Find ways to a corporation for businesses in industrial parks

VCN - The country has nearly 300 industrial parks in operation, but with the requirement to join the global value chain, the issue of linkage and connection between businesses in industrial parks and industrial clusters needs to be concentrated on more.
Industrial parks are aiming for more sustainable development. Photo: ST
Industrial parks are aiming for more sustainable development. Photo: ST

It is difficult for businesses to sell small parts

Vietnam has 16 signed Free Trade Agreements (FTAs) and 3 FTAs under negotiation. According to experts, these FTAs often make requirements on industry chains, value chains and green production stages. Meanwhile, the country has about 418 established industrial parks, of which 298 are in operation with a total area of about 92.2 thousand hectares. Therefore, the space and opportunities for businesses to develop and link in the industrial park are huge.

But reality shows that currently, up to 98% of the total number of businesses in our country is small and medium-sized. Although there are many contributions to socio-economic development, most of them have not participated in the value chain or production chain of large enterprises and multinational corporations. According to the Ministry of Industry and Trade, the whole country has about 5,000 processing enterprises participating in providing components and spare parts for the automotive and mechanical industries. Of these, 70% of businesses participate in supplying domestic manufacturers, 8% supply to exporters and 17% participate in supplying both. Thus, only about 30% of Vietnamese supporting industry enterprises can participate in the global supply chain and value chain.

Not only that, the domestic supply chain is also facing difficulties for many businesses due to lack of resources and connectivity. According to Mr. Phan Dang Tuat, Chairman of the Vietnam Supporting Industry Association, in the current period of globalization, supporting industry enterprises find it difficult to sell small parts, so they are forced to manufacture part assemblies.

Also talking about the difficulties of businesses, an industrial parts and accessories manufacturing business shared that due to a lack of expertise and technology, businesses are still struggling to find a place and position in the production chain. Meanwhile, cooperation between businesses in the same industry and production area is still weak, unable to create a highlight for domestic businesses to catch the attention of foreign businesses.

Find a way to "symbiotic"

Therefore, experts and businesses say that businesses need horizontal and vertical connections in industrial clusters and industrial parks to cooperate in production and join the value chain. At the same time, mechanisms and policies are needed to form industrial parks for each industrial sector with the creation of an ecosystem that meets sustainable development standards as well as many activities to support Trade connections between businesses.

Talking at the recent Forum for Promoting Sustainable Development of Vietnam's Industrial Parks, citing experience from abroad, Ms. Vuong Thi Minh Hieu, Deputy Director of the Department of Economic Zone Management, Ministry of Planning and Investment, said, Denmark's Kalundborg industrial park has built a closed cycle and linkage capabilities, including 11 participating businesses benefiting from 7 cooperation networks, material exchange and 6 cooperation systems of exchange on water and energy, thereby reducing costs of businesses in the network, increasing the level of connection and development of production activities. Or the Korean eco-industrial park has been expanded to 150, helping manufacturing businesses combine to implement greener and cleaner solutions, save costs and optimize their production activities.

Therefore, for Vietnam, the representative of the Department of Economic Zone Management emphasized the role of the Provincial People's Committees in supporting investment in construction and upgrading of technical and social infrastructure projects, inside and outside the industrial park fence to support connection as well as transfer of advanced technology in the industrial park. Businesses are recommended to increase cooperation to use common production infrastructure systems, and can combine with third-party businesses outside industrial parks to realize industrial symbiotic connections.

Also on this issue, from the perspective of investors developing industrial parks, Mr. Ling Foong, Director of Sustainable Development of Frasers Property Vietnam, said that industrial parks need to go through stages of transition from industrial parks to industrial parks of a smart satellite urban industrial model to be able to meet production and living factors. Because Vietnam is becoming attraction for industrial production and logistics, developing and linking businesses in industrial parks is increasingly focused on bringing an effective, economical business environment, saving operating costs.

Sharing the same opinion, according to Ms. Tran Thi To Loan, Deputy General Director of Sao Do Investment Group, with regard to regulations on cooperation in production, to realize industrial "symbiosis" not only in production, but businesses can also "symbiotically" start from small issues such as services, sharing utilities, infrastructure or reusing waste... to increase the ability to connect, cooperate and support to develop together.

By Huong Diu/Bui Diep

Related News

Corporate profits enter recovery cycle

Corporate profits enter recovery cycle

VCN - The recently released Q1 2024 business results update by SSI Securities Corporation shows that corporate profits may have overcome the most challenging period and entered a phase of recovery and more stable growth.
Vietnam Customs affirms its role in the international customs community

Vietnam Customs affirms its role in the international customs community

VCN - Vietnam Customs has recently promoted cooperation and international integration in the customs field, bringing out many practical results and contributing to affirming the role and position of Vietnam Customs in international forums.
Ha Nam Ninh Customs Department promotes dialogue and removes difficulties for enterprises

Ha Nam Ninh Customs Department promotes dialogue and removes difficulties for enterprises

VCN – On May 10, Ha Nam Ninh Customs Department Customs- Business dialogue conference with more 130 processing enterprises in three provinces of Ha Nam, Nam Dinh and Ninh Binh to remove difficulties in implementing Customs policies and regulations.
Risk prevention solutions for export processing and production enterprises

Risk prevention solutions for export processing and production enterprises

VCN - Identifying common errors to comply with regulations, prevent risks, and limit mistakes arising in preparing final settlement reports is an issue which many export processing and production enterprises concern.

Latest News

Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).

More News

The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

VCN - Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend. Of which, the processing and manufacturing industry increased by 6.3%.
Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

VCN - According to a representative of the Ministry of Planning and Investment (MPI), investment by foreign corporations and businesses depends on many factors, but it is necessary to focus on factors related to Vietnam's readiness.
Exploiting the potential of Dong Nai

Exploiting the potential of Dong Nai's largest seaport

VCN - Phuoc An Port - the largest seaport in Dong Nai is expected to come into operation in July 2024, which will contribute to a significant increase in the amount of goods arriving at Dong Nai seaport. In order to meet the needs of import and export and create favorable conditions for businesses, customs management units in the area also need to change their model.
Hanoi calls for investments in six urban areas projects

Hanoi calls for investments in six urban areas projects

Hanoi is calling for investment in six urban areas projects in Dong Anh district worth a total of 34 trillion VND (1.3 billion USD).
The food industry aims to green packaging

The food industry aims to green packaging

VCN - Greening food packaging is not only a trend but also a strategic transformation of businesses to meet environmental requirements. Therefore, businesses need to focus on using environmentally friendly packaging materials that are easy to recycle while ensuring product quality.
"The key" to growth motivation for enterprises

"The key" to growth motivation for enterprises

VCN - Unlocking growth motivations is an urgent requirement from the Government to help enterprises and the economy quickly recover. But unlocking the driving motivations must be accompanied by drastic reforms in institutions and the business environment to create conditions and increase confidence for enterprises to step forward.
Exports of four localities achieve tens of billions of USD

Exports of four localities achieve tens of billions of USD

VCN - By the end of April, there are four localities and cities reaching an export turnover of US$10 billion or more, according to the statistics of General Department of Vietnam Customs.
Rapid greening of the logistics sector to avoid being "eliminated"

Rapid greening of the logistics sector to avoid being "eliminated"

VCN - In the current context, if criteria for greening the logistics sector are not quickly and immediately implemented, businesses will face significant difficulties in the future and gradually be "eliminated" from domestic and global business, trade, and import-export activities.
25 out of 28 northern localities report positive industrial production

25 out of 28 northern localities report positive industrial production

As many as 25 out of 28 northern localities reported positive annual growth in industrial production in the first four months of 2024, heard the 10th meeting of industry and trade sectors from 28 northern cities and provinces in Hanoi on May 17.
Read More

Your care

Latest Most read
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - From a business perspective, Mr. Dinh Minh Tam, Director of Co May Co., Ltd. (Dong Thap) said that in the first months of the year, the company's main export markets all grew well.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).
The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend.
Mobile Version