The challenge of achieving self-sufficiency in raw materials and components.

Entrepreneurs from the Dong Nai Young Entrepreneurs Association seek opportunities for product collaboration between businesses and members. Photo: V.Gia

For businesses, increasing investment in infrastructure, collaborating to utilize domestically produced products, and achieving self-sufficiency in production are essential paths to advancement for both the business and its brand. However, this is a long process that requires support.

Increase the value of the product.

For businesses, when they can partially control their raw material supply, thereby producing finished products or supplying inputs to other entities, their production and business efficiency will be enhanced.

Duy Khanh Mechanical Engineering Co., Ltd. is one of the leading companies in Ho Chi Minh City. This company has gradually grown to become a capable and large-scale producer, supplying products to end-user businesses.

According to the company's Chairman of the Board, Do Phuoc Tong, to meet customer demand, the company has invested nearly 200 billion VND in equipping new production lines. Participating in the supply chain has created momentum for the business to change and keep up with the scale and needs of its partners.

Through investments in upgrading facilities, the company has acquired a modern production line for manufacturing products such as motors, pumps, hand tools, sewing machines, and automotive motion control systems, ensuring a supply that meets the standards of many international brands. The company has researched and developed new products based on market demand, instead of relying on outsourcing as before. As a result, the company has enhanced the value and position of its products within the production supply chain.

Nam Long Co., Ltd. (located in Long Thanh district) is one of the top 10 manufacturers of natural rubber gloves, and has consistently received the "High-Quality Vietnamese Product" award for many years. The company's products have become a trusted item for seafood and maritime companies.

Mr. Le Bach Long, Director of Nam Long Co., Ltd., shared that thanks to proactively securing raw materials, the company can be more flexible in production and business. Specifically, the company's main raw material is domestically sourced rubber latex, which is very advantageous. According to Mr. Le Bach Long, besides exports, the domestic market is one of the priorities in the company's development plan, contributing to promoting the development of the domestic rubber industry and enhancing the position of Vietnamese products in the home market. The company has invested in a new production line, increasing capacity and focusing on producing synthetic rubber products that are resistant to oil and heat, in order to better meet the increasingly diverse needs of the market.

A long-term problem

Self-sufficiency in production is a desire of businesses and the economy , but this is not something that can be achieved overnight; it requires a long-term strategy. In reality, many manufacturing businesses, especially small and medium-sized enterprises, still largely depend on foreign markets for raw materials, particularly for high-quality products.

According to Mr. Dinh Duc Dien, Director of An Gia Door Co., Ltd. (Long Thanh district), the company specializes in manufacturing aluminum and steel doors to supply services for high-end residential and construction projects. Because the market is geared towards the high-end segment, the products receive high demand from material suppliers. Therefore, currently, the company's raw materials and accessories are still heavily dependent on foreign manufacturers, especially those from Germany. In the future, the company will strengthen cooperation and use more products from domestic partners.

According to the Department of Industry (Ministry of Industry and Trade), to develop supporting industries, it is necessary to gradually achieve self-sufficiency in domestic raw materials and components. Vietnam is accelerating the formation of industrial development support centers in the North and technical support centers in the South. These two centers play a crucial role in supporting innovation and providing technical assistance to industrial enterprises, especially supporting enterprises. The Ministry of Industry and Trade supports and encourages localities to establish industrial innovation centers in areas with favorable conditions for industrial development.

In Dong Nai, developing supporting industries has been a top priority for the province for many years, aiming to achieve 21-23% of total industrial output. Dong Nai is orienting towards developing more supporting industrial zones and clusters, along with incentive policies, especially those related to finance, taxation, technical support, and management.

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