Vietnamese supporting industry enterprises seek to enter the supply chain

Domestic supporting industry enterprises (SIOEs) have many opportunities to develop in the face of the global supply chain shift trend, of which Vietnam is one of the links. However, in reality, this industry still faces many difficulties.

Enterprises participating in trade connection at the Trade Connection Conference between Vietnamese enterprises and Japanese enterprises organized by the Provincial People's Committee in 2024. Photo: Vuong The

Along with investments in infrastructure, human resources, technology and support policies from the State, supporting industry enterprises are making efforts to improve their capacity standards to adapt to international standards to participate more deeply in the production supply chain.

The problem of improving the industry's capacity

Dr. Can Van Luc, Chief Economist of BIDV Bank, member of the Prime Minister's Policy Advisory Council, commented: In recent years, the system of policies and industrial development orientations has been supplemented relatively fully, creating a favorable legal corridor for enterprises. Thanks to that, the number of supporting industry enterprises is increasing, especially in the supply chain for key industries such as textiles, footwear, electronics and agricultural processing. There are many products that not only meet domestic demand but also participate in export and a number of large enterprises have gone deeper into the global value chain.

However, the supporting industry still shows many limitations: the localization rate is still low, many high-tech fields depend on imports, Vietnamese enterprises' products are limited to simple details, low added value... This entails the risk of not meeting the criteria of free trade agreements (FTAs), and are easily subject to high taxes. Vietnamese products are also at risk of being considered transit goods when the localization rate of some strategic manufacturing industries is still low...

Sharing the same view, Chairman of the Ho Chi Minh City Association of Supporting Industries (HASI) Vo Son Dien also acknowledged that despite its great potential, Vietnam's supporting industry is still fragmented, lacking cohesion, has not yet formed a complete "ecosystem" and still depends significantly on imported components and equipment.

According to Mr. Dien, the Southeast is the center of production, export and supporting industry of Vietnam. Therefore, connecting and developing this field in the region has a great impact on the development of the industry in general. This is the right time for enterprises and industry associations to connect to form highly competitive supply chains, meeting the needs of key industries, while improving the ability to integrate and expand export markets.

Currently, Dong Nai is making efforts to develop more industrial parks, expand clean land funds to attract investment. The province prioritizes fields with modern technology, supporting industry and targets a number of strategic industries such as semiconductor technology and aviation...

Businesses are making more efforts to enter the supply chain.

To be able to meet the increasingly high standards of the import market as well as the needs of FDI partners (enterprises with foreign direct investment) in Vietnam, enterprises must constantly make efforts.

Cat Thai Production and Trading Company Limited (Ho Chi Minh City) now has thousands of products of details and components. The company's main product lines focus on high-tech plastics, plastic pallets, recycled plastic granules; rubber parts; plastic injection molds, stamping molds; metal parts, metal stamping, mechanical processing: cutting, drilling, tapping; industrial solutions, hardware design, software...

According to Mr. Le Tuan Anh, Director of Cat Thai Production and Trading Company Limited, in order to develop step by step, over the years the company has made efforts to build a supply chain with the capacity to supply to many different companies.

In Dong Nai, although still small and medium-sized, some enterprises have gradually built up their own international customer system. Dai A Thanh Company Limited (Long Binh Ward, Dong Nai Province) specializes in manufacturing, assembling, and supplying all kinds of cable products for electronic devices such as: air conditioners, washing machines, refrigerators, televisions... Thanks to its efforts, Dai A Thanh has cooperated and brought its products to major brands such as: Aqua, Nidec Sankyo, Cicor Anam, Sowel.

According to Mr. Le Tri Minh, Director of the company, the enterprise tries to participate in the State and local industry development support programs. For example, thanks to the support of the Dong Nai Supporting Industry Coordinator Group, Dai A Thanh has cooperated with Japanese enterprises. Cooperating with FDI enterprises helps Vietnamese manufacturers gain more experience, improve their capacity, thereby gaining new partners, increasing the localization rate of products, contributing to promoting production development.

According to enterprises, along with general policies on the development of supporting industries, investment in infrastructure and human resources, the efforts of enterprises themselves are also very important. In the trend of shifting supply chains and production, Vietnam's supporting industries are expected to participate more deeply in the global supply chain, raising their position on the world industrial map.

Wang Shi

Source: https://baodongnai.com.vn/kinh-te/202509/doanh-nghiep-cong-nghiep-ho-tro-viet-tim-cach-vao-chuoi-cung-ung-f923c49/