To create leverage for processed and manufactured industrial products, in addition to support from the Government, ministries and sectors need stronger initiative from businesses themselves.
According to the survey results of the General Statistics Office, the processing and manufacturing industry has affirmed its leading role with a growth rate of nearly 8.7%, contributing 2.14 percentage points to the total added value of the entire economy in the first half of the year. However, in the last months of the year, the international and domestic context has favorable factors but production and trade development faces many difficulties and challenges.
In the second quarter of 2024, the two biggest difficulties for enterprises in the processing and manufacturing industry, as pointed out by experts, are still low domestic market demand and high competitiveness of domestic goods.
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| Mr. Cao Van Hung - Director of International Market Development, Smart Vietnam Precision Mechanical Joint Stock Company shared at the seminar. Photo: Quoc Chuyen |
Sharing about this issue at the Seminar "Promoting trade, creating "leverage" for industrial processing and manufacturing products" held on the afternoon of October 24 organized by Cong Thuong Newspaper, Mr. Cao Van Hung - Director of International Market Development of Smart Vietnam Precision Mechanical Company said that with the strong shifting trends of enterprises from countries such as the US, UK, Australia, industrial processing and manufacturing enterprises have welcomed a new wave of shifting.
On Smart's side, in the first 9 months of the year, the company's sales to the international market increased by 178% compared to last year and I predict this number could reach 230-250% by the end of this year," Mr. Hung shared.
However, on the other hand, the Director of International Market Development of Smart Vietnam Precision Mechanical Company said that Smart is currently facing many difficulties in implementing and meeting the increasing demand for orders from international markets such as the UK, US, Australia, and Canada.
“The first difficulty is high-quality human resources. At present, meeting the needs of the market and customers requires a large human resource. Especially those directly involved in production activities. In addition, foreign partners have very high requirements for quality, requiring businesses to know how to connect with related parties to create a complete product. However, in the process of finding units with the same export mindset, meeting high export standards is a very difficult task" - Mr. Hung said.
Pointing out the obstacles that industrial processing and manufacturing enterprises in general and Smart in particular are currently facing, Mr. Hung said that the objective factors are due to geopolitical tensions and increasing competition between major countries. At the same time, the recovery of major trading partners is still slow.
Along with that, currently Vietnamese enterprises are very weak in internal strength, "hungry" for information from markets, customer information and lack of policy information, making it difficult for many enterprises.
Due to subjective reasons, Mr. Hung stated that Vietnamese enterprises are currently not proactive in researching and connecting directly with partners and customers in international markets. Therefore, getting an order takes a lot of time, and profits can even be reduced when working with a third party to find customers.
In particular, the current orientation of the business is unclear, only focusing on the Vietnamese market, not having the mindset to reach out to the world.
"Accordingly, to improve their position and increase competitiveness, Vietnamese enterprises need to directly research the market and listen to feedback from partners, thereby being able to improve products and dominate the market," Mr. Hung stated his opinion.
Specifically, with many years of experience "fighting" in foreign markets, with the result that 90% of Smart's products have been exported to many demanding markets, Mr. Hung recommends that each enterprise, when wanting to "enter" the foreign market, needs to prepare a proactive and positive action plan in aspects such as market orientation, partners, innovation in production and management methods associated with good implementation of social responsibility and focusing on the foundation of business culture.
In addition, in order to facilitate processing and manufacturing enterprises for export, Mr. Hung proposed that the Government, ministries, branches and associations should support enterprises to export goods to demanding markets, such as regularly organizing seminars, forums and exhibitions so that enterprises have the opportunity to update information about markets, partners and new business opportunities.
For businesses, to further develop, it is necessary to strengthen links with each other, create investment opportunities to increase competitiveness and increase investment in developing supporting industries, invest in raw material growing areas to reduce dependence on raw materials from foreign suppliers.
In particular, it is necessary to proactively build production and business capacity, improve product quality and design to enhance competitiveness and build brands.
Enterprises also need to proactively develop business strategies and production development to be able to compete with goods from countries in the region, both in the domestic and export markets; and research to meet the criteria on rules of origin to enjoy tariff incentives.
And importantly, businesses need to have a mechanism to invest in human resources early, with a policy of adequate material and spiritual treatment for workers, especially highly skilled workers. This is an investment in human resources to create a competitive advantage when integrating.
Source: https://congthuong.vn/nhieu-doanh-nghiep-viet-con-yeu-ve-noi-luc-doi-thong-tin-tu-cac-thi-truong-xuat-khau-354552.html
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