Medium and small enterprises put more effort to enhance technology in the revolution 4.0

VCN –With an open economy like Vietnam, the business development trends will be updated and accelerate rapidly due to industrial revolution 4.0. Therefore, enterprises, especially small and medium enterprises, must make every effort to catch up with trends and improve their development.  
tin nhap 20180403134856
Enterprises have to find ways to change the technology but they still need development support from the management authorities. Photo: Hồng Nụ

Catching up the trend

Mr. Ha Quyet Thang, Director of Kim Long Production and Trading Service Co., Ltd (a company specializing in production and manufacturing of mechanical parts and molds), said that enterprises have already to invest more and buy more new equipment. The company has invested 2 more new technology manufacturing machines from Japan, each machine worth 150 million yen, which is equivalent to about 4 billion VND excluding taxes. Thanks to the purchase of this equipment, the company has expanded its capacity; Moreover, this is the most modern machine with high accuracy that should help businesses increase the output of the product but reduce the delivery time, meeting the requirements of partners from Japan.

For companies with stronger financial strength, the change in technology is fierce. In addition to investment in machinery and equipment to produce 100% automation, many companies also develop the intelligent plant model, using artificial intelligence to control production. Typically, Thai Binh Shoes Manufacturing and Investment Joint Stock Company has equipped new technology such as programmable sewing machines, computer embroidery machines, laser cutting machines ... to automate the production stages; improve product quality, increase labor productivity and reduce risk in some production stages for workers.

As can be seen that the above investment, it has become a common trend by many Vietnamese enterprises with technology and equipment constantly changing. Especially when the Government of Vietnam has determined that enterprises are both the center and the driving force for the development of new technologies, intelligent industries and in commercialization and successful application of scientific and technological achievements into real life. Therefore, enterprises cannot stand outside, otherwise they will be backward technology and quickly leave the "play" in the market.

Therefore, in the past time, the authorities have many directions to promote the development of enterprises in the industrial revolution. For example, the Government's directive on strengthening the access to the 4th Industrial Revolution has required the improvement of the competitive business environment in order to promote the development of enterprises, creating conditions for enterprises in order to rapidly absort and develop new production technologies. Particularly, it must focus on promoting eco-innovation, start-ups, and guide the nation in the direction of building specific mechanisms and policies suitable to strongly develop innovative enterprises.

Create a "nipper"

Although understanding the importance of changing the technology of enterprises before the industrial revolution, but the problem is that Vietnam enterprises are still limited to be able to change, catch up with the trend. Especially when Vietnamese enterprises are mostly small and medium enterprises, so their financial capacity as well as management experience is lacking and weak.

In order to buy 2 precision mechanical manufacturing equipment, Mr.Ha Quyet Thang revealed that enterprises have to borrow up to 70% of the product value. But with a bank loan interest rate of 9.5% / year, the cost to a business increases quite a lot, so the company has to access funds from the “Small and Medium Enterprise Development Fund” (Ministry of Planning and Investment should get to 7% interest rate within 5 years). However, according to Mr.Thang, not all enterprises can access a cheap capital source. Banks and funds supporting enterprises only agree to capitalize when enterprises have prestige in business with a history of doing quality work.

In addition to the demand for capital, enterprises also need more support from management, but many businesses have not evaluated the effectiveness as expected. Having businesses reflect, 10 years ago, the People's Committee of HCM City had a policy to support 10% VAT for enterprises importing machinery and high technology. These devices are very expensive and 10% VAT base also is a great financial support; however, the replication of this model nationwide is still the desire of many enterprises. In addition, businesses also reflect on the lack of market information, trade; businesses are still tinkering to live.

Recently, the Government issued Decree 39/2018 / ND-CP regulating some articles of the Small and Medium Enterprises Promotion Law and Decree 38/2018 / ND-CP stipulating specifically on investment in small enterprises just starting up. Mrs. Hoang Thi Hong, Director of Small and Medium Enterprise Development Fund, said that this is the first time the legal framework for supporting small and medium enterprises has been promulgated under the law with very specific regulations for relevant agencies to promptly issue support mechanisms and criteria. Therefore, in the coming time, management agencies will identify the focus of support, build into specific programs. Typically, they will launch applications to support innovative enterprises on smart phones, help businesses to have easy access to connect with authorities ... to receive timely support policies.

Clearly, regulators are doing their utmost to help businesses innovate and improve their capacity to meet the demands of industrial revolutions. This is a necessity because international experience shows that behind a company there is always the Government with many forms of support, helping businesses develops sustainably and competitively in domestic and international markets. Therefore, when the management authorities find the right way; the company finds the right direction that will form a "nipper" for the development of the industry in Vietnam.

By Hương Dịu/Thanh Thuy

Related News

It is necessary to improve the financial capacity of four state-owned commercial banks

It is necessary to improve the financial capacity of four state-owned commercial banks

VCN - Facing with the current situation of the economy's capital needs and ensuring the safety of the banking industry, improving the financial capacity of state-owned commercial banks always needs to be done.
Vietnam is continuing to transform into high-value industries

Vietnam is continuing to transform into high-value industries

VCN - The stable growth rates, export-oriented economy, and increase of FTAs have helped Vietnam's production continue to shift to high-value industries. Accordingly, businesses focus on improving technology and promoting production along the value chain. Therefore, real estate developers need to pay attention to providing industrial parks that can meet this requirement.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version