300 Vietnamese enterprises participate in global supply chain

SGGP
According to the Ministry of Industry and Trade, there are 1,800 enterprises manufacturing components and spare parts in Vietnam but only around 300 enterprises participate in global production network of multinational corporations, accounting for around 17 percent.
Noticeably, in the automobile industry, in comparison with countries in the region, the cost of automobile manufacturing in Vietnam is about 20 percent higher due to small-scale production and low localization ratio.


At the present, localization ratio of cars made in Vietnam reaches an average of around 7-10 percent with low technology content. While localization ratio of other countries in the region  is at an average of 65-70 percent, especially Thailand has localization ratio of up to 80 percent.


The supply capacity of the country’s mechanical processing industry is still small in scale, weak in technology and lacks of diversity in products. In addition, low productivity leads to poor competitiveness. 


Therefore, in order for Vietnamese enterprises to qualify to participate in global supply chain, Vietnamese enterprises have to quickly apply industrial solutions and modern technology. They must improve product quality and productivity by investing in technology, equipment and smart solution, hereby, they will improve product quality, increase productivity, save labor cost and operation cost.

By Lac Phong – Translated by Thuy Doan

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