Vietnamese enterprises realize dual goals

​Producing equipment and machinery for FDI enterprises and exporting at a domestic-invested company in Bien Hoa City

*Find the right direction

Although the global economy is recovering, it is likely that by the end of 2022 or early 2023, the production chain of many new goods will return to normal as before the Covid-19 pandemic. In Vietnam, the recovery of the economy is fast, but enterprises with domestic investment still have to strain themselves to find ways for stabilize production, increase revenue and ensure growth. Besides ensuring production and clearing output, Vietnamese enterprises also pay more attention to the application of modern technology, increase both quantity and quality of products and build brands to reach further.

Mr Pham Van Tai, General Director of Truong Hai Automobile Joint Stock Company says that in order to gain advantages in domestic and foreign markets, product quality must be good and prices must be competitive. Truong Hai succeeds and becomes as a well-known brand thanks to the improvement in production and business, changes in technology, unified management process from top to bottom.

Small and medium enterprises in Dong Nai increasingly focus on quality, design, and product cost reduction, because this is an important factor determining the success or failure of enterprises. In addition, domestic-invested enterprises in the same industry need close association, support, sharing of large orders to keep up with the schedule, agree on the price of goods to avoid dumping prices of a few businesses affecting the industry as a whole.

Mr Nguyen Thanh Nhan, owner of Thanh Nhan wood-art facility in Binh Minh commune (Trang Bom district) said: "Since the beginning of the year, the unit has received a lot of large orders from customers in the United States, Europe but had to refuse because it could not afford to meet. If only enterprises and fine art wood production facilities in the province could cooperate and support each other to fulfill orders, all would have benefit. However, the linkage is still weak, some enterprises in the production process still follow the quantity without ensuring the quality, so they have to pass up many opportunities to expand production and export”.

 

*Taking advantage of FTA

Currently, Vietnam is one of the leading countries in the world in signing FTAs. In particular, Vietnam participates in all three of the world's largest FTAs are CPTPP, EVFTA, and RCEP. FTAs help Vietnamese enterprises to expand exports to other countries at competitive prices with similar products from other countries. Besides, FDI enterprises invest in Dong Nai more and more and in order to enjoy tariff preferences, they must meet the product localization rate. Therefore, enterprises with domestic investment capital are easy to sell to FDI enterprises if their products meet the requirements of quality, design and competitive price.

Mr Le Tri Minh, Head of Dong Nai Supporting Industrial Enterprises Branch, Director of Dai A Thanh One Member Co., Ltd. said: "Small enterprises often face two major difficulties are lack of production space and investment capital for factory, modern machinery. If the above two difficulties are removed, enterprises will operate effectively and gradually expand production and business and become an important link in the product supply chain.”

According to Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc, Vietnam has attracted 136 economies to invest with a total registered capital of over 400 billion USD. Many FDI enterprises find sources of raw materials in the country when investing in Vietnam. This is an opportunity for enterprises with domestic investment capital to seize the opportunity to become partners with the FDI sector, promote export growth, bring goods and participate in the global supply chain.