Difficulty binds wisdom

Sharing with reporters of the Industry and Trade Newspaper recently, a representative of a business operating in the supporting industry sector said that the opportunity for domestic businesses to participate in the global supply chain is very large, especially in the context that many large corporations in the world have chosen Vietnam as a "stopping point". These corporations have poured billions of dollars, even billions of dollars into Vietnam to build factories and consider Vietnam an important production "base" in their global supply chain.

Many global corporations choose Vietnam as a "stopping point" (Photo: SEVT)

In particular, in the process of investing and operating in Vietnam, many large corporations in the world have also expressed their desire to find domestic suppliers of spare parts to reduce costs in terms of money and time for businesses due to having to import spare parts and accessories from abroad. A typical example is the Samsung Group of Korea, which has invested in Vietnam with a capital of nearly 20 billion USD, and is present in many provinces and cities of Vietnam such as: Bac Ninh, Thai Nguyen, Hanoi, Ho Chi Minh City.

In particular, the group is also eager to find domestic manufacturers of components and accessories. To realize that desire, Samsung has cooperated with the Ministry of Industry and Trade in developing supporting industry enterprises through the Smart Factory Development Cooperation Project in 2023 for enterprises in the provinces of Bac Ninh, Hanoi, Ha Nam, Hung Yen and Vinh Phuc. Previously in 2020, Samsung Vietnam cooperated with the Ministry of Industry and Trade to launch the Consulting Project to improve Vietnamese enterprises in the Southern region...

It can be said that the opportunities for Vietnamese supporting industry enterprises are wide open, however, to grasp this opportunity is not simple, especially according to statistics from the Ministry of Planning and Investment, up to 97% of Vietnamese enterprises are small and medium enterprises, they are weak and lacking in many aspects, in which, as Dr. Nguyen Hoa Cuong - Deputy Director of the Central Institute for Economic Management (CIEM) said, "the first problem is where is the money" - a big challenge for the small and medium enterprise sector.

Lack of capital causes businesses to miss opportunities to participate in the global supply chain (Illustration photo)

Mr. Luu Van Dai - Director of Metal Heat Vietnam Joint Stock Company said: How to participate in the global supply chain of large corporations is a problem that many Vietnamese mechanical enterprises are "having a headache" to find a solution. Because enterprises see many opportunities, but do not have money, they do not dare to invest and do not have the ability to invest.

This challenge becomes even more difficult when products entering the supply chain of large corporations must meet at least two criteria: quality and price. This requires businesses to have good technology, find optimal production methods to reduce production costs and product prices. Because good technology will optimize production, create product lines with good quality and reasonable prices.

Many businesses believe that accessing advanced technology in the world or learning advanced technology is not a difficult task for Vietnamese businesses, but capital is the biggest problem that domestic mechanical businesses are very weak in. Because to invest in new technology, businesses need a lot of money, but a small business has difficulty having enough financial resources to invest in modern technology, and startups have even more difficulty in accessing this technology.

The equity capital of small and medium enterprises in Vietnam is really difficult to be enough to invest in new technology. Borrowing from banks has many barriers because not only do they have to pay high interest rates, but businesses also have to have collateral. Meanwhile, where do small businesses and startups get collateral? So how many businesses dare to invest in new technology? Not to mention that high bank loan interest rates mean that businesses' selling prices must also be high, so domestic businesses lose their competitiveness compared to foreign businesses.

In fact, there have been many Government policies on capital support for small and medium enterprises, however, when applied in practice, enterprises still face many difficulties and barriers when accessing capital from banks, or if they can access it, it costs a lot of time and opportunity for the enterprise.

Accordingly, solving capital difficulties for small and medium enterprises is considered one of the optimal solutions today, aiming to bring opportunities for enterprises in particular and the economy in general. Because enterprises are the backbone of the economy, not only creating GDP growth, but also creating jobs for workers.

Source: https://congthuong.vn/co-hoi-tham-gia-chuoi-cung-ung-cai-kho-bo-cai-khon-315254.html