However, opportunities could become a big challenge if domestic firms aren’t well prepared. Data shows that every FDI project will need up to 30 support companies. These companies provide raw materials, components and packaging for FDI firms.
The LG Display project expecting to hit the market next year is seeking for Vietnamese support companies. The 4P Company currently provides components for many major FDI firms. The company believes the plant might provide opportunities for the domestic support industry. However, in order to take on this chance, Vietnamese support companies must meet strict requirements.
If local firms fail, their place will be taken by foreign-owned support industry firms. After a month of construction, LG Display has already welcomed visits from three foreign support companies.
Since the beginning of the year, there have been 907 newly registered FDI projects. This underlines that demand for support companies is huge. However, among every 10 support firms chosen, only one is a Vietnamese company.
