Eastern Expressway Link Promotes Smart Manufacturing Chain

Eastern Expressway, as an important traffic artery

Take advantage of local advantages

Two years ago, in July 2022, the Eastern Expressway Economic Connection Agreement (VEHEC) was signed between VCCI and four localities including Quang Ninh, Hai Phong, Hai Duong, and Hung Yen. This is the first sub-regional connection model, aiming to establish a coordination mechanism to optimize resources, exploit the strengths of each province, and strengthen inter-provincial cooperation in the VEHEC area, thereby maximizing the economic potential of the region.

VEHEC is an important economic driving force of Northern Vietnam, with the GRDP growth rate of the entire VEHEC region in recent years reaching a high level, ranging from 9% to 12% per year, higher than the average GRDP of 63 provinces and cities.

According to Dr. Phan Huu Thang, the implementation of the VEHEC agreement has only been over a year, but it is clear that the effective steps and methods through specific economic connection cooperation have initially brought benefits to people and businesses in the four localities.

Based on this initial success, the economic connectivity activities of the four localities in the sub-region will contribute to improving the competitiveness of the Region, on the basis of mobilizing diverse resources (especially from foreign FDI capital) to support and facilitate sub-regional connectivity activities and projects, taking advantage of all advantages, internal and external strengths of each locality.

At the Eastern Expressway Industrial Zone Forum with the theme "Linking and promoting smart manufacturing supply chains" recently held in Quang Ninh, Mr. Pham Tan Cong - Chairman of the Vietnam Federation of Commerce and Industry (VCCI) emphasized: Vietnam, as a new production link in Asia, is increasingly playing an important role in the global smart manufacturing supply chain.

Smart manufacturing is becoming a new trend of Industry 4.0. Two years ago, Ericsson Group predicted that more than two-thirds of global manufacturers would move to the Asia-Pacific region by 2025, and Vietnam was considered an attractive destination.

In that context, according to Dr. Tran Thi Hong Minh - Director of the Central Institute for Economic Management: industrial parks in VEHEC must also quickly get acquainted, catch up and adapt to new investment trends.

In particular, sustainable development is becoming an urgent requirement, one could even say “irreversible”. Accordingly, policy movements cannot stop at the commitment of leaders and action plans, but must be realized in each enterprise and each industrial facility. This is where the development of eco-industrial parks and the conversion of industrial parks into eco-industrial parks are very important.

Industrial park development in general and in the Eastern Expressway axis must contribute more directly and strongly to green growth. And it must also help significantly improve the linkages between enterprises, especially between domestic and foreign enterprises.

Mr. Pham Duc An - Chairman of Quang Ninh Provincial People's Committee also pointed out: Proactively participating in the global supply chain and smart production chain, optimizing the production and supply chain is essential to improve the competitiveness of industrial parks. With the development of digital technology, artificial intelligence and automation, traditional models can no longer meet the requirements, it is necessary to change the mindset from individual production to developing a connected ecosystem, sharing information and resources, and building smart supply chains.

But more synchronous policies are needed to develop a smart manufacturing supply chain, according to Mr. Nguyen Le Huy - Permanent Vice Chairman of Hung Yen Provincial People's Committee.

And on the business side, it is also necessary to get acquainted with and adapt to new trends and prepare carefully to firmly enter the global playing field - Dr. Phan Huu Thang, Chairman of the Vietnam Industrial Park Finance Association (VIPFA) noted.

The subject is a Vietnamese enterprise.

Dr. Phan Huu Thang emphasized: Improving the production capacity of Vietnamese enterprises is a prerequisite for Vietnamese enterprises to quickly and firmly enter the global playground of production and supply of input products for foreign enterprises.

The Chairman of VIPFA noted: The requirements of the global supply chain are: There must be close connection between participating businesses, and at the same time, these businesses must also manage well the flow of information, products and financial issues to avoid losses and achieve maximum profits throughout the chain;

Another fundamental element in building a strong supply chain today and in the coming period is to digitize the relationship between buyers and suppliers. To do this, both buyers and suppliers must have the basis and conditions to effectively apply AI (artificial intelligence) and IoT (internet of things) technology, so that the supply chain can quickly pivot to alternative suppliers when disruptions occur.

This also requires Vietnamese enterprises that want to participate in the global production and supply chain to have sufficient high-tech conditions to meet the requirements in the current stage of economic digitalization.

Another condition for Vietnamese enterprises to participate in the global production and supply chain is to have high-quality human resources with sufficient qualifications to immediately undertake assigned work, which is still very lacking.

There are favorable opportunities for Vietnamese enterprises to participate in the current global production and supply chain. What Vietnamese enterprises need to do immediately is to overcome existing weaknesses (production capacity, technology and human resources). And enterprises need the State's support in terms of appropriate policies and financial mechanisms.

According to Dr. Phan Huu Thang, it is necessary to clearly understand that the subjects of developing the Eastern expressway industrial parks associated with linking the global production and business chain are Vietnamese enterprises. These include investors in infrastructure of industrial parks, enterprises in industrial parks, including enterprises with FDI capital.

However, most FDI enterprises when investing in Vietnam already have output. However, FDI enterprises in Vietnam are the input sources for the global production and supply chain of Vietnamese enterprises. Realizing this will help shorten the time to find opportunities for Vietnamese enterprises to participate in the global production and supply chain.

Therefore, Vietnamese enterprises focusing on producing and supplying input products for FDI enterprises in Vietnam will be one of the right development directions for Vietnamese enterprises to quickly participate in the global production and supply chain right in Vietnam. Therefore, improving the production capacity of Vietnamese enterprises is a prerequisite for Vietnamese enterprises to quickly and firmly enter the global playground of producing and supplying input products for foreign enterprises.

The fact that industrial parks fill up the land area allocated by FDI capital will open up greater opportunities for Vietnamese enterprises to participate in the production and supply chain right in Vietnam.

The solution to quickly fill industrial parks with FDI capital needs to be seriously and specifically calculated in each locality and sub-region, avoiding unhealthy competition among enterprises in the sub-region.

NT (according to Cong Luan newspaper)

Source: https://baohaiduong.vn/truc-cao-toc-phia-dong-lien-ket-thuc-day-chuoi-san-xuat-thong-minh-401045.html