Local News

Opportunity for Vietnam Electronics and Supporting Industries

As the flagship trade show for the electronics industry, Nepcon Vietnam 2017 will return to Hanoi, marking 10 years in Vietnam, and will deliver to the market the new SMT & Testing Technologies and Supporting Industries for electronics manufacturing.

“Industrial Components & Subcontracting Vietnam 2017” will be one co-located exhibition with Nepcon Vietnam 2017, which is focusing to enhance supporting industry in Vietnam, and increase the localisation rate from the recent 10-30 per cent to hit an expected 45 per cent or more, to enjoy preferential rules of origin in most FTAs Vietnam has been taken part in.

However, at Nepcon Vietnam 2017, JETRO will stage “the 7th Vietnam-Japan Supporting Industries Exhibition” with total 80 exhibitors including 40 Japanese buyers and 40 Vietnamese suppliers who are looking to engage in business-matching discussion with potential business partners. Mr Hironobu Kitagawa, Chief of Japan External Trade Organisation (JETRO), Representative Office in Hanoi, shared: “In order to further strengthen Vietnam’s industrial competitiveness, Japan and Vietnam signed the agreement Japan-Vietnam Economic Partnership Agreement (JVEPA) in 2008 with the commitment to cooperate to develop Vietnam’s supporting industries. In accordance with the agreement, we organise “The 7th Vietnam-Japan Supporting Industries Exhibition” by cooperating with one of the largest and biggest exhibitions in the field of electronics and electricity as Nepcon Vietnam, and Industrial Components & Subcontracting; we are looking forward to more synergy than ever before.”

The "Nepcon Vietnam” 2017 edition raises the bar for quality production even higher by providing a selection of the latest electronic technologies from over 300 leading brands, such as Fuji, Juki, Techvalley, Trumpf, Kyoritsu, Sinfonia, WIT, SIP, Hibex and WKK.

The business opportunity will be multiplied more with 8 international pavilions hosted by the suppliers from China, Japan, Korea, Singapore, Taiwan and Thailand. Representing the Singapore Pavilion, Mr Ronnie Wong, Chief Operating Officer of Association of Electronic Industries (AEIS), shared: “We have always regarded Vietnam’s supporting industries positively because they have immense potential. Also, many of our members have been supplying technologies and consultations to many enterprises here and have acquired very good feedback, so this year visitors to NEPCON Vietnam 2017 can expect to meet quality exhibitors from Singapore at our pavilion again.”

Nepcon Vietnam 2017 attendees can get an up-close look at leading edge electronic technologies coming out of the region through “Shows in Show” activities which is a technology tour inside the event programme. As usual there will be plenty of networking opportunities available to delegates and exhibitors at the event, including via the “Business Matchmaking” service.

The impressive topics at this year’s “Nepcon Vietnam Forum” will feature some of the most influential figures from latest trend and movement of the world's electronics industry. In addition, the show will host “Hand Soldering Championship”. This competition recognised the best skills in hand soldering complex printed board assemblies, in which will motivate each manufacturer to develop skilled employees, in order to meet the high precision standard of the global electronics industry.

Commenting on the event, Ms Kasinee Phantteeranurak, Project Manager of Reed Tradex Co., Ltd. said that “Within the past decade, Nepcon Vietnam has become one of the leading events for the electronics industry, since debuting in Hanoi in 2015 as stand-alone exhibition focusing on the electronics industry, have become a pre-eminent event for thousands of global investors looking to expand business in Vietnam. We are delighted that Nepcon Vietnam is continuing to go from strength to strength, and our exhibitor numbers suggest we are on track for serving the increasing market demand.”

The exhibition "Nepcon Vietnam 2017" will run from 13-15 September at the International Centre of Exhibition (I.C.E), Hanoi. Further details on this exhibition can be found at www.nepconvietnam.com

Ahead of the opening of NEPCON Vietnam Exhibition 2017, Vietnam Business Forum would like to introduce excerpt opinions of well-performing companies in Vietnam.

Ms Yang Soyeon, Sales Manager, Systech Technology & Trading JSC

Systech Technology & Trading JSC, established in 2007, provides supporting products and solutions for FDI enterprises in Vietnam such as shelves and accessories for workshops, clean room solutions, spare part solutions, automation solutions and electro static discharge (ESD). All Systech products are imported from high-standard markets such as Europe, the United States, Japan, South Korea and Taiwan to meet customers’ quality requirements. Currently, Systech has branches in Ho Chi Minh City and Hai Phong City and a factory in Hung Yen Province.

We are always aware that Vietnam is a potential market for production development in the near future, meaning that Systech will have to compete more aggressively with rivals with 30-40 years of experience from Japan, South Korea, Taiwan and other countries by guaranteeing its product quality, improving the quality of after-sales solutions and services, and offering new solutions and products.

Systech is always professional, scientific and proactive in supplying systems of higher values to manufacturing industries and supporting industries. Systech has been a reliable partner of FDI companies as well as big customers and partners from Japan and South Korea like Canon, Samsung, Panasonic, Denso, Brother, SMC and Omron.

With the goal of lifting up the industrial level of Vietnam by providing better solutions and systems for supporting industries and for more sustainable life quality for the community, Systech is striving to become a corporate entity with annual revenue of at least VND1 trillion in a couple of years with 90 per cent of revenue coming from foreign-invested electronics, automotive, food and pharmaceutical companies in Vietnam and 10 per cent from exports to advanced Asian markets like Hong Kong, Japan, Singapore and Taiwan.

In order to promote marketing strategy and approach more potential customers, Systech will continue to participate in NEPCON Vietnam 2017 - a well-known electronics and automation exhibition to showcase its products and solutions to clean rooms and industrial mechanics such as gloves, masks, boots, automation production lines, electronic boards, bowl feeders, stamping machines and sorting machines.

Mr Pham Van Binh, Chief Representative, VINA Pham JSC in Hanoi

Vietnam's electronics industry is seeing a great opportunity and an enormous challenge. Being dubbed as the electronic marketplace of the world, we expect foreign-invested companies to invest more and expand production operations in order to create a good rapport for the development of electronic industry and to diffuse the MADE IN VIETNAM slogan all over the world.

The productivity level of domestic manufacturers has developed much more than before. But, it is important to focus on developing supporting industries to meet stringent requirements of international investors. It is also necessary to take firm steps to have a total solution to form a strong community of parts suppliers in the future.

I think that enterprises should be cautious about their investment and serious about their reputation to customers although they are domestic suppliers and manufacturers of smallest items for international investors.

Mr Nguyen Van Vinh, Regional Manager, FUJI Machinery Co., Ltd

Compared with other countries in the region such as Thailand, Singapore and the Philippines, Vietnam's electronics industry is far behind. We have only seen the presence of the electronics industry since the early 2000s although some Japanese factories and joint ventures had already invested in Vietnam earlier. But, they operated in a small scale with a tentative purpose and transferred technologies.

Vietnam's electronics industry really has its breakthroughs starting from 2007 with the advent of Foxconn (a world-leading manufacturer), Jabil (the world's top 5 outsourcing company), then Samsung, Nokia, Canon and Brothers which have helped shape the electronics industry in Vietnam.

Electronics exports account for a large share of Vietnam's total export value. However, up to now, Vietnam's supporting industries are still running short of inputs which are now almost imported. Therefore, the overall competitiveness of the electronics industry is still much to be completed. Or in other words, Vietnam is still mainly outsourcing for foreign contractors and relying on cheap labour to compete.

With the formation of the ASEAN Economic Community (AEC), Vietnam's electronics industry will have more opportunities. Nevertheless, this is also the time to have a makeover in skills, experience and professional working style. At the same time, it is necessary to approach, take on technologies or equip themselves with knowledge to master technologies through work experience, daring investment and contribution to the formation of supporting industries to hold sway over supply chains. This will improve the competitiveness of the electronics industry when low-cost labour is no longer an effective instrument to attract investment flows.


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