Part 3: Catch the opportunity

Update: 06-06-2020 | 12:08:29

Rotating production capital, restructuring operations, perfecting the domestic supply chain ... are the solutions that businesses are actively implementing to rearrange the apparatus, anticipate opportunities for development.

Thai Binh Shoes Investment and Production Joint Stock Company focuses on applying technology to reach out to the world market.

Opportunities open

At a recent conference with key provinces in the southern key economic region in Ba Ria - Vung Tau, Prime Minister Nguyen Xuan Phuc affirmed that the Covid-19 pandemic in Vietnam was gradually under better control, the restart. The economy is particularly important to soon return to a new normal state. Following the Government's direction, post-Covid-19 economic recovery scenarios are being developed and promoted at national, sectoral and local levels. In particular, the Government has implemented many support measures such as extension of tax payment, reduction of fees, credit packages, reduction of electricity prices, social security ... with an unprecedented scale to support businesses before difficulties. Along with the right decisions at the macro level, many experts have said that Vietnam's economy after Covid-19 will continue to have many opportunities with developments in the world market.

In Binh Duong, according to Mr. Tran Thanh Liem, Chairman of the Provincial People's Committee, the Covid-19 epidemic was well controlled, the province's socio-economic situation has gradually recovered and had positive changes. Main industries maintained stable growth momentum with the Industrial Production Index (IIP) in May 2020 estimated to increase 5.63% over the previous month, up 4.05% over the same period, accumulated In the first 5 months, IIP increased by 4.84% over the same period. The main export industries of the province continue to grow, forecasting positive signals of the provincial economy.

For wood industry, a key industry, the growth rate has returned to be a positive restart. In the difficult context, the ratification of the Vietnam - European Union Free Trade Agreement (EVFTA) is highly appreciated by wood enterprises because it will bring many advantages to export, helping the industry gain more support to speeding up after the epidemic. According to Mr. Nguyen Liem, Vice Chairman of Binh Duong Wood Processing Association (BIFA), the timber industry exported to the EU has been enjoying 0% tax for many years, so the benefits from this agreement are mainly imported. It is estimated that each year Vietnam is importing about 1 million m 3raw wood (equivalent to 270 million USD) from EU countries, focusing on logs, sawn timber, vernia and plywood ... When the import tax to 0% will create advantages for wood enterprises to strongly shift through the market. The EU, bringing quality wood products, adding value and meeting the requirements of EVFTA's rules of origin.

In addition to material advantages, EVFTA also creates opportunities for Vietnamese businesses to access modern machinery and equipment as well as EU distribution channels. In particular, through the mandatory requirements and high standards of this agreement, businesses will grow up, improve their business administration, product development, production processes ... increase internal resources for the whole industry. However, in order for EVFTA's effectiveness to be maximized, the involvement of ministries, branches, associations and enterprises is required. Specifically, the State needs urgent and practical solutions on funding to support businesses to train, provide training, and provide sufficient favorable and difficult information of EVFTA.

To take advantage of EVFTA, the leather and footwear industry is also speeding up opportunities. Mr. Nguyen Duc Nhuan, Deputy General Director of Thai Binh Shoes Investment and Production Joint Stock Company, said that industrial revolution 4.0 is taking place on a global scale, strongly impacting on investment and production activities. and trade of all sectors, including the fashion industry. Revolution 4.0 will make a big change in production methods, profoundly changing the product value chain from research and development to production, logistics services to customer service. Recently, the company has focused on promoting technology development to meet the needs of major partners.

Perfecting the supply chain

According to the evaluation of supporting industry enterprises (SI), the Covid-19 epidemic still gives them certain opportunities, because after the supply of raw materials such as China, Korea, Japan. There are changes in the disease, FDI enterprises are considering plans to find domestic partners. Currently, domestic supporting industry enterprises are taking this opportunity to "step in" into the global supply chain.

However, Mr. Truong Thanh Hoai, Director of the Industry Department (Ministry of Industry and Trade), assessed that the level of production, business management and capacity of domestic supporting industry enterprises were low. The renovation of equipment, technology is slow, lacks of integration and supply for FDI enterprises is very limited, most of them only produce under small contracts. That fact is also the reason for many years, FDI enterprises often cooperate to import raw materials and equipment from foreign partners. To overcome this, enterprises must make efforts to remove weaknesses such as technological innovation and increase connectivity.

According to the recommendations of enterprises, in order for the project of supporting industry development to be put into practice, all branches and levels need to ensure a transparent, simple and easy policy for enterprises. At the same time, the regulations put forth a guarantee of uniformity, with a monitoring framework to assess effectiveness; quickly have effective solutions to connect domestic supporting enterprises with FDI enterprises.

Reported by Tieu My – Translated by Vi Bao

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Part 3: Catch the opportunity

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