Experts call for turning imported resources into domestic production capacity

Rising prices of essential electronic components and production inputs are pushing Vietnam to turn imported resources into domestic production capacity, according to experts. At a recent seminar, Ms. Trinh Thi Thu Hien, Deputy Head of the Ministry of Industry and Trade's Agency of Foreign Trade, noted that even though the volume of imports remains unchanged, the surge in input costs has led to a significant increase in the country's import bill.

This trend is causing import turnover to rise without a corresponding increase in import volumes. Companies are also stockpiling materials in anticipation of potential shortages, with some inventories increasing to 12 weeks worth of raw materials. This surge in imports is driven by expanded manufacturing capacity, with international companies like Samsung Electronics, Intel, and BYD investing heavily in Vietnam.

The main issue, as stressed by Mr. Phan Duc Hieu, a member of the National Assembly's Economic and Financial Committee, is not just the scale of trade or the trade balance, but Vietnam's ability to convert imported resources into domestic production capacity, finished products, and higher value-added goods. To achieve this, targeted programs are needed to connect domestic companies with foreign-invested enterprises, strengthen local production capabilities, and develop supporting industries.

Additionally, enhancing domestic supplies of components, materials, and equipment, as well as improving technological capabilities, quality management, and compliance with international standards, are considered key priorities for Vietnam's businesses. Ultimately, the integration of imports, production, and exports into a continuous cycle is essential for strengthening local supply chains and improving Vietnamese businesses' competitiveness.