Vietnamese businesses suggested taking advantage of global supply chain shifts

Tuesday, Feb 27, 2024 10:28

The trend of placing supply sources closer to consumer markets to minimise risks is the safest pathway to avoid interruptions. — VNA/VNS Photo

Domestic enterprises are suggested taking advantage of global supply chain shifts as Việt Nam is emerging as an attractive investment destination for global investors.

According to experts, the trend of placing supply sources closer to consumer markets to minimise risks is the safest pathway to avoid interruptions. Many multinational corporations are diversifying their supply sources in many markets that Việt Nam's supporting products are also targeting.

Phùng Anh Tuấn, deputy director of Manutronic Vietnam JSC, said that the global supply chain shifts bring his company and other Vietnamese electronics businesses opportunities to participate in the global supply chain, expand production and business activities, and create more jobs.

However, the shifts pose challenges for domestic supporting industries as they must meet high requirements and standards of partners.

To meet the requirements, Việt Nam needs a workforce with the capacity to obtain scientific and technological transfers to Việt Nam.

Deputy Chairwoman and Secretary General of the Việt Nam Association of Supporting Industries (VASI) Trương Thị Chí Bình said that Vietnamese enterprises in the manufacturing sector are mostly small and medium-sized ones that supply components and spare parts for the automotive, electronics, and motorcycle industries.

They are well aware of the regulations and requirements of the supply chains regarding quality and delivery time. However, producing components for high-tech products such as automobiles or aeroplanes is much more challenging. For the aviation industry, Bình said, some Vietnamese companies can produce separate small components for lower-tier suppliers of Boeing, but it is highly technical to be a supplier for a global aviation corporation like Boeing.

To become a chain of the global aviation industry in general, and Boeing in particular, countries need to have long-term preparation, she said, taking the example of India and Malaysia who started building strategies on developing the aerospace industry 30 years ago, from training engineers to researching technology trends.

Nguyễn Thị Vân Anh from Systech Trading and Technology Joint Stock Company said Việt Nam is attracting an influx of foreign direct investment, creating opportunities for domestic enterprises to become suppliers of the world's major groups. However, localisation rates remain low, only around 30-40 per cent, demonstrating significant challenges ahead for the supporting industry.

Nguyễn Hoàn Vũ, general director of KORI Beauty, said that to participate more deeply in global supply chains, Vietnamese businesses need to drastically change their thinking to meet client demand.

Enterprises should invest 10-20 per cent of resources in research and development to be able to make products with high technological content, he said. They should also apply international standards to improve professionalism and build trust.

He suggested that they adhere to internationally recognised management tools such as ISO9001 and ISO14001 to enhance professionalism and build trust with large foreign corporations. — VNS

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