Paving the way for purely Vietnamese enterprises to participate in the supply chain is not only a solution to improve capacity but also a key factor in economic development.
Medium and low technology content
With the expansion of the supplier network and the increase in the localization rate of the world's leading automobile brands in Vietnam, it has created great opportunities for Vietnamese supporting industry enterprises to confidently enter the global playground.
The Ministry of Industry and Trade also recognizes that supporting industry is an important branch of the manufacturing and processing industry in particular and the Vietnamese economy in general, playing a role as an input source for the production chain and promoting the circulation of goods in the country.
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| It is necessary to create a market for the automobile supporting industry, maintain and expand domestic automobile production and assembly activities. Photo: THACO |
However, the Department of Industry (Ministry of Industry and Trade) also pointed out the fact that although the production and technology level of Vietnamese supporting industry enterprises has gradually improved, domestic supporting industry products are still mainly simple components and parts, with medium and low technology content, and have small value in the product value structure. The capacity to organize production management and technical technology of most Vietnamese supporting industry enterprises is still limited. Notably, the gap between the requirements of multinational corporations and the response capacity of domestic manufacturing enterprises is still quite large.
Looking back at Resolution 115/NQ-CP of the Government on the development of supporting industries, it has set a goal that by 2025, Vietnamese enterprises will be able to produce highly competitive supporting industrial products, meeting 45% of essential needs for domestic production and consumption, accounting for 11% of the total industrial production value.
Currently, there are about 1,000 enterprises capable of directly supplying assembly enterprises and multinational corporations in Vietnam, of which domestic enterprises account for about 30%. However, according to the assessment, up to now, this is still considered a challenging target for domestic supporting industries.
“Push” for business
Realizing the importance of industrial development, including supporting industry, improving production capacity, and increasing the competitiveness of domestic supporting industry enterprises, in recent times, the Department of Industry has coordinated with multinational corporations to implement many training programs, consulting on production technology innovation, helping enterprises improve productivity, and have the capacity to participate deeply in the global supply chain and value chain. In particular, it is necessary to mention the cooperation program between the Department of Industry and Toyota Vietnam Company through the signing of a Memorandum of Understanding over the years on cooperation to support supporting industry enterprises.
Speaking to reporters of the Industry and Trade Newspaper, Mr. Nguyen Manh Ha, Head of the Supporting Industry Department, Department of Industry, said that from 2020-2024, the Support and Consulting Program for Improvement for Supporting Industry Enterprises has implemented production improvement training and on-site consulting for more than 60 Vietnamese enterprises to improve productivity and product quality, meeting Toyota's production chain. Through this program, Toyota has screened and selected 7 potential suppliers.
This morning (February 27), the Vietnam Association of Supporting Industries (VASI) and Toyota Vietnam Company jointly organized a ceremony to summarize the training and consulting program for improvement for supporting industry enterprises.
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| Mr. Hitoshi Ugi, Director of Purchasing Division, Toyota Vietnam. Photo: Thanh Tuan |
Mr. Hitoshi Ugi, Director of Purchasing Division of Toyota Vietnam Company, said that in 2024, the company will continue to accompany 5 new enterprises including: Zion Plastic Joint Stock Company; JAT Auto Parts and Industrial Equipment Manufacturing Joint Stock Company; Saigon Auto Supporting Industry Joint Stock Company (SASI); Hanotech Precision Mechanical Co., Ltd.; Hanel Plastic Foam Joint Stock Company.
“ Through the program, businesses have implemented 5S improvement measures, safety improvements, step by step improvement of operating processes and production optimization. After more than 6 months of implementation, the program has achieved results beyond expectations, not only in specific improvements but also in changing management thinking ,” emphasized Mr. Hitoshi Ugi.
Providing more information about the results achieved by the companies, Mr. Hitoshi Ugi said that SASI Company saved 1,520 m2 of area, saved 720 million VND/year in labor costs and reduced 7.8 billion VND in working capital; JAT Company saved more than 1.1 billion VND/year in labor costs, saved 293 million VND/year in transportation costs; Hanotech Company saved 1.7 billion VND/year in labor costs, reduced 1.1 billion VND in working capital through reducing raw material inventories...
“ These results show that Vietnamese companies are ready to change to meet market demands. Among the companies that have received support from Toyota Vietnam, four are participating in the evaluation process to become Toyota suppliers. This evaluation will end in March this year, ” said Mr. Hitoshi Ugi.
Hanotech Company representative said that within 6 months of project implementation, Hanotech has achieved many positive results, especially in reducing area, reducing the number of unnecessary workers and significantly improving 5S activities in the factory. These changes not only help improve production efficiency but also optimize the working environment, bringing great benefits to the company.
Sharing more about the cooperation program between VASI and Toyota Vietnam, Ms. Truong Thi Chi Binh, General Secretary of the Vietnam Association of Supporting Industries, said that businesses will continue to receive support and companionship from Toyota Vietnam. In addition, VASI hopes to be able to help businesses get more orders and increase productivity in the future.
"Supporting industry enterprises need to coordinate with associations to form business groups and sector groups to focus on increasing production quantity and quality. Forming a group of leading enterprises will help produce component clusters, creating pioneering groups of enterprises that can participate more deeply in the global supply chain," Ms. Truong Thi Chi Binh shared.
Previously, from 2023, Toyota Vietnam Company coordinated with VASI to implement a field improvement consulting support program, in which Toyota experts directly supported 5 VASI member enterprises, namely Innotek (Innotek Joint Stock Company), Technokom (Technokom Joint Stock Company), Binh Minh Mechanical Company, HTVG (HTVG High-Tech Joint Stock Company), Phong Nam (Phong Nam Sinhirose Company Limited) to implement improvements according to Toyota's method.
This approach, along with business support programs, will help Vietnamese businesses participate more deeply in the supply chain. Thereby helping to improve the production capacity of purely Vietnamese domestic businesses, helping them access advanced, modern technology and become a reliable partner for investors.
| According to the Ministry of Industry and Trade, cooperation with multinational corporations is expected to bring many practical values, contributing to improving capacity and increasing access to global production chains for Vietnamese supporting industry enterprises. |
Source: https://congthuong.vn/duong-dai-cho-doanh-nghiep-thuan-viet-tham-gia-chuoi-cung-ung-375928.html
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