Strengthening Business Connection

2:08:47 PM | 11/30/2022

As one of the major industrial centers of auto mechanics, motorcycles and electronics in the North, over the years, Vinh Phuc province has strengthened its support for connection between the province's businesses and FDI enterprises, thereby creating conditions for enterprises in the province to access advanced and modern technology and deeply participate in the global supply chain.

Determining the importance of building linkage chains, Vinh Phuc has implemented activities to support linkages and connect provincial enterprises with FDI enterprises. The focus is on promoting investment and trade, improving the investment environment, and creating favorable conditions for businesses in the province to approach advanced technology and deeply participate in the global supply value chain.

Currently, Vinh Phuc province has 16 domestic enterprises participating in the supply chain of motorcycles, electronics, automobiles, agricultural machinery and mechanical engineering for FDI enterprises in Vietnam. They account for 5% of more than 300 enterprises nationwide that are the first-class suppliers of FDI enterprises, ranking 4th nationwide. Many local enterprises are associated with FDI enterprises and receive support from FDI enterprises in applying advanced management tools, technical standards and appointing experts to assess quality standards.

However, the number of enterprises participating in the direct supply chain for FDI enterprises is very small; the rate of domestic enterprises participating in the supply chain is not high. The reason is that domestic enterprises are small in scale, so they have difficulty in mobilizing resources to invest in technology, have not actively participated in linkages or are not confident enough to meet quality requirements and standards. Besides, the linking capacity is limited, the cost of products of domestic enterprises is too high compared to similar products produced by FDI enterprises.

In order to improve innovation ability, create conditions for the province's businesses to have the opportunity to participate in the supply chain for FDI enterprises, toward the global supply chain, in the coming time, Vinh Phuc will build and establish a specialized group to promote linkages, connecting enterprises in the province with FDI enterprises.

At the same time, the province will develop preferential policies on production premises for DDI enterprises to invest in priority industries of the province; form industrial clusters linking sectors and fields with industrial parks in order to establish an industrial ecosystem; and improve the capacity of the province's DDI enterprises according to each group of enterprises, meeting the requirements of FDI customers to join the global supply chain.

By Tran Ngoc, Vietnam Business Forum