Businesses using each other’s products: Positive changes

09:16 | 27/08/2014 Trade

(VEN) - For the last two years since 16 groups and corporations under the Ministry of Industry and Trade signed a common agreement pledging to use each other’s products, the sales of many kinds of their products have increased, Deputy Minister of Industry and Trade Ho Thi Kim Thoa affirmed in a talk with Vietnam Economic News’ Lan Phuong.

What are your views on the results of the implementation of the agreement for the last two years?

For the last two years, these groups and corporations have achieved encouraging results from the implementation of the agreement. Many contracts have been signed with total value of approximately VND71 trillion (not including electricity and petroleum contracts). The sales of many kinds of products have been boosted and inventories therefore have decreased.

More importantly, these groups and corporations have changed their purchasing habits. Instead of importing foreign products, they have bought each other’s products. After the common agreement was signed, many bilateral supply contracts have been signed. For example, the Vietnam National Coal and Mineral Industries Group has bought steel from the Vietnam Steel Corporation and rubber tires from the Vietnam National Chemical Group.

Most importantly, the implementation of the agreement for the last two years has resulted in changes in the awareness of groups and corporations about using domestic products and services. They have voluntarily signed contracts to buy each other’s products on the principle of mutual benefits. This reflected the strong competitiveness of Vietnamese goods in comparison with imported products of the same categories.


A conference held to assess the results of implementing the agreement in the last two years


So far, the agreement has attracted the participation of 16 groups and corporations. Will it be expanded with a larger number of participants?

In fact, for the last two years, the agreement has been implemented among not only 16 groups and corporations which have signed it but also their partners, including joint stock companies and subsidiaries with foreign investment. These companies are both users and suppliers. So, in our opinion, the agreement has had broader effects than the contracts which have been signed among those 16 groups and corporations.

What do you think of the opinion that these groups and corporations signed contracts to buy each other’s products just to exchange relations, and they still have to import many important products from abroad?

The agreement has brought in substantial results. These groups and corporations have really benefited from it. For example, the Vietnam National Oil and Gas Group said that the agreement had contributed to boosting cooperation among domestic businesses and promoting domestic production.

What measures will be taken to achieve better results from the implementation of the agreement in the time to come?

In the last two years, groups and corporations signed contracts just to buy each other’s products, but in the time to come, they will have to improve their products based on actual demands. The interaction and communication between businesses will be intensified to create products that satisfy both buyers and sellers.

Besides, in the time to come, businesses will be encouraged to apply modern technologies to create high-tech products with higher added value. The Ministry of Industry and Trade will cooperate with other ministries and sectors concerned to help businesses promote research, investment and production.

For the last two years implementing the agreement that 16 groups and corporations under the Ministry of Industry and Trade signed pledging to buy each other’s products, many contracts have been signed with total value of approximately VND71 trillion (not including electricity and petroleum contracts). These included contracts signed to buy protective clothing worth about VND55.6 billion; VND165 billion worth of print and copy paper; over VND4.16 trillion worth of electrical equipment and VND5.2 trillion worth of construction steel. Thanks to the implementation of this agreement, the use of domestic machinery, equipment and materials by groups and corporations under the Ministry of Industry and Trade has increased. In the first nine months of 2013, the value of domestic machinery, equipment and materials accounted for 48.7 percent of the total value of machinery, equipment and materials at the Electricity of Vietnam Group; 64.8 percent at the Vietnam National Tobacco Corporation; and 88 percent at the Vietnam Vegetable Oil Industry Corporation.

The Vietnam National Textile and Garment Group and the Vietnam National Oil and Gas Group recently signed a bilateral agreement to buy each other’s products.

Theo ven.vn