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VN’s supporting industries strive to be best in ASEAN

VN’s supporting industries strive to be best in ASEAN

HÀ NỘI: Vietnamese enterprises have the potential to participate in regional and global production value chains on par with the leading countries in ASEAN, because Việt Nam has been a top priority choice of multinational corporations.

However, in order to realise this goal, in addition to their own efforts, businesses also need the support of the State.

In the draft plan for sustainable development of Vietnamese private enterprises, the Ministry of Planning and Investment (MPI) aims to raise the rate of enterprises participating in regional and global production networks and value chains, equal to the leading countries in ASEAN 4 by 2030.

In fact, it is not easy to achieve this target. Statistics from the MPI show that Việt Nam has only 21 per cent of small- and medium-sized enterprises (SMEs) participating in global value chains, while this figure in Thailand is over 30 per cent and Malaysia is 46 per cent. Therefore, in order to improve rankings in ASEAN, it is certain that Vietnamese enterprises must “go faster”.

However, that does not mean that businesses need to be afraid because Việt Nam has a number of opportunities. Evaluating the opportunities for Vietnamese enterprises to participate more deeply in the global value chain, Minister of Industry and Trade Trần Tuấn Anh said that the recent change in global value chains has placed Việt Nam in a more important production base.

Previously, some East Asian countries such as Japan and the Republic of Korea chose China and ASEAN countries as production bases for export to their trading partners. However, China is gradually becoming a consumer market instead of a manufacturing centre, especially in the context that the US-China trade war may take a long time, so ASEAN countries, especially Việt Nam have the opportunity to become an alternative destination for investment.