Commenting on the production capacity and competitiveness of enterprises in the supporting industry in Vietnam, Mr. Vu Trong Tai – General Director of Reed Tradex Vietnam Company, exhibition organizer on the manufacturing industry, leading support in the ASEAN region – said that there has been a big step forward in the global supply chain.
After 11 times of organization, the exhibition on manufacturing and supporting industries (Vietnam Manufacturing Expo – VME) has brought positive meanings to businesses and supporting industries in Vietnam. ?
VME Exhibition is an annual event held in Vietnam, bringing together many of the world’s leading enterprises and brands, increasing business opportunities and improving production capacity for enterprises in the supporting industry in Vietnam. Through exhibitions in Vietnam, we have all received positive feedback from participating businesses, accordingly, this is an effective sales and communication channel with businesses, after events, businesses have a large number of customers. especially when they know information and market trends to have a suitable business strategy. In particular, the Ministry of Industry and Trade also assessed that the VME exhibition held in Hanoi in recent years has a very important meaning, creating a premise for Vietnamese enterprises in the industry to increase production capacity and connect with other industries. international partners.
At this year’s VME, 40% are domestic enterprises and 60% international enterprises. As an organizer, connecting businesses, can you tell us about the supply opportunities of Vietnamese enterprises?
Vietnam is considered as one of the potential markets for industrial production in the region. With the trend of shifting investment flows for manufacturing industries, advantages of human resources, geopolitics, stable support policies of the Government, many large corporations in the world have been building factories in Vietnam. industrial zones in Vietnam, helping to expand resources and increase production capacity to be able to meet the increasing demand at home and abroad. In the supporting industry in Vietnam, there are also a number of brands and enterprises that are capable, competitive, and have a relatively good ratio of technical content, raised one step, and have commercial connections. There are many foreign partners who have a demand for supplying components and products with very high requirements and Vietnamese enterprises have joined and met them. At the VME 2019 exhibition, names like Hong Ky and Minh Hoa are particularly interested by foreign manufacturers, and have demand for supply cooperation.
In fact, in the supporting industry in Vietnam, the main role is still small and medium enterprises. According to you, the capacity of enterprises as well as business support policies need to be improved?
The supporting industry accounts for a large proportion of small and medium-sized enterprises, so most of them are still not capable of supplying large orders; Management level is limited, product quality and cost are high, so it is not competitive. On the other hand, when participating in the global supply chain, many Vietnamese enterprises only have short-term plans and have not yet boldly invested or demonstrated their capacity to customers and partners. In addition, although the Government has supported programs for businesses, it has not met the needs of investment in technology, human resources, and marketing to develop enterprises, develop markets, and improve competitiveness. Like Thailand, they have a very synchronous supporting industry policy, for example in the auto industry, since 2000, the Thai Government has had a clear development orientation, has a policy to support trade. market promotion for enterprises.
Obviously, in comparison, Vietnamese enterprises do not have an advantage, do you think they can compete?
When foreign enterprises invest in Vietnam, it means that they always want to buy domestic components and spare parts to reduce inventory and cost, this is a good opportunity for domestic enterprises. But due to limited capacity, domestic enterprises have to compete with regional suppliers with better industry, technology and labor productivity. Therefore, in order to meet the requirements of investors, participating in the global value chain with competitive products, domestic enterprises need to increase the content of gray matter and the level of technology, rather than relying on human resources. cheap labor as before. At the same time, there are many niches to go effectively, you don’t have to be a big company like Vingroup to participate in the supply chain, the important thing is to go small but in the right direction, knowing how to take advantage of technology. , market, people.
Thank you Sir!
According to: http://www.vietnamshipper.com/
