Japan moves to shore up supply chains
Improving the supply chains in Ho Chi Minh City to support industrial development is a top priority, said Chief representative Yasuzumi Hirotaka of the Japan External Trade Organization (JETRO).
Hirotaka made the statement at the opening of a support industry exhibition on October 8, saying the localization of materials and components improves competitiveness of products by reducing costs and increasing profitability.
A recent survey by JETRO showed that material costs for companies in the city account for 58% of total production expenses while labour cost made up 17.4% in Vietnam.
The focus of Japanese companies operating in the city should be on attracting foreign investment to manufacture components and engineer tool and dye sets locally to capitalize on reducing – materials – the biggest component of manufacturing costs.
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