Small- and medium-sized enterprises (SMEs) must enhance their competitiveness to participate in Industry 4.0 and inclusive global value chains in the context of rapid integration and technology advancements, experts have said.
Vu Viet Ngoan, Chief of the Economic Advisory Committee to the Prime Minister, said at the conference, held by the US – ASEAN Business Council on Wednesday in Hai Phong, that there is ample space for the development and integration of SMEs.
Ngoan cited statistics showing SMEs in Viet Nam contributed more than 30 per cent of the gross domestic product (GDP) and provided jobs for more than 50 per cent of the labour force.
These figures were still modest in comparison with developed economies like Japan, Singapore, South Korea and the European Union, where the private sector contributed 50 per cent of the GDP and created jobs for 70 per cent of the labour force.
“In the context of rapidly changing global value chains and the development of the digital economy, SMEs must update their thinking and work to enhance their competitiveness to keep pace with global development,” Ngoan said.
Ngoan highlighted three things SMEs must focus on: being confident, being transparent and developing long-term co-ordination with partners.
“Together with the Government’s efforts in improving the business environment and policies to promote SMEs, I believe the development of SMEs in Viet Nam will boom,” he said. “SMEs are the backbone of the economy and the driver of growth.”
According to Bidhan Roy from the US’s Sisco System, digitalisation would help SMEs in ASEAN participate in cross border trade, expand business and reduce costs.
Michael Michalak, the US – ASEAN Business Council’s Senior Vice President and Regional Managing Director, said that in the near future, economic development and technological development would merge into one.
He said it is time for SMEs to start thinking about how to adapt to Industry 4.0. SMEs were encouraged to take advantage of technology advancements and integration opportunities, he said.
SMEs account for 98 per cent of the total number of firms in Viet Nam. — VNS