Vietnamese Manufacturers Need to Enhance Competitive Advantages

9:48:22 AM | 8/18/2022

Vietnamese manufacturers need to improve their competitive advantages to enter global supply chains, said Mr. Matsumoto, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City.

At the signing ceremony of a cooperation deal between Metalex Vietnam 2022 and Supporting Industry Show 2022, Mr. Matsumoto said that 2021 was a very difficult year when the COVID-19 pandemic seriously affected world economies. Especially for the manufacturing industry, the once-well-established global supply chain has been disrupted, leading to a halt in production. It is now essential to rebuild a supply chain that does not depend too much on any fixed country. In that context, Vietnam has received a lot of attention from FDI investors. According to a survey by JETRO of Japanese firms investing abroad, 55.3% of surveyed Japanese firms said they “will expand” business development in Vietnam in 1-2 years to come, the highest in Southeast Asia. In Asia, this figure is only behind India, Bangladesh and Pakistan.

Japan's Ministry of Economy, Trade and Industry has also carried out aid policies since 2021 by diversifying overseas supply chains. Of the 103 projects selected after five rounds of consideration, Vietnam has 41 projects. This figure also shows a high level of concern for Vietnam and that Vietnam's position has been increasingly affirmed in the eyes of foreign investors.

However, besides the advantages, Vietnamese businesses are also facing many challenges, especially their own limitations and inadequacies, he said. In order to deeply penetrate global supply chains, Vietnamese manufacturers need to improve their competitive advantages by upgrading their machinery and technology, increasing productivity, reducing consumption, improving human resources and bolstering better cooperation in the chain. Besides, some problems such as product quality and incomplete techniques that lead to obstacles to the procurement of components and materials in Vietnam also need to be addressed. “Resolving ‘bottlenecks’ in industrial production in Vietnam is really difficult. Metalex Vietnam 2022 and Supporting Industry Show 2022 are the perfect answer to this problem,” she emphasized.

Agreeing with Mr. Matsumoto, Mr. Vu Trong Tai, General Director of RX Tradex Vietnam, said that in the future, Vietnam will become a production center and a solid pillar for the growth and development of ASEAN. To do this, Vietnam's manufacturing and supporting industries must become a thriving pillar in the region. Therefore, in addition to removing bottlenecks in human resources and infrastructure, Vietnam needs to prioritize resources for industrial development with globally competitive quality and productivity, keep the growth momentum of FDI inflows, increase localization and promote supporting industries to cover entire value chains.

With that significance, Metalex Vietnam 2022 and Supporting Industry Show 2022, set to take place on October 6-8, 2022 at Saigon Exhibition and Convention Center, will be an opportunity for manufacturers to discover necessary solutions and technologies to support production expansion and development. “Through these two major exhibitions, we hope to help Vietnamese manufacturers catch up with new trends in time, come up with solutions by upgrading machinery and technology, optimizing production and developing human resources to confidently compete with international firms while creating a connection network for Vietnamese enterprises. Metalex Vietnam 2022 will continue to promote its important position in the manufacturing sector in Vietnam as an ideal destination for suppliers and customers to exchange connections, facilitate business expansion and exchange technology,” he stressed.

My Chau (Vietnam Business Forum)