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

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.

More News

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".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
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 - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
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 countr
Mobile Version