Boeing, the world’s leading aerospace company based in the US, is accelerating cooperation with Vietnamese suppliers and universities to provide a foundation for long-term industrial growth, according to Boeing Vietnam Country Director Michael Nguyen.
Vietnam’s garment-textile exports are likely to encounter a host of challenges in terms of both market and supply chain in the second half of this year despite positive results in the first half, heard a seminar in Ho Chi Minh City on June 21.
Norwegian Ambassador to Vietnam Grete Løchen and Commercial Counsellor Arne-Kjetil Lian recently have handed over the 'Vietnam Supply Chain Study Report' to Vietnamese Minister of Industry and Trade Nguyen Hong Dien.
After entering the stage of socio-economic recovery and development for more than a month, Ho Chi Minh City still faces many unprecedented difficulties and challenges. The most difficult problem for enterprises currently is the increase in production costs due to measures to prevent the Covid-19 pandemic, as well as obstacles in inter-provincial transportation of goods and labor shortage.
Eighteen percent of orders of European enterprises have moved out of Vietnam. Previously, many large FDI enterprises of Japan and South Korea had also informed Vietnamese enterprises producing supporting industrial products about moving some orders to neighboring countries. To avoid the risk of disruption in the domestic supply chain, Vietnamese enterprises have applied many solutions to maintain production.
Following the directions of the Government, the Ministry of Industry and Trade has coordinated with relevant ministries, sectors, and agencies to implement measures to improve the competitiveness of businesses operating in supporting industry, thus promoting the growth of the sector.
Due to Covid-19, factories have had to downscale or stop productions, creating an excess of goods containers at various ports. As a result, Tan Cang - Cat Lai port (TCCL) has come up with urgent solutions to maintain the flow of import and export goods.
Ms. Phan Thi Thang, Vice Chairwoman of the People's Committee of Ho Chi Minh City, on August 3, chaired a meeting on removing difficulties with food and foodstuff producers. Many enterprises said that the inconsistent application of social distancing measures to fight the Covid-19 pandemic among localities had been causing many difficulties for businesses, especially small and medium-sized ones.
More than 12,000 enterprises have to leave the market every month. Not to mention that in the past two months, when the situation of the Covid-19 pandemic became complicated, many enterprises had to temporarily suspend operations because they failed to ensure the three-on-site production and the work of transporting workers from their residences to the workplace.
The Department of Industry and Trade of Ho Chi Minh City, on the evening of July 6, said that it has focused on activating scenarios and plans to create sources of essential goods to ensure the balance between supply and demand of goods with specific solutions.
In the first four months of this year, foreign investment flows still poured strongly into Vietnam, with a total capital of US$10.13 billion, an increase of 18.5 percent year-on-year. This is a positive signal, promoting economic development in the context that the whole country has been joining hands to prevent the Covid-19 pandemic.
Domestic enterprises face difficulties not only in investment and business activities but also in seeking investment capital. So, what are the chances for Vietnamese enterprises to evolve and rise to become the leaders, capable of ushering the supply chain of Vietnamese enterprises to spread farther?
Five months after the EU-Vietnam Free Trade Agreement (EVFTA) took effect, many agricultural export products increased in both volume and value. However, some key export products of Vietnam have not taken advantage of the EVFTA yet, such as cashew, honey, and sugarcane industries.
Many domestic enterprises participating in the Forum on Linkage and Investment Opportunities for Small and Medium-sized Enterprises, held by the US Agency for International Development (USAID), in association with the Department of Industry and Trade, and the Saigon High-Tech Park (SHTP) on December 9, affirmed that joining the global supply chain of supporting industry products is not difficult. The remaining problem is weak internal resources, so they cannot supply any high value-added product.
The risk of a new outbreak of Covid-19 in Europe and the US has been raising concerns that supply chains of raw materials for production will break again. Therefore, foreign direct investment (FDI) enterprises that manufacture end products in Vietnam have been accelerating their capacity to expand domestic supply chains.
The Management Board of the Saigon High-Tech Park, on October 28, collaborated with the Department of Industry and Trade of Ho Chi Minh City to organize the signing ceremony of a regional association agreement on the development of a network of supporting industry products with Long An, Binh Duong, Dong Nai, and Ba Ria - Vung Tau provinces.
As air and road supply of raw material from China is cut off due to the rampaging nCoV virus, most Vietnam-based companies have to rethink their strategy in face of the impending hindered factory operation.