Companies Using Products of Each Other: Not Just for Exchange

5:28:27 PM | 8/25/2014

"Two years after the Ministry of Industry and Trade of Vietnam launched the programme asking its affiliated enterprises to use products of each other but so far only 16 enterprises have registered to take part in it,” said Ho Thi Kim Thoa, Deputy Minister of Ministry of Industry and Trade. Quoc Anh reports.
She said 16 State-owned enterprises used products of each other with a combined value of VND71 trillion (US$3.3 billion) in the past two years. It is important that SOEs have tabled to discuss and seek specific solutions, even sign contracts, to boost the exchange.
Why did only 16 enterprises take part in the programme?
Indeed, locally made products are not diverse in designs and types while the quality is unguaranteed. Thus, they hardly compete with imported ones. The programme is just guiding, not mandatory with given criteria and levels of using products of each other.
Is that the reason why participating enterprises use products of each other as just a token of exchange?
I think that this is not just a simple “exchange” but the value of VND71 trillion proves the practicality and effectiveness of collaboration, which is based on the spirit of mutual sharing, cooperation and responsibility. In fact, problems still exist when enterprises give priority of using products of each other in particular and using Vietnamese products in general because regulations on procurement inhibit enterprises administered by the Ministry of Industry and Trade from joining equipment and material supply tenders. Besides, as capital arrangement is difficult while State fund is limited, some have to borrow from external sources which sometimes force the borrowers to use foreign products.
So, does the Ministry of Industry and Trade have any proposals for this programme to be more effective in the future?
We have asked the Government to introduce policies on capital support and connection of manufacturers and research units like institutes and universities to develop high-tech product manufacturing. The Government should also have mechanisms and policies to support well-reputed Vietnamese high-quality product manufacturers to join trade promotion activities and apply e-commerce to boost business performances.