Enterprises need to reduce risks of disruptions of raw material supply

Many enterprises said that the production value of the food and foodstuff processing industry was growing well at a meeting to discuss solutions to minimize risks for food processing enterprises organized by the United Nations Development Program (UNDP) in association with the Food and Foodstuff Association of Ho Chi Minh City on July 3.
In the first six months of this year alone, despite the impacts of the Covid-19 pandemic, the industry's production value still increased by 1.18 percent compared to the same period last year. However, to maintain the growth momentum, enterprises need to tackle the potential disruptions in the supply of raw materials. The association said that the current source of imported materials for domestic production has decreased to around 40 percent. However, these are refined materials that have not been produced by any factory in the country or they are produced but for the supply in the chain only, instead of for the distribution to the domestic market.

Many enterprises recommended that the Government should promote the selective attraction of enterprises producing refined raw materials with the requirement of deducting a certain percentage of production to supply to the domestic market.

Ms. Do Thuy Van, the representative of UNDP in Vietnam, said that along with strong investment attraction solutions, the UNDP committed to supporting the Government of Vietnam to implement the business integrity program to increase the competitiveness index of enterprises as well as the national economy. This commitment will not only be implemented in the public system but will be extended to businesses.

A recent survey conducted by the UNDP showed that more than 50 percent of enterprises said they have been paying unofficial expenses. This has reduced the competitiveness index of enterprises as well as the national economy. Due to this fact, the Government has aggressively dealt with the negative aspects of the administrative management system, especially reducing harassment and corruption in the public system. On the business side, 14 business associations have signed a commitment to conduct business with integrity.

Other news