Illustrative image (Photo: cafef.vn)Hanoi (VNA) – Only about 300 of theover 1,800 businesses working in supporting industries in Vietnam have joinedproduction chains of multinational enterprises, a figure described by analystsas too modest.
Vice Chairwoman and Secretary General of theVietnam Association of Supporting Industries (VASI) Truong Thi Chi Binhreleased the information at a recent workshop, noting that the problem lies inthe capacity of those companies themselves.
A survey of the VASI shows that theorganisation, trading and capital absorption capacity, along with the humancapital, of many businesses are weak.
Many of them lack appropriate managementstandards, but when invited to build those standards, they reject the offer, claimingthat this work is costly. And when multinational companies come to placeorders, they fail to meet their partners’ demand because of the lack ofmanagement standards, Binh noted.
Most of the companies in supporting industriesare also unable to manufacture products at the prices fixed by purchasers orcompete with prices of the same products of other suppliers.
She attributed this fact partly to the highinput expenses and cumbersome production.
Pham Nguyen Anh from the International FinanceCorporation of the World Bank Group said a number of supporting industrybusinesses in Vietnam have clear strategies and visions. They have also gainedinternational quality certifications or are striving to seek such recognition.However, they are still weak in practices.
Additionally, they are also weak in themanagement of supply chains and inventory.
All of the abovementioned shortcomings havehampered Vietnam’s supporting industry firms in satisfying big orders.
In 2018, many domestic auto makers like VinFastand Thaco moved to expand their assembly plants, Binh said, asking the Ministryof Industry and Trade to further assist supporting industry companies toconnect with these enterprises to promote supporting industries in Vietnam.
The country has also attracted investment frommany giant groups like Samsung or LG, and the ministry should persuade them toallow Vietnamese firms to join their chains.
Entrepreneurship in the manufacturing sectoralso needs to be encouraged since if there is not a big enough number ofbusinesses in supporting industries, “Vietnamese enterprises will always onlybe followers in global games”, Binh added. –VNA
Vice Chairwoman and Secretary General of theVietnam Association of Supporting Industries (VASI) Truong Thi Chi Binhreleased the information at a recent workshop, noting that the problem lies inthe capacity of those companies themselves.
A survey of the VASI shows that theorganisation, trading and capital absorption capacity, along with the humancapital, of many businesses are weak.
Many of them lack appropriate managementstandards, but when invited to build those standards, they reject the offer, claimingthat this work is costly. And when multinational companies come to placeorders, they fail to meet their partners’ demand because of the lack ofmanagement standards, Binh noted.
Most of the companies in supporting industriesare also unable to manufacture products at the prices fixed by purchasers orcompete with prices of the same products of other suppliers.
She attributed this fact partly to the highinput expenses and cumbersome production.
Pham Nguyen Anh from the International FinanceCorporation of the World Bank Group said a number of supporting industrybusinesses in Vietnam have clear strategies and visions. They have also gainedinternational quality certifications or are striving to seek such recognition.However, they are still weak in practices.
Additionally, they are also weak in themanagement of supply chains and inventory.
All of the abovementioned shortcomings havehampered Vietnam’s supporting industry firms in satisfying big orders.
In 2018, many domestic auto makers like VinFastand Thaco moved to expand their assembly plants, Binh said, asking the Ministryof Industry and Trade to further assist supporting industry companies toconnect with these enterprises to promote supporting industries in Vietnam.
The country has also attracted investment frommany giant groups like Samsung or LG, and the ministry should persuade them toallow Vietnamese firms to join their chains.
Entrepreneurship in the manufacturing sectoralso needs to be encouraged since if there is not a big enough number ofbusinesses in supporting industries, “Vietnamese enterprises will always onlybe followers in global games”, Binh added. –VNA
VNA
