Vietnamese electronic enterprises are often associated with production and assembly, while more important and valuable stages, such as research and development (R&D), design and logistics, are undertaken by foreign enterprises.

Enterprises in supporting industries now have great opportunities to develop but they will not grasp the opportunities if they can’t get support from the state.

Large steel manufacturers admit that in order to manufacture screws for automobile wheels, they have had to import steel. But they say they can make this kind of steel.

Vietnamese automobile manufacturers have had strong reactions to the comment by an analyst that the country's automobile industry is nothing more than the production of screws for vehicle number plates.

A speech by Assoc. Prof. Dr. Phan Dang Tuat, Chairman of the Vietnam Association for Supporting Industries (VASI), has raised controversy after he reportedly stated that Vietnam can only make screws for car license plates.

Of the 200 partners that provide parts to Apple, only 25 enterprises are from Vietnam and the others are foreign invested.

Most Vietnamese firms operating in supporting industries are technologically and managerially underdeveloped, according to insiders.

Vietnamese enterprises are looking for new opportunities amid shifting global supply chains and the volatile world economy, but restrictive policies could be in the way of this endeavour.

As many as 299,800 cars were domestically manufactured and assembled in Vietnam in 2021, a 9.1 percent increase compared with 2020, according to the General Statistics Office (GSO).

Vietnam is looking to work closely with foreign firms such as Samsung and Toyota to boost the supply of parts within the country, according to the Ministry of Industry and Trade.

Car sales have dropped sharply because of the fourth Covid-19 outbreak, prompting dealers to offer big discounts.

The Ministry of Industry and Trade (MoIT) will pay greater attention this year to the implementation of projects manufacturing products in supporting industries, as many opportunities have appeared for Vietnam to bolster production and exports.

Foreign direct investment in supporting industries is expected to spike in the coming months as more and more foreign companies establish production facilities in Vietnam and seek to develop supply chains here, experts said.

The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.

Some foreign automobile manufacturers and car part producers are considering setting up manufacturing facilities in Vietnam. Will Vietnam take advantage of the opportunity to become a production base in the region?

The ratio of Vietnamese goods imported and used as input materials by foreign countries is decreasing, while the ratio of Vietnam’s import of input materials to produce goods for end-consumption is increasing. 

“If enterprises want to join the global supply chain, don’t think local,” said Nguyen Anh Tuan from Samsung Vietnam.

The foreign capital inflow into Vietnam will help local enterprises expand their production, but the opportunity can only be grabbed by capable enterprises.

While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.