Ho Chi Minh City seeks to promote export of mechanical products

The Investment and Trade Promotion Center of Ho Chi Minh City (ITPC) and Ho Chi Minh City Association of Mechanical–Electrical Enterprises are jointly organizing the "Ho Chi Minh City Products Week 2023 – Mechanical and Electrical Devices and Digital Technology" which attracts the participation of over 40 businesses.

Exhibitors are showcasing machinery, electrical equipment, digital technology services and solutions, logistics services supporting the mechanical engineering and electrical equipment manufacturing industry, and warehouse storage solutions.

According to Tran Phu Lu, ITPC Deputy Director, the products selected by businesses to showcase in the exhibition are reputable and high-quality items with beautiful designs and advanced technology, which also incorporate digital technology and automation in their applications.

The expo, to go on until June 7, is part of a city trade promotion campaign to help mechanical and electrical businesses promote their brands and products.

Mechanical engineering, machinery, and electrical equipment are key industries and serve as drivers of Ho Chi Minh City's industrial development. Due to the impacts of the global economic downturn, Ho Chi Minh City’s export turnover in the first half of 2023 is falling sharply.

In addition to trade promotion activities and market support, the municipal administration is also focusing on resolving difficulties and obstacles facing local businesses related to capital for production and consumption, thus helping businesses boost their export in the second half of the year and next years.

With support from the management authorities, mechanical and electrical businesses are making efforts to meet the criteria for joining supply chains.

According to the Department of Industry under the Ministry of Industry and Trade (MoIT), Vietnam has around 25,000 mechanical and electrical businesses, accounting for nearly 30% of the total number of processing and manufacturing enterprises in the country.

Data of the General Statistics Office (GSO) shows that in the first quarter of 2023, the export turnover of machinery, equipment, tools and spare parts group reached an estimated USD 9.85 billion, down a 3% year-on-year.

The main importers of Vietnamese machinery, equipment, tools and spare parts in the period were the U.S. (USD 3.99 billion), the European Union (USD 1.46 billion), China (USD 701 million), and Japan (USD 663 million).

According to insiders, the shifting of manufacturing workshops from China to Southeast Asian in general and Vietnam in particular is creating a great opportunity for Vietnamese businesses to access investment sources from foreign countries.

Tran Quynh Huong, who is in charge of supply chain management at Source of Asia, said with the presence of multinational companies such as Samsung, Foxconn, and Intel, Vietnam has become a leading country in the export value of electrical and electronic products over the past decade.

Source: VNA