Global suply chain spurs support industry development

09:57 | 17/10/2016 Industry

(VEN) - Support industries remain weak despite improved added value and competitiveness, requiring greater efforts to spur the development of the sector.

Global suply chain spurs support industry development

Low starting point

According to the Ministry of Science and Technology, there are about 1,383 businesses in support industries, accounting for 0.3 percent of total numbers nationwide. Most of them are small and medium-sized enterprises in processing and assembly.

Although the number of Samsung’s spare part suppliers has increased by three fold to 190, only three tier 2 units have provided electronic components.

Samsung Vietnam General Director Han Myong Sup said, “We have realized that Vietnamese businesses really have potentials and abilities. However, they do not have the know-how.”

Efforts to join global supply chain

The state has issued many legal documents in encouraging the development of support industries such as Decree 111/2015, Circular 01/2016/TT-NHNN and Circular 21/2016/TT-BTC. These documents have offered many incentives and encouraged businesses to invest in this sector. To further promote the development of support industries, Vietnamese businesses need to catch opportunities to enter the global supply chain via connection with FDI businesses operating in Vietnam.

Samsung, the largest foreign investor in Vietnam, is making greater efforts to bring Vietnamese businesses to their global supply chain. As of date, some 63 Vietnamese businesses have joined Samsung’s global supply chain.

Han Myong Sup said that the figure would increase in the coming time as Samsung will continue to support businesses,  which are able to enter its global supply chain.

To strengthen the participation of Vietnamese businesses in the global supply chain, economist Can Van Luc said that support industry businesses need to conduct market research and actively cooperate with FDI businesses to improve competitiveness and increase their access to the global supply chain.

Vietnamese businesses must compete with Thai companies to receive Toyota’s orders for spare part production. Spare parts for the automotive and electronic sectors are in the trend of shifting from Thailand and some ASEAN countries to Vietnam. Therefore, the development of support industries is needed, requiring energetic efforts from all sides.

According to Samsung, some 190 Vietnamese businesses have provided electronic components for the company, including 12 tier 1 suppliers and 178 tier 2 units.


Lan Anh