MOIT VIETNAM | Increasing competitiveness: The springboard for businesses to deeply participate in the global supply chain

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Increasing competitiveness: The springboard for businesses to deeply participate in the global supply chain

10th December 2020 post by MOIT Vietnam

The trend of shifting investment flows of foreign investors to Vietnam and the impact of free trade agreements have opened up many opportunities for Vietnamese businesses to access new markets. However, to seize these opportunities depends on the capabilities of businesses.


It takes firm steps to overcome difficulties 

At the LEAN Marathon Summit 2020 with the theme "Development of manufacturing competitiveness - From strategy to action" by the Department of Science and Technology (Ministry of Industry and Trade), Energy Management Solutions Consulting Quality performance (P&Q Solutions) held, just taking place in Hanoi, Ms. Kieu Nguyen Viet Ha - Deputy Head of General Planning Department, Department of Science and Technology, Ministry of Industry and Trade said: 2020 is a real year difficulty and perhaps this is a "test" for the business community. In that "test", there are businesses that must slow down but there are businesses that are moving fast ahead.
"I believe that all businesses have their own lessons, lessons from failure to make better results and achieve greater success" - Ms. Kieu Nguyen Viet Ha said, at the same time it is said that, in recent years, although the enterprise has made great efforts in improving productivity, it is still short-term in nature. Therefore, with the past "trials", perhaps we need to have a strategic approach and really solid steps to overcome major difficulties and challenges in the business development process.
According to Ms. Kieu Nguyen Viet Ha: In 2012, the Prime Minister approved Decision 604 / QD-TTg approving the project "Improving productivity and quality of industrial products and goods" under the National Program " Improve productivity and quality of products and goods of Vietnamese enterprises by 2020 ”. In particular, the Ministry of Industry and Trade is assigned to assume the prime responsibility for, and coordinate with concerned ministries and branches, the People's Committees of provinces and centrally-run cities in organizing the implementation and administration of project activities.
In this project, one of the main objectives of the Ministry of Industry and Trade is to support industrial manufacturing enterprises to improve productivity, product quality and competitiveness by supporting enterprises. Applying advanced management systems according to international standards or modern innovation tools. LEAN (Lean Production Model) is one of the special priority tools to support exploitation business.Citing some of the main results of the project, Ms. Kieu Nguyen Viet Ha said: On the business side, we have supported about 500 pilot models and these models are bright spots in workshops and enterprises and gradually spread to workshops, factories as well as other businesses. We expect to have spillovers from the results of the Ministry of Industry and Trade's program on business activities in the industry.

An important premise for digital transformation businesses
P&Q Solutions Company is one of the units with strengths in innovation and productivity improvement. In recent years, the Ministry of Industry and Trade has implemented many activities with P&Q Solutions, starting with the desire to support businesses in recognizing and assessing what shortcomings enterprises have and need to fight to take steps to improve productivity. 

“We, together with P&Q Solutions, directly support LEAN projects and specifically in 2019 and 2020, we have supported about 20 businesses in 4 different industry groups. In particular, they have supported the implementation of very specific and useful tools such as tools to support the design process management process”- Ms. Kieu Nguyen Viet Ha stated.

LEAN is considered as a fundamental tool, an important prerequisite for businesses to continue to innovate further and further, especially, to continue on the path we are moving towards digital transformation and intelligence production.

In particular, at the present time, we are seeing many opportunities: The trend of shifting investment flows of foreign investors to Vietnam, when they see that Vietnam is a good market for them to develop and expanse production. In addition, the impact from free trade agreements such as CPTPP, EVFTA ... opens up many opportunities for businesses to access the market. However, to access the market depends on the capabilities of businesses.


“Currently, we are talking a lot about the story that we have to participate more deeply in the global value chain, so it is time for businesses to think about starting their own chain with development activities and develop their own values​​”- emphasized Ms. Kieu Nguyen Viet Ha. 

As an outsourcing company in the supporting industry, Mr. Nguyen Van Hung - Director of An Phu Viet Plastic Company said: To participate in the supply chain of global companies, businesses need to meet the criteria: Quality must follow international standards, competitive price, large volume, on-time incense delivery and social responsibility. Therefore, businesses must choose the right strategy for customers to focus resources to create survival and development. In An Phu Viet, besides a young and enthusiastic staff, the company has focused on investing in machinery and equipment continuously, without investment, it is impossible to produce the required difficult details of cutomer…

Mr. Pham Minh Thang - Director of P&Q Solutions Company shared: The implementation of innovative tools has created positive changes in awareness and breakthrough efficiency in productivity and quality for businesses. However, after about 2-3 years, many improvement activities and improvement movements of enterprises can hardly continue to be maintained sporadically and weakly. Because the improvement activities are not really planned and clearly oriented in the strategy of developing the competitiveness in the medium and long term of the business.


"Therefore, in addition to addressing immediate needs of businesses such as finding customers, responding to orders ..., businesses still have to focus on long-term policies, persevere with With a long-term strategic direction of improvement to enhance their competitiveness, only that can help businesses pursue success and build a firm position in the global supply chain "- Mr. Pham Minh Thang confirmed.