Sharing with Công Thương reporters recently, a business representative operating in the supporting industry sector said that the opportunity for domestic enterprises to participate in the global supply chain is huge, especially in the context of many large corporations in the world have chosen Vietnam as a “stop”, these corporations have poured billions of USD, even billions of USD into Vietnam to build factories and consider Vietnam as an important production “stronghold” in their global supply chains.
Many global corporations choose Vietnam as a “stop” (Photo: SEVT)
In particular, in the process of investing and operating production and business in Vietnam, many large corporations in the world also expressed their desire to find domestic suppliers of accessories to reduce costs of money and time for businesses due to importing accessories and components from abroad. A typical example is Samsung Group of Korea, which has now invested in Vietnam with a capital of up to nearly 20 billion USD, present in many provinces and cities of Vietnam such as Bac Ninh, Thai Nguyen, Hanoi, Ho Chi Minh City.
In particular, this group is also very eager to find domestic manufacturers of spare parts and accessories. To realize that desire, Samsung has coordinated with the Ministry of Industry and Trade in developing supporting industry enterprises through the Smart Factory Development Cooperation Project in 2023 for enterprises in the provinces of Bac Ninh, Hanoi, Ha Nam, Hung Yen and Vinh Phuc. Previously, in 2020, Samsung Vietnam coordinated with the Ministry of Industry and Trade to launch the project to advise Vietnamese enterprises in the Southern region…
It can be said that the opportunities for Vietnamese supporting industry enterprises are wide open, but to seize this opportunity is not simple, especially according to statistics from the Ministry of Planning and Investment, up to 97% of Vietnamese enterprises are small and medium-sized enterprises, they are weak and lacking in many aspects, in which, as Dr. Nguyen Hoa Cuong – Deputy Director of the Central Institute for Economic Management Research (CIEM) said, “the first problem is where the money is” – a not insignificant challenge for the small and medium-sized enterprise sector.
Lack of capital causes businesses to miss the opportunity to participate in the global supply chain (Illustrative photo)
Mr. Luu Van Dai – Director of Metal Heat Vietnam Joint Stock Company said: How to participate in the global supply chain of large corporations is a problem that many Vietnamese mechanical businesses are “headaching” to find an answer. Because businesses see a lot of opportunities, but without money, they dare not invest and do not have the ability to invest.
This challenge becomes even more difficult when products participating in the supply chain of large corporations must meet at least 2 criteria, which are quality and price. This requires businesses to have good technology, find an optimal production method to reduce production costs and reduce product prices. Because good technology will optimize production, create high-quality product lines, and reasonable prices.
Many businesses believe that accessing advanced technology in the world or studying advanced technology is not a difficult task for Vietnamese businesses, but capital is the biggest problem that domestic mechanical businesses are very weak. Because to invest in new technology, businesses need a lot of money, but a small business will hardly have enough financial resources to invest in modern technologies, and start-up businesses will face even more difficulties in accessing this technology.
The equity of small and medium-sized enterprises in Vietnam is really very difficult to invest in new technology. Bank borrowing is again faced with many barriers because not only do they have to pay high interest rates, businesses must also have assets as collateral. Meanwhile, where do small businesses and start-ups get collateral? So how many businesses dare to invest in new technologies?. Not to mention that the interest rate on bank loans is high, the selling price of businesses must also be high, so domestic businesses lose their competitiveness compared to foreign businesses.
In fact, there have been many government policies on capital support for small and medium-sized enterprises, however, when applied in practice, businesses still face many difficulties and barriers when accessing capital from banks, or if they do, it will cost a lot more. time and opportunity cost of the business.
Accordingly, solving the capital problem for small and medium-sized enterprises is currently considered one of the optimal solutions, in order to create opportunities for enterprises in particular and the economy in general. Because businesses are the backbone of the economy , not only creating GDP growth, but also creating jobs for workers.
