Domestic businesses need stronger support

Export businesses will receive strong support to grow in a sustainable manner in the near future

Leading businesses

According to the Ministry of Industry and Trade, Vietnam exported US$134.62 billion worth of goods in the first 10 months of this year, an 8.5 percent increase from a year ago. Of this, the domestic sector contributed US$39.5 billion or 29.3 percent.

As a result of increasing integration, Vietnam has become an attractive destination for leading global groups. With strong finance, established brand names and modern production technology, these groups have grown rapidly in terms of production and export. International giants such as Samsung and Canon accounted for a large percentage of total export revenues from this sector.

Deputy Minister of Industry and Trade Tran Tuan Anh said that export growth currently relies greatly on FDI enterprises. However, he said it is necessary to establish strong domestic businesses which will be able to compete globally and to lead the whole sector after cooperation with and learning from FDI partners.

During the process of international economic integration, many domestic firms have generated hundreds of millions of US dollars-worth of exports. They have also been able to compete internationally and to take part in global supply chains.

Bui Viet Quang, Deputy General Director of the Song Hong Garment Corporation, said their partners highly appreciated Song Hong. The corporation currently produces and exports garments to the US, the European Union and Japan for famous brands such as Gap, Zara, Mango, Columbia Sportswear, C&A and Calvin Klein. Song Hong has made and exported dozens of millions of garment products worth almost US$200 million per year.

According to Vu Van Thanh, Deputy General Director of the Hoa Sen Group (HSG), the group has achieved impressive growth during the 2014-2015 fiscal year, despite difficulties in the steel market. He also said that exports were the group’s growth engine with output of 425,581 tonnes of steel and revenues of about US$322 million accounting for 41 percent of HSG’s total revenues during this fiscal year.

Stronger support

Deputy Minister of Industry and Trade Tran Tuan Anh underscored the need to have strong domestic businesses which are able to provide materials for the production sector, help establish sustainable Vietnamese brand names, lead in exports and help Vietnam build a position in international trade.

Tran Tuan Anh said the Ministry of Industry and Trade is working with related ministries, sectors, business associations and enterprises in an effort to help businesses overcome major challenges, expand their markets and grow.

In addition, it is necessary to stabilize the macro economy, improve the legal environment, and provide preferential credit for businesses in order for them to renew technology and produce competitive and high-added-value products. The Ministry of Industry and Trade will continue working with business associations on measures to develop the market via trade promotion activities.

Tran Tuan Anh also said the Ministry of Industry and Trade and related ministries and agencies are getting together in an effort to help businesses build capacity and broaden their understanding of trade and technical barriers to protect the domestic economy in international trade.

Phuong Lan