Competitveness enhancement needed for global integration
Efforts for global integration
According to the Ministry of Industry and Trade (MoIT), there are currently about 5,000 processing enterprises providing components and spare parts for the automotive and mechanical industries, of those 70 percent are suppliers to domestic manufacturers, eight percent supply exporters and 17 percent are involved in providing both. Thus, only about 30 percent of Vietnamese supporting industry enterprises have engaged in the global supply and value chain.
There are currently about 5,000 processing enterprises providing components and spare parts for the automotive and mechanical industries |
Meanwhile, Vietnam has to import components worth tens of billions of USD a year to serve industries, with those for electronic and automobile industry alone valued at US$50 to 60 billion. This is an attractive and potential market for Vietnamese supporting industry enterprises to make efforts and rise to gain the market share.
Do Thi Thuy Huong, Vice President of the Vietnam Association for Supporting Industries, said that apart from the low starting point, the specificity of supporting industry requires capital and technology, which are two weaknesses of Vietnamese enterprises. In processing and manufacturing, most enterprises are small- and medium-sized, with limited development capacity and ability to meet requirements in the chain.
Supply chains developed by Vietnamese enterprises
Experts assess that global production supply chains are led by multinational corporations. Any enterprises that want to be a part of it must join in the chains. Therefore, the shortest way for Vietnamese businesses to enter the global supply chains is to link with multinational companies.
Pham Tuan Anh, Deputy Director of the Vietnam Industry Agency (MoIT), said that to help Vietnamese supporting industries participate more deeply in the global supply chain, in the coming time, it is necessary to strengthen linkage and stability in the supply chain for Vietnam's key manufacturing industries, such as textiles, footwear, electronics, and more.
“Also, Vietnam needs to complete its legal system, policies and mechanisms as a foundation to create motivation for industrial development, especially the research and development of a law on industrial development,” Pham Tuan Anh said.
In addition, changes in thinking and approaches to industrialization and modernization need to be made, shifting from developing industries that depends on processing and assembly to proactive and creative application of digital technology to production to improve productivity and competitiveness of domestic industry. The linkages between domestic enterprises with the FDI sector and global markets also need to be strengthened to take advantage of opportunities from free trade agreements (FTAs) and the 4th Industrial Revolution in order to help domestic supporting industry enterprises participate more deeply in the global value chains.
From the perspective of enterprises, Do Thi Thuy Huong expressed that supporting industry enterprises really need support from the State, first of all, in human resource training. Currently, it is very difficult for them to recruit high-quality workers in the processing and manufacturing industry because this is a harsh sector that requires high qualifications and knowledge, while the income level may not be high compared to that from other sectors.
See also
Ha Nam seizes opportunities to boost supporting industry development
15:15 | 07/10/2024 Support industries
Supporting industries catch new wave to make breakthroughs
17:00 | 03/10/2024 Support industries
Supporting industries a barrier to attracting FDI
09:43 | 30/09/2024 Support industries
Positive transformation: Supporting industries take on new responsibility
14:03 | 28/09/2024 Support industries
Da Nang to become high-tech and supporting industry hub
08:15 | 28/09/2024 Support industries
Hung Yen Province prioritizes high-tech and supporting industries
14:42 | 27/09/2024 Support industries
See more news
HCMC boosts supporting industry development
17:25 | 26/09/2024 Support industries
Southeastern localities develop support industries to modernise economy
17:33 | 21/09/2024 Support industries
Developing supporting industries needs to be a priority
11:37 | 14/09/2024 Support industries
Auto parts manufacturers manage to reach world level
06:10 | 12/09/2024 Support industries
Vietnam to boost semiconductor development with US support
15:54 | 11/09/2024 Support industries
Keys to making breakthroughs in supporting industry
08:20 | 10/09/2024 Support industries
Linkage with foreign firms needed to develop Việt Nam's supporting industry
09:20 | 26/08/2024 Support industries
Vietnam an emerging hub in global smart manufacturing
10:56 | 20/08/2024 Support industries
Ninh Binh prioritizes high-tech and environmentally friendly projects
16:28 | 19/08/2024 Support industries
Supporting industries become more attractive
14:29 | 13/08/2024 Support industries
Implementation plan for the US$3.4 billion Thu Thiem - Long Thanh railway project
21:57 | 12/10/2024 Society
Chinese Premier arrives in Hà Nội, beginning official visit to Việt Nam
20:40 | 12/10/2024 News and Events
RoK companies step up investment in hi-tech industries in Vietnam
17:48 | 12/10/2024 FDI
Vietnamese, Chinese Parties strengthen relations
17:38 | 12/10/2024 Vietnam and other regions
Top leader attends opening of new academic year at Vietnam National University of Agriculture
17:29 | 12/10/2024 News and Events
Multimedia
Vietnam-China trade ties: A growing pillar of partnership
10:00 | 12/10/2024 Infographic
Hanoi Liberation: Important milestones
15:39 | 09/10/2024 Infographic
Vietnam makes active contributions to ASEAN development
09:15 | 09/10/2024 Infographic
France becomes Vietnam's 8th Comprehensive Strategic Partner
08:57 | 08/10/2024 Cooperation
Two historic battles of the capital’s armed force and people
09:53 | 07/10/2024 Infographic
Vietnam turns to nuclear technology for development
10:05 | 12/10/2024 Policy
PM’s attendance at ASEAN Summits affirms Việt Nam’s spirit, vision in new era
07:50 | 12/10/2024 Policy
Multiple laws under review for revisions
08:55 | 11/10/2024 Policy
Top leader attends Hà Nội's Liberation Day anniversary, highlights potential to drive growth
20:31 | 10/10/2024 Policy
MoIT approves price framework to purchase electricity from Laos
08:38 | 11/10/2024 Energy
Foreign investors interested in green development, semiconductor industry in Vietnam
17:34 | 09/10/2024 Industry
Việt Nam seeks Japan's cooperation in hydrogen energy development
14:33 | 09/10/2024 Energy
Việt Nam's industrial production saw positive growth in nine months
14:20 | 08/10/2024 Industry
RoK companies step up investment in hi-tech industries in Vietnam
17:48 | 12/10/2024 FDI
Ca Mau Province accelerates public investment disbursement
17:29 | 11/10/2024 Investment
HCM City approves US$9b Cần Giờ coastal urban development project
10:04 | 11/10/2024 Investment
Bac Ninh leads nation in FDI attraction in nine months
18:05 | 09/10/2024 FDI
PM urges WB to provide concessional loans for key infrastructure projects
08:52 | 11/10/2024 Finance-Banking
DIC Corp completes buyback of $18.6 million in bonds
09:25 | 10/10/2024 Finance-Banking
Update on exclusive partnership between Manulife Vietnam and Techcombank
14:52 | 08/10/2024 Finance-Banking
VPBank, LOTTE C&F cooperate to provide financial service with “Buy now pay later” product
09:31 | 07/10/2024 Finance-Banking
Leveraging power of community to protect unique Yok Đôn ecosystem
14:49 | 09/10/2024 Environment
Little cooperation from zoo operators in mass deaths of tigers, lions, panther: authorities
09:18 | 08/10/2024 Environment
Issuing “passports” for forest visits
22:12 | 05/10/2024 Environment
Vietnam’s forestry sector leads in achieving net negative emissions
09:16 | 04/10/2024 Environment
Vietnamese youth set to excel in high-tech industries
15:45 | 12/10/2024 Science - Technology
Technology summit promotes sustainable digital economy in Việt Nam
10:35 | 12/10/2024 Science - Technology
Vietnam ready to turn off 2G service
16:34 | 11/10/2024 Science - Technology
Digital infrastructure strategy approved
09:50 | 11/10/2024 Science - Technology
Implementation plan for the US$3.4 billion Thu Thiem - Long Thanh railway project
21:57 | 12/10/2024 Society
Huge opportunities with North-South high-speed rail
09:47 | 12/10/2024 Society
Implementation of Red River Delta Region Planning approved
09:00 | 11/10/2024 Society
Nine Vietnamese universities make global rankings 2025
17:05 | 10/10/2024 Society
Fifteen Vietnamese banks named in the global top 500 banking brands
16:24 | 10/10/2024 Vietnamese Brands
Việt Nam's second rice brand enters picky Japanese market
09:03 | 10/10/2024 Vietnamese Brands
Ben Tre to export first batch of fresh coconuts to China in October
09:41 | 08/10/2024 Vietnamese Brands
Mê Linh harnesses the potential of OCOP products
09:36 | 07/10/2024 Vietnamese Brands
Việt Nam promotes location opportunities at Busan International Film Festival
09:41 | 11/10/2024 Culture
Hanoi – World’s Leading Culinary City Destination
16:15 | 10/10/2024 Lifestyle
Pride and patriotism: the ‘expat’ view
09:19 | 10/10/2024 Culture
German Film Awards winner opens Kinofest in Hà Nội
09:16 | 10/10/2024 Culture
Hà Nội develops tour to explore Thường Tín’s craft villages
09:32 | 11/10/2024 Tourism
Vietnam Airlines promotes tourism in Germany
09:27 | 10/10/2024 Tourism
Việt Nam sees surge of tourists from visa-exempt countries in 2024
09:46 | 08/10/2024 Tourism
Cultural tourism requires more investment to become cultural industry
09:24 | 08/10/2024 Tourism