing enterprises account for only about 30%, while Japanese enterprises want to import more components and materials from the domestic supporting industry. . Therefore, representatives of Japanese enterprises asked Vietnam to provide more financial, human and material support to help the supporting industry develop.