Hanoi (VNS/VNA) - Vietnamese enterprises need more opportunities to gettechnology transfers from foreign investment activities and join ventures withforeign partners for sustainable development of the domestic industry.

Technology isimportant in improving global competitiveness for local manufacturers in Vietnam,said BT Tee, General Director of Informa Markets Vietnam.

The domesticindustrial sector, which contributes 50 percent of national GDP, has astrategic position in the sustainable development of the domestic economy andattraction of foreign investment.

Local enterprisesmust actively improve production scale and technology and connect withprofessional partners to develop the industry and participate in the globalsupply chain, said BT Tee.

To do this, someexperts said local enterprises must overcome challenges in using datamanagement systems. Vietnam’s industrial sector and domestic enterprises facemany difficulties in digitising and connecting data of enterprises as well asapplying technology and smart machines in production lines.

With the developmentof Industry 4.0 and globalisation, local businesses need to actively takeadvantage of opportunities to increase competitiveness, according to theexperts.

The global free trademarket requires domestic enterprises to invest in research and production ofsmart machines that are capable of competing in many markets but not justmeeting demand in the domestic market.

According to theJapan Trade Promotion Organisation (JETRO)’s branch in HCM City, foreign directinvestment (FDI) from Japan to Vietnam has increased significantly year byyear, showing that the Japanese business community have always appreciated the Vietnammarket and strived to seek opportunities for cooperation with Vietnameseenterprises, reported the Vietnam News Agency.

For the industrialsector, Japanese enterprises have advantages in equipment and machinery withmodern production technology to increase productivity and reduce costs.

With entry into freetrade agreements such as the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) or the Vietnam-EU Free Trade Agreement(EVFTA), Vietnam is a potential market for foreign businesses in almost allfields.

According to MarkoWalde, Chief Representative of the Association of German Chambers ofCommerce and Industry (AHK) in Vietnam, the association wishes to connect businessesof the two countries, helping Vietnamese enterprises approach to newtechnologies and solutions in the manufacturing industry.

It will also help Vietnamimprove its competitiveness and sustainable development as well as supportbusinesses in meeting the regulations of Vietnam’s Government and the needs ofmodernising machinery and production lines for development of the domesticsupport industry.

Walde said for themanufacturing industry, effective exploitation of investment promotion channelsand attraction of foreign capital is a challenge for both management agencies,as well as the business community.

According to theMinistry of Industry and Trade, the important issue for the domestic industrysector at present is to improve the low technical and technological level ofenterprises. Statistics show that 59.6 percent of local enterprises useoutdated technology and only 2 percent use high technology for production.

According to Vietnam'sindustrial development strategy up to 2025, Vietnam's industry will be morecompetitive and use modern technology, participate in global value chains in anumber of specialties and fields as well as meet the basic requirements of theeconomy and export activities.

In addition, theVietnamese mechanical industry is also oriented to develop with advancedtechnology, international quality products and deeper participation in theglobal value chain.-VNS/VNA