Last updated: Thursday, February 21, 2019


Opportunity for Businesses to Join Global Supply Chain

Posted: Thursday, November 09, 2017

“146 small and medium enterprises (SMEs) are supported on improving productivity; 1,153 employees are trained (92 per cent are satisfied with training quality); 91 per cent of joining enterprises see cost reduction; and 93 per cent of enterprises apply 5S methodology,” are impressive figures stated at the Forum on “Improving productivity for integration into global supply chain” hosted by VCCI - HCM in cooperation with the International Labour Organisation (ILO). This is the outcome of ILO’s Sustaining Competitive and Responsible Enterprises (SCORE) after five years being deployed in Vietnam.

In his opening speech to the forum, Mr Vo Tan Thanh, Vice President of VCCI and Director of VCCI - HCM, said, with ILO’s technical assistance together with financial supports from the Government of Norway and the Government of Switzerland via ILO, VCCI - HCM has cooperated with the SCORE project to develop training and consulting programmes for SMEs in the wood processing industry in Binh Duong, Binh Dinh, Dong Nai, Long An and Ho Chi Minh City since 2011. Then, the project was expanded for some key industries like supporting industries and garment and textile industries among others. The project aims to help enterprises to improve production, enhance productivity, reduce costs and ameliorate workplaces to sharpen their competitiveness. “In the current context of global economic integration and fierce competition, supporting the development of tools enabling enterprises to achieve sustainable growth is always a priority of pursuit and expansion by VCCI, businesses and partners,” he stressed.

Representing VCCI - HCM to inform SCORE achievements, Mr Nguyen Le Nhat Thanh said that the project was deployed in eight countries, including China, Indonesia, South Africa, India, Ghana, Peru, Columbia and Vietnam. In Vietnam, the SCORE project co-piloted by VCCI - HCM and ILO with the wood industry in 2011, piloted cooperation with Better Work in 2015 and expanded into the garment and textile industry and supporting industries in 2017. Remarkably, the project’s training programme is always adapted to actual needs of target enterprises. SCORE focuses on sustaining innovative programmes and encourages workers to engage in performance improvement and cost reduction to boost the overall productivity and performance of enterprises. To date, the project has supported productivity improvement for 146 SMEs in Binh Dinh, Tay Ninh, Binh Duong, Dong Nai, Long An and Ho Chi Minh City with many positive results: 852 consultant visits and training for 1,153 employees (92 per cent are satisfied with training quality); 91 per cent of joining enterprises see cost reduction; and 93 per cent of enterprises apply 5S methodology; 61 per cent of enterprises apply workplace improvement methods; production lines reduce 29 per cent of errors; and retrenchment rate drops 42 per cent. In addition, the project has helped local business associations to promote their roles like Binh Duong Wood Processing Association, Binh Dinh Wood Processing and Forest Product Association and the Handicraft and Wood Industry Association of Ho Chi Minh City.

Mr Chang Hee Lee, Director of ILO Country Office for Vietnam, said, the SCORE project has achieved very positive results in business support for better competitiveness and engagement in global supply chains. Topics and components of the project not only help businesses reduce costs and enhance productivity but also help improve working conditions for workers, promote corporate culture, strengthen internal capacity of SMEs, and create a favourable environment for enterprises towards sustainable development.

Speaking highly of SCORE results, Mr Othmar Christian Hardegger, Consul General of the Swiss Consulate in Ho Chi Minh City, said that the Swiss economy is similar to that of Vietnam in many aspects: SMEs make up 99.7 per cent of the business community and create two-thirds of jobs. “The Swiss Government is delighted to share its experience and resources with Vietnam and we are committed to making more efforts to support Vietnamese businesses to achieve sustainable development in the new phase by further funding the third phase of the SCORE project whose main contents are integrating national training programmes and facilitating Vietnamese businesses to join global supply chains,” he said.


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