Although the supply chain has been gradually restructured, in reality the majority of Vietnamese industrial enterprises are still small and unable to participate deeply in the value chain.
On the afternoon of June 26, the Vietnam Federation of Commerce and Industry (VCCI) coordinated with Business Forum Magazine to organize the 2024 Business Forum with the theme "Diversifying supply chains, developing markets, and enhancing business adaptability".
Speaking at the Forum, Mr. Hoang Quang Phong - Vice President of VCCI commented: “Diversifying production, supply and value chains is not only an objective requirement but also an important orientation of the Party and Government. The 13th National Party Congress documents emphasized the continued promotion of the role of State-owned enterprises in forming and expanding production, supply and value chains.
 |
| VCCI Vice President Hoang Quang Phong speaks at the Forum. (Photo: Van Chi) |
In Resolution No. 41-NQ/TW on building and promoting the role of Vietnamese entrepreneurs, the Politburo set a goal that by 2030, a number of enterprises will have an important position and role in the global supply chain and value chain; master a number of industrial and agricultural value chains, and have international competitiveness in fundamental, priority, and spearhead industries.
At the same time, the Vice President of VCCI affirmed: “With the ambition to rise up the value chain, Vietnam has a unique opportunity to exploit its position in global value chains. The Government's goal is to develop domestic networks of first-tier suppliers (direct) and second-tier/third-tier suppliers (indirect suppliers to manufacturers), connecting them to final assembly stages with the expectation of guiding these enterprises to produce more complex products and diversify the 'basket' of export goods.
Therefore, in the coming time, support policies must come from the needs of businesses. Businesses must be the ones to set the needs first, then the Government designs support programs for businesses to grow, increase competitiveness, and improve the capacity of domestic businesses in important industries with great potential for linkages.
Experts at the Forum commented that in the current context, new trends continue to affirm that Vietnam's foreign policy priorities are correct. Vietnam is a member of many regional initiatives and associations, such as the Asia-Pacific Economic Cooperation (APEC), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-European Union Free Trade Agreement (EVFTA), etc.
In addition, Vietnam also participated in the negotiation of a number of initiatives and agreements, such as the Indo-Pacific Economic Framework (IPEF), the Vietnam-EFTA Free Trade Agreement (VN-EFTA FTA), and the Vietnam-Israel Free Trade Agreement (VIFTA). This is a favorable opportunity in the process of Vietnam's increasingly deep international integration.
In the positive results of our country's economy in the first 6 months of 2024, there was a strong recovery in export activities with an estimated turnover of nearly 189 billion USD, an increase of 13.8% over the same period in 2023. Notably, in some key products, the export turnover increased not only due to market demand but also due to a certain shift of orders from other countries to Vietnam.
However, Vietnam’s trade also faces some challenges. Although the supply chain has been gradually restructured, in reality, the majority of Vietnam’s industrial enterprises are still small and unable to participate deeply in the value chain.
According to the Ministry of Industry and Trade, Vietnam currently has about 2,000 enterprises producing spare parts and components, of which only about 300 enterprises participate in the supply chain. The application of science and technology, especially e-commerce, has not been fully exploited, causing the export business models of Vietnamese enterprises to approach the consumer market slowly, the process of goods trading is slow, directly affecting export activities.
 |
| Overview of the Forum. (Photo: Van Chi) |
Dr. Le Duy Binh - CEO of Economica Vietnam said that deeper integration into the global supply chain depends largely on the self-efforts of enterprises. However, those self-efforts will be much more favorable and easier if institutional conditions, policies, business environment and legal regulations do not create obstacles...
“Through our research, we found that there are still some major bottlenecks in institutions and support policies to help Vietnamese enterprises become more confident and stable when joining the global supply chain. Accordingly, in addition to the efforts of enterprises themselves in meeting commodity standards, there needs to be innovation in the approach to supporting enterprises in a more focused and focused direction to achieve specific goals, prioritizing the current perspective of enterprise development,” Mr. Binh suggested.
Dr. Nguyen Manh Hung, Senior Lecturer of the Department of Supply Chain Management and Logistics at RMIT University, said that “greening” in manufacturing is the key for businesses to improve their competitiveness and participate deeply in the supply chain. “Customers’ green consumption requirements are pushing manufacturers and suppliers to adopt new standards and adjust their operations. Customers, especially in developed countries, are increasingly conscious of the environmental impact of their purchasing decisions,” Mr. Hung shared.
According to Mr. Hung, in Vietnam, according to a survey by Rakuten Insight in 2023, up to 84% of consumers are willing to pay higher prices for sustainable products. Meanwhile, Vietnam's major export markets, typically the European Union (EU), are implementing stricter environmental regulations and standards for products and services imported into this region.
“Greening is no longer an option but a decisive factor for the success of export orders. From a supply chain perspective, buyers play a very important role in monitoring and collaborating to promote greening. They are the subjects leading the supply chain and promoting the green transition to ensure that the final product/service meets market demand,” Mr. Hung commented.
Managers, experts, business associations, and entrepreneurs at the Forum discussed openly, frankly, and responsibly, suggesting solutions and recommendations to diversify supply chains, develop markets, and improve business adaptability.
In particular, specific groups of solutions are proposed such as: promoting the development of supporting industries, increasing new production capacity to proactively create sources of raw materials, fuels, and materials, meeting production needs and increasing added value and competitiveness of export goods; focusing on connecting domestic participation in the production and supply chains of FDI enterprises and large global enterprises, creating markets for developing industries.
Enterprises need to promote the development of e-commerce, especially cross-border e-commerce, to promote the development of supply chains, circulation of goods, expand markets and boost exports. Create favorable conditions and have solutions focused on removing technical "barriers" for enterprises to penetrate new markets; enhance digital transformation in the issuance of preferential Certificates of Origin (C/O) and propaganda, guidance on rules of origin and issuance of C/O, self-certification of origin... Promote the development of logistics services, contribute to reducing costs, improving the competitiveness of Vietnam's export goods...
In the context of many difficulties, to support businesses to recover and promote growth, on January 5, 2024, the Prime Minister issued Resolution No. 01/NQ-CP on key tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2024; Resolution No. 02/NQ-CP on key tasks and solutions to improve the business environment and enhance national competitiveness in 2024. Along with that, Resolution 58/NQ-CP dated April 21, 2023 of the Government on a number of key policies and solutions to support businesses to proactively adapt, recover quickly and develop sustainably by 2025 has been and is being vigorously implemented by ministries, branches and localities to remove barriers and difficulties for businesses... improve business competitiveness, and develop the socio-economy. |
Comment (0)