13:55 | 11/02/2016 Industry
(VEN) - Local industrial bases are appreciated for their important contributions to the national industrial growth. However, the majority of these bases are small and medium-sized and in need of state support in the context of increasing integration. On the threshold of the Lunar New Year, Vietnam Economic News’ Hai Nam and Viet Nga interviewed Deputy Minister of Industry and Trade Hoang Quoc Vuong on this issue.
Small and medium-sized enterprises are slow in market expansion and production cost reduction
What difficulties are facing local industrial bases?
Currently, small and medium-sized enterprises, which account for about 97 percent of the country’s businesses, play a very important role in creating jobs and income for workers, attracting investment for national development and reducing poverty. However, increasing international economic integration has highlighted the difficulties these enterprises to face.
Difficulties vary including the realization of international economic integration commitments to reduce tariffs and open up our markets, which will lead to growing competitive pressure; meanwhile domestic enterprises can’t compete with regional counterparts in terms of labor productivity and quality, competitiveness, internal capacity, finance, technology, skills, working style, business awareness, management capacity, market development, branding and long-term strategy.
Moreover, small and medium-sized enterprises are weak in association, slow in design and quality improvements, limited in information technology renovation and market information, and slow in market expansion and production cost reduction.
All these difficulties have a great impact on production and business efficiency and competitiveness of small and medium-sized enterprises in the context of increasing international economic integration.
What assistance has the Ministry of Industry and Trade provided for enterprises to overcome these difficulties?
Recognizing the important role of enterprises in the development of the country, the Ministry of Industry and Trade has actively implemented corporate development policies, with a focus on the production and trading of small and medium-sized enterprises.
Specifically, the ministry has directed its affiliates to strictly implement Directive 13/CT-BCT dated August 17, 2012 of the Minister of Industry and Trade on the implementation of measures to remove difficulties in production and business of enterprises. The affiliates must perform seven tasks, including solving corporate problems with production and trading, promoting sales to reduce stockpiles, providing enterprises with an easy access to capital from banks, boosting corporate sustainable growth, issuing decisions and action plans to implement the industrial and commercial restructuring project in service of industrialization, modernization and sustainable development until 2020 with a vision towards 2030, outlining tasks and solutions to implement the national socioeconomic development plan and improve the business environment and national competitiveness and implementing industry promotion programs for small and medium-sized enterprises.
In 2015, the national industry promotion budget supported the implementation of 239 projects including vocational training, job transfer and skill improvement for 1,615 rural workers, management capacity training for 600 managers of rural industrial bases, construction of 50 technical demonstration models, modern machinery and equipment purchase and technology transfer for 96 industrial bases, branding for 18 enterprises, starting-up for 25 industrial bases, building 100 websites for businesses and rural industrial bases, supporting 2,036 booths set up at fairs and exhibitions at home and abroad by rural industrial bases and building five industrial clusters.
The ministry has positively implemented trade promotion programs at home and abroad including fairs and exhibitions, fieldtrips, market expansion, Vietnamese goods sales trips and permanent and price subsidized sales point establishment, Buy Vietnamese Goods implementation, product introduction and branding, export promotion and foreign partnership development and Business link development with a view to enhancing production and sales.
In addition, it has asked related agencies to promote the reform of administrative procedures within their scopes of functions and duties, boost the application and transfer of new machinery, equipment and technologies at small and medium-sized enterprises to enhance their competitiveness, accelerate the implementation of the national e-commerce program with a view to improving corporate and national competitiveness capacity.
What should local industrial bases do in order not to fall behind?
Vietnamese enterprises, especially local industrial bases, are facing increasing fierce competition from foreign rivals. However, they should take advantage of approaching opportunities to secure a new position in the market and build up their strengths to overcome difficulties and move ahead.
In order to confidently integrate into the world, domestic enterprises should proactively learn the latest information about related agreements and identify the opportunities that these agreements offer to stay active in the production and business. In addition, they should continue to implement the restructuring of enterprises, with a focus on improving the quality of human resources, the application of scientific and technological advancements in production and business to improve labor productivity and product quality while lowering product costs.