21-Sep-2022 Intelesia |
Tuoitre News |
Changes in global supply chains and changes in global relations during the post-pandemic period have opened up great opportunities for Vietnam and its enterprises to participate in global supply chains, organized by experts, representatives and representatives of enterprises in Binh Duong Province. Said in a seminar. Last week on Thursday.
In his opening remarks at the symposium ‘Shifting Supply Chain Opportunities for Vietnamese Enterprises’, jointly organized by the Tuoi Tre (Youth) newspaper, the industry agency under the Ministry of Industry and Trade, and the Binh Duong People’s Committee, Le De Chu, The editor-in-chief of Tuoi Tre confirmed that the opportunities for Vietnamese businesses to participate in global supply chains are amazing, reflected through real stories.
In particular, a world-class bank visited a factory of a Vietnamese subsidiary industry firm and spoke highly of its modern and automated production line.
Also, during a visit to a mechanics and ancillary industry factory at THACO Industries earlier last month, a delegation from a large Australian firm was surprised at the Vietnamese firm’s plants and offices, which operated professionally as Australian ones. Huh.
Recently, several multinational groups have increased their investment in Vietnam.
As a case in point, Apple relocated 11 factories of Taiwanese companies that are part of its supply chain to Vietnam.
In addition, Denmark’s Lego Group commissioned a $1 billion factory in Binh Duong province.
Multinational conglomerate Techtronic Industries, which specializes in electrical appliances and home appliances with 12 factories around the world and 76 percent of its products being supplied in the US and Northern Europe, has invested $7 billion at Saigon Hi-Tech Park in HCM City. Launched an investment project of 650 million.
Several other foreign direct investment firms, such as Foxconn, Luxshare, Pegatron and Wistron, have also expanded their operations in Vietnam.
Additionally, Japanese enterprises expressed keen interest in increasing production in Vietnam even during the COVID-19 pandemic.
However, most Vietnamese industrial businesses are small and medium-sized with weak competition in quality, stability and prices.
There are currently about 2,000 enterprises producing spare parts and accessories in Vietnam, of which 300 are involved in the supply chain.
“From stories shared on the platform ‘Building Independent Industries 2022’, the executors found that a number of factors are needed, including intelligent policies, concrete steps in investment and production, a quick understanding of enterprise opportunities, and the support of experts and workers. so that ancillary industries will become the driving force for economic development,” Chu emphasized.
According to the chairman of the Binh Duong People’s Committee Vo Van Minh, the province has established a scientific and technological industrial park to encourage innovations through a ‘smart city’ project and to support industry enterprises and adopt the transformation of global supply chains. Develop policies. ,
Binh Duong has strengthened investment attractiveness, giving priority to high-tech projects, Minh said, adding that the province has attracted many large projects from both domestic and foreign investors, which contribute significantly to the province’s socio-economic development. gives.
However, sharing the country’s position, enterprises in the province still rely on imported materials.
The impact of the COVID-19 pandemic and the global situation have further exacerbated material shortages in many regions.
Binh Duong is currently home to about 2,300 enterprises operating in ancillary industries, but they only meet part of the demand.
Sharing similar views about the global supply chain shift, Phil Kyun Choi, director of South Korean business development in Vietnam, said that supply chains are shifting from China to other countries such as Indonesia, the Philippines and Vietnam.
For example, Samsung has a parts factory in Vietnam, which produces 60 percent of its products sold globally.
Companies with foreign investments in China did not consider relocation to other countries even during the US-China trade war, but they sought an alternative solution since the launch of the zero-COVID policy and the lockdown in Shanghai. is of.
“Vietnam is an option. Still, these businesses are weighing several aspects before moving their business from China to other countries,” Phil said.
Vietnam’s manpower is competitive in quality but less competitive in quantity.
In other words, Vietnam has a population of about 100 million, which is far less than the 1.4 billion people in China and India each, and the 280 million people in Indonesia.
In addition, Vietnam’s ancillary industries and logistics are not cost competitive, the South Korean expert said.
Following the Vietnam Supporting Industry Forum 2019 jointly organized by the newspaper and industry agency, the seminar is part of the ‘Building Independent Industries 2022’ forum launched by Tuoi Tre in July 2022.
Forum ‘Building Independent Industries 2022’ on exploring solutions to overcome barriers to develop the mechanical engineering sector and ancillary industries, as well as connecting enterprises, sectors and industrial clusters, contribute to developing Vietnam’s self-reliant industry is focused.
Article Source: https://www.intellasia.net/vietnam-braces-for-supply-chain-shifts-1093478