Vietnam enterprises: Constantly improving to reach the world market

Within the framework of the project “Improving the capacity of Vietnam’s private economic sector” by the International Finance Organization (IFC) / World Bank Group, there are 25 Vietnamese enterprises have been granted by the Corporations Multinationals have chosen to pilot innovation support to become developers and suppliers in the supply chain of these corporations.

The supplier development pilot program (SDP) is one of the typical activities to promote the development of supporting industry, which has been started since 6/2018, within the framework of cooperation between Industry Department and Ministry of Public Works Trade and the World Bank.

One of the special points of the program is the direct participation of 8 multinational companies including: Ford, Canon, Toyota, Panasonic, Denso, Bosch, GE and Schneider Electric.

The program will “mark”, select a list of potential Vietnamese businesses to support production capacity enhancement, to meet the standards of supporting the value chain of target industries such as automobiles , electronics, energy and household goods. Thereby, these businesses will become future Vietnamese suppliers for the multinational corporations above.

Improvement efforts to attract investment capital

According to information from the Department of Industry, the above 25 enterprises which were chosen have received consensus from multinational corporations for training support. These are enterprises with good production capacity, ensuring a stable source of goods for customers and are potential businesses ready to compete in the international market to join the global supply chain.

The implementation team includes foreign experts – the UK’s international consulting firm STTM Industry Forum, the National Experts and uses National Manufacturing Competitiveness Levels (NMCL) assessment tools. The high-level advisory group (CVCC group) was established to supervise and consult, to ensure that the program is effectively implemented, maximizing the benefits of Vietnamese suppliers and participating MNEs. Members include Leaders of Industry Bureau, WorldBank, Representatives of multinational corporations.

Although new improvements have been made in a short period of time, but some businesses have made significant changes compared to the original, some gradually approached big customer. For example, the company Le Group was supported by Toyota Vietnam to order, Hiep Phuoc Thanh Company was also evaluated by Toyota Vietnam, Toyota Thailand pass the 1 round, and Nhat Minh Company (North) increased orders from Canon Vietnam.

This shows that the awareness of production and business of Vietnamese enterprises has changed progress and the need to develop in global supply chains has been increasingly promoted.

Productivity and Quality Office