Vietnam needs stronger links with global supply chains

14:19 | 07/10/2018 Industry

(VEN) - Almost all factories of the world’s leading technology corporations are present in Vietnam, providing opportunities for the development of support industries. However, without cooperation, Vietnamese businesses are hard to join global supply chains.

vietnam needs stronger links with global supply chains

Prof. Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), said that as of date, Samsung has invested US$17.363 billion in Vietnam. The number of Vietnamese suppliers of Samsung Electronics Vietnam and Samsung Electronics Vietnam Thai Nguyen (SEV/SEVT) had increased to 29 tier-1 vendors and nearly 200 tier-2 vendors in 2017. To increase the local firms’ capacity as well as respond to the call of the Vietnamese government for improving their competitiveness, Samsung organized the consultation program for local companies with an aim that some 50 Vietnamese companies would become SEV’s tier-one vendors by 2020.

Prof. Nguyen Mai affirmed that connectivity between Vietnamese businesses and foreign direct investment (FDI) companies have provided practical assistance in terms of technological solutions and business administration to increase local firms’ capacity. On this basis, there are many Vietnamese businesses joining the global supply chains. However, the state needs to adopt mechanisms and policies to further promote connectivity.

To increase the number of businesses involved in the global supply chains, the Ministry of Industry and Trade has met FDI companies to strengthen exchanges and provide support in order to create favorable conditions for local firms, with a focus on electronics and automobile.

Regarding electronics, the Ministry of Industry and Trade has coordinated with Samsung to seek Vietnam’s qualified support industry businesses. In particular, the Ministry of Industry and Trade is cooperating with Samsung to organize training courses, aiming to improve production efficiency of Vietnamese support industry businesses, thus gradually meeting the requirements of global supply chains. A total of eight courses will be held during 2018 and 2019, with each course lasting three months, aiming to train 200 consultants in total. In terms of automobile assembly and manufacturing, the Ministry of Industry and Trade annually performs survey activities to assess capacity of support industry businesses and support them to join global supply chains.

Mac Quoc Anh, deputy chairman and general secretary of the Hanoi Association of Small and Medium Enterprises, said it is necessary to promote connectivity between Vietnamese businesses and FDI companies to increase local firms’ capacity. The association will strengthen cooperation with the Hanoi People’s Committee, the Hanoi Department of Planning and Investment, and the Hanoi Department of Industry and Trade to send representatives of support industry businesses to Japan and the Republic of Korea to learn and seek cooperation opportunities. In addition, the association will call for official development assistance (ODA) and preferential loans to support businesses in investing in equipment, machinery and technologies.

Quynh Nga