Global competitiveness conference held in Hanoi

The conference was organized by the Vietnam Ministry of Industry and Trade (MOIT) in collaboration with the EU-Vietnam Multilateral Trade Project, whose mission is to create a vibrant domestic manufacturing industry in Vietnam.

Senior government officials, leaders from Vietnamese and transnational manufacturers, along with other professionals from the business community and academia participated in the dialogue.

The Government is now working towards plans for developing domestic manufacturing over the next decade. These are segments that impact a wide spread of other segments and sub-segments and have a significant impact on export revenues and employment of the country overall.

The goal is to enable the domestic companies operating in these segments to develop rapidly and become globally competitive as well as profitable and play a leading role in the growth and development of the country’s economy.

The Government has in the past underlined its commitment to develop these segments. In fact, in response to governmental policies, transnational companies from many different countries and major global brands are now operating manufacturing businesses in the country.

The overarching objective of the conference was to help improve the competitiveness of the Vietnamese companies in these segments so that they could become a contributor to sustainable employment generation and to the economic development in the country and help move the country to middle income status.

It also intended to provide inspiration for practical action, as well as set the stage for a continuous dialogue and joint action amongst stakeholders from the private, public and social sectors of Vietnam.

Professor Pham Tat Thang of the MOIT emphasized that the segments were three of the key manufacturing industries prioritized by the Government.

He noted there were three areas that were important for creating the backbone for the segments: investment in the implementation of social and environmental standards across value chains, strengthening skill development for qualified personnel and promoting local and sustainable supply chains.

Sustainability, he said, was an issue that needs to be considered in the entire clothing, textiles and footwear value chains from field to fashion.

Vietnam has the potential for sustainable manufacturing in the segments for several reasons including a large trainable labour force that can provide for the needs of the labour-intensive clothing and textiles industry.

Pham Nguyen Minh, director of the Trade Research Institute in turn dilated on the overdependence of domestic companies on imported raw materials from foreign nations and possible solutions.

Bui Huy Son, director general of the Vietnam Trade Promotion Agency, echoed Mr Minh’s sentiments saying that though Vietnam has signed bilateral and free trade agreements with a variety of nations too much reliance on imports of intermediary and raw materials is a drag on profitably and hence sustainability of the segments.

Lastly, Professor Pham Tat Thang an expert from the MOIT stressed that Vietnamese domestic companies also lack practical business experience and the management skills needed to become competitive in the global marketplaces.

They need to do their homework, equip themselves with complete and accurate knowledge of foreign marketplaces and with their laws and regulations to enhance their competitive edge.

Most importantly, added Professor Thang, they need to learn to innovate to make themselves successful entrepreneurs and competitive with their peers from foreign countries.