Enterprises in Ho Chi Minh City try to stick to the market

Thanks to enhancement of manufacturing productiveness, the domestic enterprises have gradually operated stably and effectively.

The sharp increase in foreign-invested enterprises producing end-products in Vietnam has opened up a large market space for enterprises supplying auxiliary products. However, according to experts, to be able to setting foot in the global supply chain, the domestic enterprises need to improve their production efficiency, improving the product quality with competitive cost.

Improve the production, reduce inventory

In fact, some enterprises have initially built a solid foundation thanks to efforts to reach out and access modern management methods through the training and improvement programs of Ho Chi Minh City that the Center of Supporting Industry Development is the main focal point. Viettronics and Mechanics Phu Tho Hoa Company (VIEMCO) is an example.

As one of the few enterprises in electronics and mechanical industry that still maintains its operation efficiency so far due to its focus on its strengths of processing molds, stamping products – plastic products, VIEMCO has just undergone 3 months of improvement under the support of Samsung experts. As a result, nearly 70 items have been improved, the factory is cleaner, the production is also more efficient (minimizing inventory from more than 13 billion VND to 9 billion VND, shortening mold replacement time from 30 minutes to about 6 minutes, etc).

Mr. Nguyen Duc Minh, Director of VIEMCO, said that in 2017, the company’s revenue reached about 1 million USD, rising 20% compared to 2016, profit increased by more than 10%. This year, revenue is likely to increase by about 30% thanks to having new customers. The profit is higher due to better loss control. “There is still a lot of work to do, from renovation of machinery and equipment, automation to personnel, marketing, etc. The plan is available, just start working. Small businesses are financially difficult. I just learned that Ho Chi Minh City has issued the Decision 15 to support businesses to borrow money, we will study more carefully to apply for a loan “- Mr. Minh said.

Continue to support key industrial enterprises

Recently, in the working session on solutions to increase competitiveness for Ho Chi Minh City, Chairman of City People’s Committee Nguyen Thanh Phong affirmed that Ho Chi Minh City continues to support capital, policies and land while helping businesses enhance the linkage in production, connecting businesses to boost investment promotion, technology transfer, etc.

Ho Chi Minh City is promoting economic restructuring, focusing on developing 4 key industries including mechanics, food processing, chemicals – plastics – rubber and electronics – information technology. As of 2017, the growth of these four industries reached 12.7% which is 4.8% higher than the overall growth of the industry. In terms of industry structure, electronics – information technology thrived (up 39.11%), the remaining 3 industries grew modestly, around 3.5%. Although the growth is still limited, in general, the electronics – mechanical industry has had many positive changes recently with a strong breakthrough of many enterprises.

Productivity and Quality Office