Connecting, supporting enterprises to join global supply chains

On the afternoon of September 15, provincial People's Committee in collaboration with the Department of Industry under the Ministry of Industry and Trade organized a seminar on “The shift of supply chains - Opportunities for Vietnamese enterprises". The seminar was attended by more than 250 guests, including leaders of ministries, central sectors and localities in the southern region. Attending the seminar, on the side of Binh Duong province, there were Vo Van Minh, Vice-Secretary of provincial Party Committee, Chairman of provincial People's Committee; Nguyen Van Danh, Vice-Chairman of provincial People's Committee and representatives of industries’associations, enterprises, experts at home and abroad.

Taking opportunities from the "wave" of displacement

Speaking at the workshop, Vo Van Minh, Chairman of provincial People's Committee affirmed that through this workshop, Binh Duong hopes to contribute to clarifying shifting trends, opportunities and challenges of enterprises in the formation and development of supply chains while acting as a bridge for enterprises and industries’associations to meet, connect and expand production-business activities.

Experts and investors discuss issues raised at the conference

In fact, anticipating the shift of the supply chains also means the realization of the endogenous strength, enhancing the strength of enterprises. Phil Kyun Choi, representative of the Korean business sector said that this is an opportunity for Vietnamese enterprises to participate in the supply chains. Enterprises need to promote specialized industrial compounds, human resources, technology and perfect a network of logistics...

Representing the “leading” enterprises, Do Minh Tam, General Director of Supporting Industries & Mechanics Corporation (THACO Industries under THACO Group) said that the corporation is ready to associate and cooperate with small and medium-sized enterprises to share about markets, orders, human resources, technology and management..., thereby coordinating in production and business, participating in the global supply chains together.

In Binh Duong, 4,000 FDI enterprises and over 58,000 domestic ones have worked and developed, step by step forming up and participating in the supply chains. However, in order to raise the supply chains and welcome the shifting chains, Binh Duong still has many problems that need to be supported.

Lai Xuan Dat, Deputy Director of provincial Department of Planning and Investment said that since 2016, in a bid to plan and connect to support enterprises to participate in the global supply chains, Binh Duong is urgently making a master plan in line with the trend of the world. However, the province is looking forward to the national master planning, sectorial planning, regional planning along with new mechanisms and policies with the expectation of removing bottlenecks and increasing the strength of the business community in order to deeply participate in the global supply chains.

Mechanisms, policies close to reality needed

Le Duy Nhat Luan, Technical Director of Japanese-invested Takako Vietnam Co., Ltd in VSIP 1 affirmed: “Looking at the actual development mechanism, it is necessary to consider what we have to welcome the supply chains. With the current level and policies, it is difficult for us to welcome and raise the supply chains. Currently, Vietnamese enterprises are not entitled to incentives in terms of interest rates, land resources and finance to develop resources and management. In fact, Vietnamese technology and resources can all meet requirements and that is proven by the fact that FDI enterprises rely on Vietnamese resources to develop production. However, enterprises need mechanisms, especially money and land to develop. This needs the support of the Government and ministries in specific regulations.”

Representatives of investors discuss on the sideline of the seminar

Mr. Dat said that in order to anticipate and participate in the global supply chains, Binh Duong cannot do this alone. The province needs to get coordination from localities, ministries, sectors and decisive policies of the National Assembly and Government. Binh Duong has proposed the Government to strengthen the direction of ministries and sectors to promulgate documents concretizing the Government's Resolution No.115 on solutions to promote auxiliary industries to ensure rapid, synchronous and substantive development. Relevant ministries and sectors need to issue a preferential mechanism for loans to build centers/markets to import and supply input materials for production for a number of industries in which each province has certain advantages.

The Ministry of Industry and Trade needs to have policies and solutions to form up or improve the linkage chains between enterprises, especially small and medium-sized ones and large enterprises, domestic enterprises and foreign-invested ones. Binh Duong needs to closely coordinate with ministries and central sectors to advise in planning policies and ways to bring economic subjects closer together and work together to build supply chains in the near future.

Reported by Tieu My-Translated by Kim Tin

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