Vietnamese enterprises limited in global supply chain

Tuesday, Aug 16, 2022 08:23

A production line at Toyota in the northern province of Vinh Phuc. — VNA/VNS Photo Danh Lam

Vietnamese enterprises currently have limited participation in the global supply chain, and are not deeply involved in the value chain of multinational corporations in Viet Nam.

Pham Tuan Anh, deputy director of the Industry Agency said that Viet Nam currently had about 5,000 processing and manufacturing enterprises engaged in providing spare parts for the automotive and mechanical industries.

In which 70 per cent of enterprises supply domestic manufacturers, 8 per cent supply exporters and 17 per cent are involved in providing both.

Only about 30 per cent of supporting industry enterprises have joined the global supply chain and value chain.

This linkage is loose for many reasons, the main one being the limited internal resources of the industry, said Anh.

Do Thi Thuy Huong, Vice President of the Viet Nam Association for Supporting Industries, said that the specificity of the industry required capital and technology, which were two weaknesses of Vietnamese enterprises.

Besides, the linkage between enterprises in Viet Nam is still limited and can be said to be weak. They have not fully been aware of the great benefits of linking into the domestic business community or between domestic and foreign enterprises.

Pham Tuan Anh also acknowledged that Viet Nam currently did not have a leading business in the industry.

The level of enterprises and the quality of human resources were still limited. Research and development work and new product development had not been paid attention and there was a lack of investment capital, said Anh.

Meanwhile, he added that the allocation of resources to implement policies to support the development of the supporting industry was still ineffective due to the overlapping conflicts of other laws.

“We must strengthen linkages between domestic enterprises, the FDI sector and the global market to take advantage of opportunities from free trade agreements from the fourth industrial revolution to bring industrial enterprises in the country to participate more deeply in the global value chain,” Anh told Cong Thuong (Industry and Trade) newspaper. — VNS

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