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Cooperation and production model transformation enhanced`

Update: 23-05-2024 | 15:22:40

Industrial innovation is an essential trend for businesses. Binh Duong is making efforts to cooperate and propose various options for renovation and production development to support businesses in innovating and developing production and business, contributing to the province's growth model transformation towards high value and sustainability.

The inevitible pathway

Mr. Jeong Joon Kyu, Director of the Korea Trade-Investment Promotion Agency in Ho Chi Minh City, said that in the face of the difficult and unstable global situation, the global economy is facing three major challenges: restructuring supply chains, responding to climate change, and digital transformation. This has created many challenges for the overall economy. To cope with global challenges in the future, the two countries need strategic directions. He proposed that the Vietnamese Government as well as local authorities should support businesses, especially those in manufacturing and technology, to improve their technological capabilities and develop production to meet new demands. Businesses themselves must also improve their technological capabilities.

Before the dependence on global trade, Mr. Jeong Joon Kyu proposed that Binh Duong needs to create conditions to restructure the supply chain. "Currently, many South Korean businesses have invested and participated in the supply chain in Vietnam in the direction of reducing production costs. However, with the trend of restructuring the supply chain, in the future, businesses in Vietnam, including Korean businesses in Binh Duong, need to shift to developing supporting industries to support the production process of creating finished products without relying on imports, Mr. Jeong Joon Kyu proposed.

Enhancing cooperation will help businesses transform their production models to create high-value products. In the photo: The opening of the exhibition showcasing typical Vietnamese-Korean products recently held in Binh Duong. Photo: Quoc Chien.

Mr. Nguyen Hoa Cuong, Deputy Director of the Central Economic Management Research Institute, shared that Binh Duong has implemented very well the preferential policies for high-tech industries, focusing on developing human resources, and planning economic zones. The local authorities have especially focused on developing infrastructure and listened to the needs of businesses, creating favorable conditions for their development. A specific example is that recently, Binh Duong has been attracting more and more businesses to invest, including many multinational corporations with significant investment capital.

Mr. Mai Hung Dung, Member of the Provincial Party Committee's Standing Committee, Vice Chairman of the Provincial People's Committee: "Binh Duong is promoting its leading role, together with Becamex IDC, to promote the establishment of high-tech industrial zones, green industrial zones, develop trade and services, focus on green transformation training, and promote digital transformation. The province especially creates conditions for businesses to renovate production processes towards greener, smarter, and more sustainable directions. These orientations have been incorporated into the provincial planning of Binh Duong province by 2030, with a vision until 2050, which will be submitted to the Government for approval in the near future.

Specifically, Binh Duong has attracted 2 large foreign investment projects, high-tech ones are the Toy Manufacturing Plant of Lego Group (Denmark) with a scale of over 1 billion US dollars and the Project of the world's leading jewelry company Pandora (Denmark) with an investment capital of 150 million US dollars. This is a favorable factor to promote production development and restructuring in the near future according to the general trend. In the coming time, the province needs to support businesses in restructuring production associated with digital application and sustainable green development.

Efforts made for the implementation

Mr. Mai Hung Dung, Member of the Provincial Party Committee, Deputy Permanent Chairman of the Provincial People's Committee, affirmed that in order to meet the development and investment attraction needs, Binh Duong has positioned itself in the vision of developing the Southeast region and the whole country. Particularly in the context of many changes in the world, Binh Duong has been and is transforming with many projects promoting production development from the internal resources of enterprises.

Mr. Jang Jin Han, Production Director of Orion Vina Food Company Limited, My Phuoc 2 Industrial Park, said that after nearly 20 years of production, the company wants to upgrade the factory in a modern direction. "We are collaborating with Vietnam Technology and Communication Joint Stock Company (VNTT) to improve production. The main goal is to design and build a smart factory based on the ISA-95 model, combining the application of advanced technologies in the 4th industrial revolution," Mr. Jang Jin Han said.

Discuss with us about cooperation, supporting businesses to restructure, innovate production models, Mr. Pham Tuan Anh, Director of Information Technology, Becamex IDC Corporation, said that restructuring production models requires a comprehensive approach, in line with digital transformation, green transformation, thoroughly addressing the relationship between economic development and environmental protection, harmonizing with the natural ecosystem. There may be many approaches, but with the experience of Becamex IDC, we do not start by choosing any technology, cutting-edge technology, but will start from analyzing the existing business model of our own business. Each business will have a different business model, customer segment, and development history, the premise for forming different corporate cultures.

At the recent exemplary South Korea - Vietnam product exhibition, South Korean companies showcase and introduce high-tech products. In the photo: Delegates are visiting a booth at the exhibition. Photo: Quoc Chien.

According to Ph.D. Pham Tuan Anh, "Business support needs to be based on an open process" where there is no common template for businesses. If a manufacturing business only focuses on trying to apply cutting-edge technologies such as IIoT, AI, Big Data, smart factories, etc. and neglects the evaluation of its digital resources, evaluation and standardization of its processes and standards, then forcing the application of technology sometimes produces adverse effects.

“From practical experience, we suggest that businesses should go straight into it, starting from the management and operation of production, lean, clearly defining the existing of the production line, thereby forming a list of specific objectives to be achieved to improve the production process at the factory. Thereon, the maximum automation technology solutions are only chosen with determination to achieve the set goals while being able to evaluate the investment efficiency from the process of planning solutions is available," Dr. Pham Tuan Anh said as proposing specific solutions for businesses.

Reported by Tieu My – Translated by Vi Bao

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