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Moulding complex to boost Vietnam’s supporting industries

07-10-2014

N&G Corp and Osaka-based General Production Company recently signed an agreement to co-operate in the development of a Japanese moulding complex in the Hanoi Southern Supporting Industrial Park (Hanssip). Nguyen Hoang, chairman of the Hanoi Supporting Industries Business Association and CEO of N&G Corp, Hanssip’s developer, talked to VIR’s Tuyet Anh on his hope for a change in Vietnam’s supporting industries through working with Japanese firms.

N&G Corp has cooperated with many Japanese investors, why?
Only Japan can provide Vietnamese firms with experience, capital and core technology in support industries. Vietnam’s support industries are undeveloped but we can shorten the time needed to develop by co-operating with the best in this field. Moreover, there have been unpredictable and complicated developments in world politics, thus co-operating with eminent firms such as those from Japan is good self-defense and a good way to develop for small Vietnamese firms.
The signing of the agreement is only the first stage of the development of the complex. What is happening next?
We have set aside 100 hectares in phase 2 of Hanssip for this complex in 2015. This area was determined according to the requirements of Japanese moulding firms. It’s 500 metres away from a residential area and at least 100 metres away from other firms.
The designing of plants is carried out jointly with Japanese firms that specialise in design so that all Japanese standards and requirements are met. Policies for the projects of Japanese moulding firms will soon be submitted to authorities of the two countries. The first phase of Hanssip is going to welcome Vietnamese firms.
Is the cooperation with Japanese partners going smoothly?
We have specialised industrial infrastructure that meets Japanese standards. Our firms are capable of absorbing technology. On the other side, Japanese firms are looking for a safe destination at a reasonable cost, connection and a win-win kind of co-operation.
But they still need to see concrete policies and we do too. Firms need to see a master plan for industries and a master plan for regions that include their strengths and in which regions are not competing against one another but co-operating.
We’re co-operating with one another and with Japanese firms in the same field to create a value chain. This method will benefit firms instead of pitting them against one another the way they did when they all jumped into the real estate market before.
Most supporting industry firms in Vietnam are startups. What benefits will the members of the Hanoi Supporting Industries Business Association get?
Startups are not as weak as many people think they are. In my opinion, they are the ones that create the future. These firms’ CEOs are young and educated abroad. Many have worked in Japanese firms before. They know about economic integration and have the capacity to absorb technology. Most importantly, they want to work and change the image of Vietnamese support industry firms.
Their biggest weakness is capital, infrastructure and partners, but we, as firms that have faced the same challenges in the past, and our partners, which are commercial banks, can help them.
 

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