The management board of Saigon Hi-Tech Park has said that they willraise localisation rate to 25 percent in products made by Foreign DirectInvestment (FDI) enterprises in the park this year, the Saigon GiaiPhong daily reported.

The park has also set a target to increase the rate to 40 percent by 2020.

Atpresent, the park’s export turnover by FDI companies reaches billionsof US dollars every year. However the localisation rate in theirproducts accounts for only 20 percent, the rest 80 percent materialshave been imported.

Of these, mechanical engineering field has toimport most components with the annually total import valueapproximating 30 billion USD.

Electricity and electronicsfield has a bit higher localisation rate of 20-30 percent. Still, localbusinesses have just supplied low value materials such as packing,machine frames and shells.

The localisation rate is very lowin hi-tech products. Most materials and components have been importedresulting in low added value of the products of about 15-17 percent.

The park’s management board said they will promote activities tosupply high quality human resources, assist businesses in technologytransfer, create stable business environment and policies, and helpbring together Vietnamese and FDI firms.

For higherlocalisation rate, the Government should give businesses withassistances in taxes, land rent and technical infrastructures, andcredit incentives, while local businesses need to take the initiative inraising the rate, according to the park's management board.-VNA