Economists suggest ways to access global supply chains
Nestor Scherbey, a senior advisor of the Vietnam Trade Facilitation Alliance (VTFA), has suggested Vietnamese cities and provinces establish an information database on foreign direct investment (FDI) businesses and domestic suppliers.
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The move aims to help local suppliers take part in the operation of the FDI enterprises, the expert said at a conference in Bien Hoa city, in the southern province of Dong Nai on April 4 which aimed to seek ways to improve the business climate and promote investment activities in Vietnam.
Scherbey further said that trade activities in the 21st century require the integration of global supply chains in order to facilitate the circulation of goods globally.
He suggested multi-national companies draw up and adjust their own global supply chains, to meet requirements on the rules of origins stipulated in the Trans-Pacific Partnership (TPP) agreement, the Vietnam-EU Free Trade Agreement and other trade deals.
The advisor described this as essential to help companies make the best use of tax preferences offered by such pacts when exporting their products to EU or TPP member nations.
Local authorities should conduct surveys on FDI businesses to study their demands for materials and intermediate goods, he said, noting that it is a must for local firms to prove that they satisfy profile-related requirements set by the agreements.
Dau Anh Tuan, head of the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI), said improving the provincial competitiveness index (PCI) to improve the business climate is crucial to attract investors and spur local economic growth.
A survey recently conducted by the VCCI among FDI and TPP businesses shows that Vietnam holds advantages in terms of tax, low risk of asset reclamation, political stability and positive business policies.
The respondents also described Vietnam as a safe destination, as evidenced through the increasing number of FDI firms investing in the country.
Economists said apart from the transport infrastructure and other services, investment in logistics infrastructure is necessary to facilitate international trade.
Scherbey added that the global supply chains are evolving rapidly, requiring goods to be available in warehouses.
