SMEs should be players in support industries

14:07 | 29/03/2017 Industry

(VEN) - The Thang Long Packaging Production Export-Import Joint-Stock Company is a spare part supplier for many domestic and foreign partners. Nguyen Minh Ngoc, the general director of the company, spoke with Vietnam Economic News’ Nguyen Hoa about difficulties facing businesses when joining the global supply chain.  

Who are the company’s partners?

The company is supplying products and spare parts to about 165 domestic and foreign customers, with the main items being electronics and food.

In addition to Samsung Electronics Vietnam Company Ltd (SEV), we also supply to big partners such as Canon, Foxcom, Brother, Panasonic and LG.

What are the biggest difficulties of Vietnamese businesses when joining the global supply chain?

We are proud to be a wholly domestic-owned company and one of the few Vietnamese companies to become SEV’s tier-1 vendor.

To meet the conditions, businesses need to prove their production capacity by investing in advanced machinery and equipment and minimizing costs. Meeting scheduled delivery times is also required. In particular, the rules of healthy and transparent business practices must be implemented to mutual advantage.

What are the decisive factors for the success of small and medium-sized enterprises (SMEs) manufacturing components for large corporations in the world?

The quality of goods, the professionalism in production and ensuring sustainable benefits between the two parties are the decisive factors. Specifically, products delivered to customers must be on schedule, while ensuring high quality with reasonable prices.

In order to reach such a professional level, the leaders of SMEs must pay special attention to human resources.

If efficiency at work is good, labor productivity will be improved, contributing to reducing costs and providing products with the best prices for the market. In addition, improving skills and qualifications of workers is also needed.

What should the government do to support SMEs?

In addition to capital, SMEs need support in terms of land lease to expand scale in order to maximize their production capacity. To create the most favorable conditions for the development of SMEs, the government and large corporations should also have programs and projects to support the training of human resources.

Nguyen Hoa