Posted on 09/24/2013 10:41:48 PM PDT by TexGrill
Many foreign firms in Vietnam have shifted their focus away from production to trading imported products as import tariffs have fallen under free trade agreements.
Late last year Japan’s Mazda Motor Corp sent a letter to Prime Minister Nguyen Tan Dung saying it cannot set up a factory in Vietnam as planned, and would instead sell imported automobiles in the country.
Minister of Planning and Investment Bui Quang Vinh said it was regrettable since such projects are vital to the country. Vietnam hopes foreign investment would help it develop key sectors like automobiles, electronics, and processing industries by bringing technology.
Most other auto firms manufacturing in Vietnam, like Toyota, Ford, and Honda, have increasingly resorted to importing and selling products. Their ratio of imported cars now matches locally made ones.
Even a few years ago 75 percent of their cars had been produced locally.
At motor shows too, imports predominate whereas even five or six years ago few imported cars were to be seen.
A similar trend is being witnessed in the electronics sector. A few years ago Sony shut down its plant in the country and switched to importing products it makes in other countries.
Others like Canon, Sharp, and LG have also started to depend on imports.
(Excerpt) Read more at thanhniennews.com ...
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