Several Danish companies see the potential in Vietnam’s metal industry and are already doing business here and the Embassy expects that the sector will continue to attract interest from Danish business, as Vietnam will become an even more interesting alternative to production in China due to its low costs, skilled and highly dedicated workers that learn fast and experience from supplying the booming local market.
“The Embassy has recently noted that big as well as smaller Danish companies realise that Vietnam could be an alternative or at least a very good supplement to sourcing metal products in China. The decision by the Chinese government to reduce VAT refunds on export goods, incl. metal products, seems to give impetus to an even faster development in Vietnam’s metal industry,” says Danish ambassador, Mr Peter Lysholt Hansen.
Until now the Vietnamese metal working industry has been completely dependent on imports of raw material from abroad, not least steel imports from China. A massive injection of foreign investments in steel production in Vietnam will change this in the time to come. A notable example is the commitment by Posco Steel from Korea to make the to date largest foreign investment in Vietnam spending USD 1.13 billion to set up hot-rolled and cold-rolled steel plants as well as a steel mill. Other investors are also setting up steel mills in Vietnam.
The recent MTA Vietnam 2007 exhibition in Ho Chi Minh City on machine tools and precision engineering testified the huge potential in Vietnam’s manufacturing industry, not least the metal, electrical and electronics industry. More than 430 companies from over 30 countries presented the latest precision engineering and machine tool technologies.
The massive interest from companies operating in Vietnam demonstrates that the local industry is aware of the need to upgrade facilities and machinery to improve quality, shorten production time and lower costs, in short to stay and become even more competitive.
The Embassy is ready to support Danish companies that want to explore export and sourcing opportunities in Vietnam. For further information, please contact Commercial Councellor, Mr. Erik Ovesen, [email protected], or Export Advisor, Mr. Thomas Gammelgård Jørgensen, [email protected].
