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Small firms in supporting industries eye entry into global supply chains

2020-12-11 17:05

 

Small and medium-sized enterprises in supporting industries connect with foreign firms at a forum on Linkage and Investment Opportunities for SMEs held in HCM City on December 9. VNS Photo Thu Hằng

HCM CITY — Getting access to information, strengthening market linkages and joining supply chains will help Vietnamese small and medium-sized enterprises in supporting industries recover from the disruptions caused by the COVID-19 pandemic, experts have said.

Nguyễn Phương Đông, deputy director of the Department of Industry and Trade, said building business linkages in various sectors and industries would help them expand their capacity and facilitate their integration into regional and global supply chains.

His department had implemented various programmes to help SMEs in supporting industries improve their market access and competitiveness and establish business ties with multinational investors, he told a forum on Linkage and Investment Opportunities for SMEs held in HCM City on Wednesday.

Hong Kong-based Techtronic Industries (TTI) has invested US$650 million in the Saigon Hi-Tech Park and is now searching for local suppliers to increase the use of local parts in its manufacturing in Việt Nam, according to Đông.

Small firms in supporting industries could build linkages with TTI through business matching, he added.

Robert Greenan, US Deputy Principal Officer, said: “SMEs, including those in supporting industries, play an important role in Việt Nam’s economic growth. However, due to their limited capabilities, lack of market linkages and disruptions in global supply chains caused by the COVID-19 pandemic, SMEs in supporting industries are struggling to find new customers and to explore new market opportunities.

“Global supply chains have also been shifting due to the COVID-19 pandemic. Vietnamese enterprises can be more adaptive and resilient to capitalize on the opportunities that arise from the transitions in the global supply chain.”

The United States Agency for International Development, through the Linkages for Small and Medium Enterprises project, is working closely with the Ministry of Planning and Investment, and engaging business support organisations such as the Centre for Supporting Industries Development, to facilitate linkages between Vietnamese SMEs and lead firms.

In September the 2020 Sourcing Fair for Supporting Industries was held in HCM City, attracting almost 65 firms including 14 lead firm buyers and 49 SME suppliers.

Lê Bích Loan, deputy head of the Saigon Hi-Tech Park (SHTP), said the park organised many high-tech supporting industry development programmes to help local firms connect with lead firms, including business matching activities between foreign and Vietnamese enterprises at the park and regional linkages with export processing zones and industrial parks in the provinces of Bình Dương, Đồng Nai, Bà Rịa- Vũng Tàu, and Long An.

The park had developed 162,000 square metres of high-rise factories for local enterprises in supporting industries, she said. — VNS

 

 

 

 

 

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