- Green Growth
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|Vu Trong Tai, general manager of Reed Tradex Vietnam|
What factors make Vietnam attractive for Reed Tradex?
Over the past few years, Vietnam has been detected as a potential market for Reed Tradex. This year, the time is ripe for Reed Tradex to expand operations in Vietnam due to the robust manufacturing activities in the country. The ongoing trade war between the US and China has pushed more multinational companies to relocate manufacturing to Vietnam.
At the same time, the recent trade agreements including the Comprehensive and Progressive Agreement on Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement/Investment Protection Agreement will open up opportunities for Vietnamese companies to enter new markets in the Asia-Pacific and Europe.
However, most Vietnamese companies have small-scale investment and a low technology base so they are somewhat behind competition in pricing, quality, and technical content.
As Vietnam is benefiting from businesses looking for alternatives to China amid trade tensions, local firms should take bold moves to invest in technology and modern equipment to seize these opportunities. As an exhibition organiser, Reed Tradex sees opportunities to help connect manufacturers and buyers.
How has Reed Tradex benefited from the growing manufacturing activities in Vietnam?
We have seen many companies based in Hong Kong and Shenzhen fly to Vietnam to source local products. According to the Vietnam Electronic Industries Association, the electronic industry has grown by 25 per cent in the north and 10-12 per cent in the south in the first six months of this year. This trend has propelled the development of the local supporting industry.
As the organiser of METALEX Vietnam, we have recorded a surge in interest from both local and foreign exhibitors. The scale of METALEX Vietnam 2019 next month will increase by 30 per cent compared to last year’s edition with 600 brands from 25 countries and territories taking part. Several exhibitors, especially those from Japan, have returned to the show and increased their booth space thanks to the positive results last year.
In this context, Reed Tradex has decided to set up a local office with 100 per cent capital from Thailand. Our local team aims to provide the best services to customers in a professional and timely manner.
In fact, not every foreign company is successful in finding local suppliers. Therefore, we hope our expos will become an ideal platform to create more business matching opportunities for local and foreign companies to boost manufacturing activities.
In addition, Reed Tradex also co-operates with the United States Agency for International Development to bring Linkages for Small and Medium Enterprises (LinkSME) to METALEX. The programme aims to help small- and medium-sized enterprises (SMEs) connect with multinational buyers. In addition, LinkSME also has a fund of $21 million to support SMEs to improve capacity, support training, and establish management systems to improve competitiveness in the global market. Hopefully, all of these initiatives will support local firms to keep abreast of the latest changes in the market and go global.
Could you spare a few words about METALEX Vietnam 2019 and its theme of Rising with Innovations?
METALEX Vietnam 2019, to be held from October 10 in Ho Chi Minh City, is Vietnam’s international exhibition on machine tools and metalworking solutions for production upgrade, will focus on the smart factory concept. Smart factories that are digitally advanced and connected facilities will sharpen the manufacturing performance in a host of operations.
Therefore, the event will showcase innovative machine tools, precision engineering, and metalworking technologies that could launch new levels of production. ABB Vietnam will showcase a fully-automated production demo, with robots synchronously controlled by ABB Ability Connected Services, a sophisticated suite of digital services.
WELDING Vietnam 2019, the leading international exhibition specialised in welding and cutting materials, equipment, and technologies in Vietnam, will be co-located with METALEX Vietnam. This show promises to be an all-in-one platform for Vietnamese and overseas industrialists to discover the most up-to-date techniques and solutions in the welding industry.
In addition, there are a number of automation equipment vendors participating in this exhibition. Hopefully, Vietnamese firms will find new technologies and equipment to support the manufacturing industry to improve productivity, increase quality, and reduce production costs.