If it reaches a higher position in global value chains, it can attract more foreign direct investment (FDI), thereby creating more jobs and opportunities for local suppliers. Face the barriers are not new.
According to a report by the World Bank (WB), only 9% of enterprises operating in Vietnam meet international standards to participate in the global supply chain.
However, if you look directly at the reality, most of the qualified enterprises are FDI enterprises, local enterprises, if they are involved, are only secondary suppliers and only supply products. Simple, value added is not high.
Nguyen Duc Hong, Deputy General Director of Thong Nhat Rubber Company, said that the company has five production plants and is supplying auxiliary products to a number of foreign corporations operating in the fields of automobiles and electricity. , electronics, mechanics, minerals ... However, products of the company can only sell to secondary suppliers, not sold to the end user, so the value added is not high.
For example, the rubber sole of Thong Nhat is used for the entire Innova brand car system, but the company has to sell this product to the secondary supplier that is the manufacturing company. This is not to mention, to become a supplier, the company must have a quality certificate of each type of product supply, provided by an independent international rating agency, at a cost of 15,000 USD / time and after 3 years must conduct re-evaluation.
Mr. Charles Kunaka, Chief Specialist of the World Bank, said that the opportunities for domestic enterprises to join the manufacturing industry are shrinking as large enterprises such as Samsung, Toyota, Ford ... often use the supplier network. global reach. High value-added processes such as innovation, design, spare parts, core components ... are still implemented outside of Vietnam. Enterprises operating in Vietnam, including domestic enterprises are difficult to meet this requirement.
Le Bich Loan, deputy head of the HCM City Hi-Tech Park Management Board, said that there is a great swing between domestic and FDI enterprises and it is difficult to shorten. be this gap. When they invest in FDI, they always have a global supply chain with them, and they also express their willingness to use this supply chain.
Therefore, in order to be competitive, domestic enterprises must have greater internal force, quality and quantity of products stable with more competitive prices, otherwise there must also be more innovative products. Meanwhile, in terms of production scale, technology level, investment capital, product quality, management level ..., Vietnamese enterprises are weak and almost unable to catch up with technology change. large FDI enterprises.
Need a breakthrough solution
Representatives of Samsung Group in Vietnam said that Vietnam should orient the roadmap to join the enterprise in the global value chain. Initially, it is possible to select enterprises with potential to develop and support production cooperation with foreign enterprises to learn and transfer technology. The next step is to support capital to expand the scale of investment, improve the quality of production and quality management ... Along with that, to build and nurture the creative team, facilitate the connection and increase the transfer. technology from FDI enterprises.
Asya Akhlaque, WB's chief economist, said the need to change the way management and support businesses. Accordingly, there should not be too many management agencies and support enterprises to develop supporting industries as now, leading to overlapping in the implementation process but the efficiency is not high. Regulators must have the authority and capacity to implement corporate support policies.
In addition, it is necessary to improve labor skills and infrastructure development, taking into consideration factors connected with the countries in the same supply chain to increase the ability to connect the market. Restructure the market economy towards more equitable competition. In certain areas, there is a need for government intervention to promote the sector ...
Phan Duc Hieu, deputy director of the Central Institute for Economic Management, acknowledged that our policy has two weaknesses: too general and fragmentary thinking. The design of industrial parks in the direction of specialists seemed very good, but in fact is very inadequate because it can not create production connection chain. Therefore, it is necessary to change the thinking of supporting enterprises and the support must be very specific.
According to the Investment Review
- Sangshin Electronics (06.06.2022)
- Chinese FDI inflows into Southeast Asia skyrocketed (22.08.2019)
- Samsung reply information "have 200 plan plan added to external in Vietnam" (05.07.2018)
- How to solve the problem of economic development in Vietnam? (12.04.2018)
- Vietnam attracted 166 FDI projects in January -18 (03.04.2018)