By Quoc Hung – Translated by Kim Khanh
HCM CITY — The Government has in recent years issued policies to promote the development of supporting industries, which are key to raising the value of other industries.
However, supporting industries remain limited in their capabilities, their output is low and their products do not meet quality standards required by multinational companies.
Việt Nam’s supporting industries need pioneering enterprises to play a leading role in spurring development so that the former can play a role befitting their potential.
THACO AUTO belonging to THACO Group is one of the bright spots in developing supporting industries.
Over nearly 20 years it has created a positive transformation, both for itself and supporting industries, increasing domestic production value and the rate of use of local parts and also increasing exports of components.
In Việt Nam, companies spend billions of dollars each year to import spare parts and accessories, which causes production costs to be 10-20 per cent higher than in other countries in the neighbourhood and often makes enterprises wait for shipments, and reduces the rate of use of local parts to low levels.
So many look for capable suppliers who can meet their needs so that they can increase the rate of use of locally made parts in their products as directed by the Government.
Based on its automobile production and assembly activities, especially demand for parts, nearly 20 years ago THACO AUTO devised a large-scale supporting industries development strategy and built Việt Nam’s largest automobile parts manufacturing industrial park in Quảng Nam to meet the dual goals of increasing the use of local parts and exports of automobiles and parts.
This was the right direction for developing supporting industries, meeting domestic and export needs and attracting investments into the park for the manufacture of accessories for the automobile, mechanical engineering and other industries.
This explains why THACO AUTO was successful in both exporting autos and parts even as many businesses switched to imports.
It has exported a number of products and parts to South Korea, Japan, Malaysia, Italy, Russia, Cambodia, Turkey, and Kazakhstan. From 2021 THACO AUTO’s products have also been available in new markets such as the US, Canada and Australia.
Besides, the company has entered into joint ventures and tied up with domestic and foreign manufacturers with advanced technologies to make products that meet international standards and produce OEM parts.
With this approach, THACO AUTO is both a supplier to the domestic market and an exporter.
In order to supply to foreign-invested firms and compete with foreign firms in the supporting industries, products must be of good quality and price. Therefore, investing in technology is very important and that is also THACO AUTO’s top priority.
In 2021 alone the company has invested over VNĐ300 billion (US$13.1 million) in new technologies, including upgrading plastic injection moulding and blow moulding technologies with machines of 100 to 2,000 tonnes for the former and 2500ml for the latter, installing SMC closed moulding thermal forming technology and 400-tonne hydraulic press machines and building a digital-based production system.
Expanding both domestic and export markets
Investing in supporting industries has been a success story for THACO AUTO, helping increase the rate of local parts — cars manufactured by the company currently have a rate of 20 – 60 per cent, the highest in Việt Nam — and create a premise for the development of other sectors such as mechanical engineering, agriculture and others.
This has helped increase the value of domestic production, gradually reducing the trade deficit.
The strategy for developing Việt Nam’s automobile industry, both serving the domestic market and exporting to regional markets, is being realised gradually.
Being a manufacturing and assembly partner of international car companies, THACO AUTO thoroughly understands the global component manufacturing processes and standards, and on that basis builds a road map for increasing the use of locally made parts in accordance with local and foreign manufacturers’ requirements.
THACO AUTO has supplied OEM components (glass windows for trucks and buses, bumpers, tweezers, flooring, ceiling panels, paints for motorcycle plastic components, and others) to many car and motorbike manufacturers in Việt Nam.
It is expected that in 2021 THACO AUTO’s sales of parts and accessories in the domestic market will triple from the previous year.
It targets earnings of $25 million from exports of parts and accessories this year to South Korea, Australia and Laos, including by expanding sales of new products such as glass windows for buses, ventilation panels for pickup trucks and mezzanine trucks and CNG tank covers. VNS
Previously, on February 9, 2021, based on the preliminary investigation results, the MoIT issued Decision No.477/QD-BCT to apply temporary anti-dumping and anti-subsidy measures to some sugar cane products imported from Thailand.
The Ministry of Industry and Trade started investigating the case on September 21, 2020, after assessing the request of the representative of the domestic sugar industry.
Based on the information provided by domestic manufacturers, the Government of Thailand, and related parties, the MoIT carefully reviewed and evaluated the level of dumping and subsidies of Thai cane sugar products, the damage to the domestic sugar industry, as well as socio-economic impacts, including impacts on downstream industries and consumers.
The investigation results showed that cane sugar products imported from Thailand, including refined sugar and raw sugar, were subsidized and dumped at a level of 47.64 percent.
Hence, the domestic cane sugar industry suffered heavy damage because subsidized sugar shipments from Thailand surged sharply in 2020 to nearly 1.3 million tons, up 330.4 percent compared to 2019.
By Van Phuc – Translated by Thanh Nha
Vietnam records 176 new Covid-19 cases this afternoon
The Saigon Times
|The Military Command of Hanoi’s Thach That District presents Covid-19 leaflets to people at the centralized quarantine center at the Vietnam National University -Hanoi. Vietnam has recorded another 176 Covid-19 patients this afternoon – PHOTO: VNA|
HCMC – The Ministry of Health this afternoon, June 16, reported 176 new Covid-19 cases, with 174 of them locally infected in five localities and two imported into Tay Ninh Province.
Among the local cases, 128 were recorded in Bac Giang, 35 in HCMC, eight in Bac Ninh, two in Ha Tinh and one in Nghe An.
Six cases in HCMC were linked to the HCMC Hospital for Tropical Diseases infection cluster and 29 others came into close contact with earlier confirmed cases.
As for the case in Nghe An Province, who is a bank employee in Vinh City, the source of his infection remains unknown.
The Vinh City and Cua Dong general hospitals, which the man had visited, have stopped receiving outpatients. All employees of the two hospitals have also been tested.
Duong Dinh Chinh, director of the Nghe An Department of Health, said it had accelerated the tracing and testing of those in close contact with the man, the second Covid-19 case in Vinh.
On June 9, he came to the Vinh City General Hospital for a medical checkup. After making a health declaration, he entered the hospital as he neither showed Covid-19 symptoms nor visited pandemic-hit areas earlier.
Two days later, he visited the Cua Dong General Hospital and underwent a Covid-19 test. The result came back positive.
In related news, as a worker of a company in the Amata Industrial Park in Dong Nai Province tested positive for Covid-19, the municipal government today approved the Dong Nai Industrial Zones Authority’s proposal to ask three enterprises to arrange for their workers to stay at the factories after work.
The three enterprises are Ocean Coatings Vietnam Co., Ltd in the Long Thanh Industrial Park in Long Thanh District, Shinpoong Daewoo Vietnam Pharm Co., Ltd in the Bien Hoa 2 Industrial Park in Bien Hoa City, and the Dong Nai Branch of GreenFeed JSC in the Song May Industrial Park in Trang Bom District.
These enterprises have a large number of employees each.
The arrangement of workers to stay at the factories must be agreed by the workers and the enterprises’ labor unions.
The province also asked these enterprises to coordinate with the healthcare sector to conduct Covid-19 tests for employees and only those with the negative result will be arranged to stay at the factories. The enterprises must pay for the testing costs.
Moreover, 61 direct contacts of the patient in the Amata Industrial Park have tested negative once.
The forecast enhances the expectation that 5G will become the fastest adopted mobile generation. About 3.5 billion 5G subscriptions and 60 percent coverage of 5G population are forecast by the end of 2026.
However, the pace of adoption varies widely by region. Europe is off to a slower start and has continued to fall far behind China, the US, the Republic of Korea, Japan and the Gulf Cooperation Council (GCC) markets in the pace of 5G deployments.
5G is expected to surpass a billion subscriptions two years ahead of the 4G LTE timeline for the same milestone. Key factors behind that include China’s earlier commitment to 5G and the earlier availability and increasing affordability of commercial 5G devices. More than 300 5G smartphone models have already been announced or launched commercially.
This commercial 5G momentum is expected to continue in coming years, spurred by the enhanced role of connectivity as a key component of post-COVID-19 economic recovery.
North East Asia is expected to account for the largest share of 5G subscriptions by 2026, with an estimated 1.4 billion 5G subscriptions. While North American and GCC markets are expected to account for the highest 5G subscription penetration, with 5G mobile subscriptions comprising 84 percent and 73 percent of all regional mobile subscriptions respectively.
Mobile subscriptions in the South east Asia and Oceania region have now exceeded 1.1 billion, with 5G subscriptions being just below the 2 million mark. 5G subscriptions are expected to grow strongly over the next few years with a forecast total of about 400 million by 2026. South East Asia and Oceania region will also see data traffic per smartphone growing at the fastest rate globally, reaching 39GB/month by 2026 – a CAGR of 36 percent. Total mobile data traffic will grow accordingly, with a CAGR of 42 percent, reaching 39EB/month driven by continued growth in 4G subscriptions and 5G uptake in those markets where 5G has already been launched.
Denis Brunetti, Head of Ericsson Vietnam, Myanmar, Cambodia and Laos says, “Mobile technology has been at the centre of Vietnam’s rapid digital transformation and inclusive GDP growth journey. As critical national infrastructure, 5G will undoubtedly be the enabling platform for the government of Vietnam’s vision of leveraging science, technology, and innovation in driving and creating the next wave of inclusive and sustainable socioeconomic development in Vietnam. 5G mobile network capabilities will play a pivotal role in achieving the government’s digital transformation program by supporting an accelerated adoption of Industry 4.0 across the nation.”
|5G remains on track to become the fastest adopted mobile generation in history with subscriptions increasing at a rate of about a million per day. 5G subscriptions with a 5G-capable device grew by 70 million during the first quarter of 2021 and are forecast to reach 580 million by the end of 2021. South East Asia and Oceania region will see data traffic per smartphone growing at the fastest rate globally by 2026.|
The tariff is valid for five years, starting from June 16.
Vietnam on June 16 officially slaps anti-dumping of 42.99% and countervailing duties of 4.65% for five years on sugar originating from Thailand.
|A local farmer is harvesting sugarcane. Photo: VNA|
The Ministry of Industry and Trade (MoIT) will impose the rates on imported sugarcane under HS codes 1701.13.00, 1701.14.00, 1701.99.10, 1701.99.90, 1702.90.91 with the aim to ensure a fair and competitive environment for Vietnam’s sugar industry.
The customs authority of Vietnam will check the Certificate of Origin (C/O) on sugar from Thailand in accordance with the ASEAN Trade in Goods Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the UK-Vietnam Free Trade Agreement (UKVFTA).
Earlier, last September, the Trade Remedies Authority of Vietnam stated that the Thai government has been maintaining a number of policies subsidying its sugarcane aquaculture and sugar growers.
The investigation came from a complaint last August filed by six Vietnamese enterprises. They argued Thai sugarcane imports had seriously hurt their production and business activities. They proved that in 2020, Thai businesses shipped nearly 1.3 million tons of subsidized sugar to Vietnam, an increase of 330.4% against 2019. Consequently, as many as over 3,000 workers have lost their jobs and some 90,000 farmers have been affected, according to MoIT.
In February, the MoIT decided to levy a 33.88% temporary anti-dumping and countervailing tariffs on sugar imported from Thailand.
On May 12, the MoIT’s Trade Remedies Authority held an online consultation related to the anti-dumping investigation on sugarcane originating from Thailand with the participation of more than 80 delegates.
Domestic manufacturers said the Thai government spent nearly US$1.3 billion per year on subsidizing export and direct payment during the sugar price falling period.
In the 2019-20 period, the Thai government continues to subsidize by supporting sugarcane farmers to buy production materials with a total budget of US$325 million, according to a recent report by Vietcombank Securities.
This caused serious damage to Vietnam’s sugar industry and the domestic manufacturers requested to impose an anti-dumping tax on Thai sugarcane.
The investigation was carried out properly in a fair and transparent manner in accordance with Vietnam’s law and the World Trade Organization rules, the MoIT affirmed.