Vietnamese businesses must improve their capacity

VCN - Mr. Truong Thanh Hoai (pictured), Director of the Department of Industry (Ministry of Industry and Trade) said that besides the negative effects, the Covid-19 epidemic also brings many opportunities for Vietnam, especially in attracting invest in industrial production. However, Vietnamese businesses must improve their capacity to make the best use of these opportunities.
vietnamese businesses must improve their capacity State needs to activate support package for businesses
vietnamese businesses must improve their capacity Dong Nai Customs supports businesses in context of reduced revenues
vietnamese businesses must improve their capacity MoIT will continue support for businesses after epidemic: Minister
vietnamese businesses must improve their capacity

How do you assess the impact of the Covid-19 epidemic on industrial production in the world in general and especially in Vietnam?

Currently,disease is the challenge forthe global production chain. A country that develops strong domestic production chains will minimize the impact of incidents during the production process, especially natural disasters and epidemics. However, I think that it can only be minimized but is unavoidable because at present, countries and manufacturing industries depend on each other very much, no other country can organize an independent production chain.

In Vietnam, typical impacts that can be mentioned are electronics and the automotive sector. Currently with these two industries, parts and products have ahigh technology content, which is typical of firms and multinational corporations. For industries with structures of complex supply chains, such as the automotive or electronics industries, each multinational corporation has a supply system with suppliers that meet its specific technical standards. It is difficult to replace supply chains.

For other industries with simpler supply chains, such as textiles and footwear, other sources of supply can be replaced. Depending on the characteristics of the manufacturing enterprise, if the company merely processes the production materials as directed by the buyer, the material can be replaced. As for businesses that produce complete products, manufactured on the basis of their brands, it will be more difficult to find and replace the supply.

Besides the negative effects, does the Covid-19 epidemic offer any opportunities for Vietnam's industrial production, sir?

There are many opportunities. In the context of the China-American trade war plus the Covid-19 epidemic, multinational corporations have clearly seen the "China plus 1" strategy. All in a "basket" of China is a huge risk for multinational corporations.

For example, there are about 100 enterprises in the world's top 500 enterprises located in Wuhan (China), the epidemic has greatly affected the production chains of corporations. Avoiding risks, they will have to relocate their supply systems to surrounding areas. China is the world's factory, but China is also the world's leading consumer center, andpotential consumer market in the future.

In the near future, China will develop in a service-oriented manner as the income per capita gets higher and higher. The factory will gradually move out of China. Meanwhile, Vietnam has a very favorable geographical position close to China, a young population, stable politics and friendly investment attraction policies.If Vietnam thoroughly implements procedural reforms, improving the business investment environment, I think there will be great opportunities in attracting investment.

In order to take advantage of the opportunity to shift investment into industrial production of Vietnam as well as in the long term to avoid the passive situation of the current supply of raw materials and accelerate the development of supporting industries, it is identified asan important solution. Could you tell us about the Ministry of Industry and Trade’sstrategy to promote this field?

The development of supporting industries is a consistent policy of the Party and Government as well as the Ministry of Industry and Trade in the process of economic development.

However, supporting industries are capital and technology intensive, not ordinary processing industries. Meanwhile, Vietnamese enterprises have low starting points, very low production capacity, and are unable to meet the requirements of domestic production chains as well as global production chains.

In terms of attracting investment as mentioned, it must be said that, in parallel with investment attraction, it is necessary to improve the capacity of domestic enterprises to take advantage of the spread of investment attraction. If we want to do this, the effort of the enterprise itself is the most important and indispensable "support" hand of the Government. The Ministry of Industry and Trade is also designing policies to help businesses improve their capacity.

Has the Ministry of Industry and Trade developed production recovery scenarios after the disease is controlled?

Currently, the production chain is globally dependent. The epidemic mayend in one placebut break outin another place. For example, the import ofone hundred components with only one imported component in the affected market is also interrupted. Today, the most volatile factor is not knowningwhenthe epidemic will end. An indeterminate input is difficult to identify subsequent scenarios.

At the present time, it is important that what we can support businesses on measures and resources. During this time, businesses must maintain factories and workers, costly but absolutely no revenue. The support measures need to be implemented urgently, especially for labor-intensive industries such as textiles, footwear, and the total of employees is over six million. If we do not help businesses overcome difficulties, it will have a great impact on social security.

Thank you, Sir!

By Thanh Nguyen/ Quynh Lan

Related News

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.
Vietnam

Vietnam's daily import expenditure surpasses VND25,000 billion

VCN - From the beginning of the year to mid-October, on average, Vietnam spent more than USUS$1 billion (equivalent to more than VND25,000 billion) each day importing goods.
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.
Vietnam - UAE trade grows to billions of dollars

Vietnam - UAE trade grows to billions of dollars

VCN - Updated by the General Department of Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) sees a year-on-year increase of more than US$1.4 billion to nearly US$5 billion

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.
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".
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.
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