Golden opportunity for Vietnam's supporting industry to break through
Sharing on the sidelines of the Conference on Strengthening Localization and Developing the Supplier System recently organized by VinFast , economic expert Pham Chi Lan affirmed that Vietnam now needs to develop domestic industry more than ever.
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Economist Pham Chi Lan. |
She pointed out that more than 50% of Vietnam's manufacturing industry is currently owned by foreign investors. In the context of changing global trade and the risk of high tariffs from major markets, Vietnam cannot continue to rely solely on the capacity of foreign investors. " Vietnam has no other way but to overcome its own internal strength, its own domestic industries, to prove that we are producing, my products and not foreign ones, including the accessories or spare parts ," the expert said.
Therefore, Ms. Pham Chi Lan especially emphasized the significance when at the event, VinFast announced many support policies for suppliers such as: Commitment to consume output products; 50% land rental fee incentive in the first 3 years, 20% in the next 5 years for partners building factories at two VinFast automobile manufacturing complexes in Hai Phong and Ha Tinh ; connecting Vietnamese enterprises with foreign partners... In addition, there are also promising goals of VinFast in the coming time such as increasing the localization rate to 80% by 2026 and the output of 1 million vehicles/year by 2030.
The former Vice President of VCCI analyzed that in the past, when foreign car manufacturers such as Toyota, Mitsubishi, Ford... entered Vietnam, these businesses often used their own accessories in other countries such as Thailand, making it difficult for Vietnam's auto accessories industry to develop.
“VinFast has emerged as a leader in the supporting industry, with a large scale and a commitment to purchasing all output products,” said economist Pham Chi Lan. She also believes that when supporting businesses work for VinFast with high standards and a commitment to international competition, this team will improve their global competitiveness and grow.
Economist Pham Chi Lan commented that VinFast’s commitment is trustworthy. “VinFast’s commitment is completely trustworthy, simply because VinFast wants to survive, develop in the Vietnamese market as well as international markets and expand, it must achieve those commitments,” Ms. Pham Chi Lan affirmed.
Unlike Thailand, Vietnam is creating its own Detroit with its own internal strength.
Also sharing his confidence in VinFast's plan, Associate Professor, Dr. Tran Dinh Thien, Member of the Prime Minister's Policy Advisory Council, Former Director of the Vietnam Economic Institute, affirmed that VinFast's support for Vietnamese supporting enterprises is not something that has just happened today but has been implemented for many years. The evidence is that VinFast's factory complex in Hai Phong has been and is reserving land with preferential conditions for a number of supporting enterprises.
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VinFast is creating a fulcrum for businesses to confidently upgrade their technology and human resources to participate in the supply chain in a sustainable manner. |
With the newly announced policies, especially the product consumption, the expert believes that VinFast is creating a fulcrum for businesses to confidently upgrade their technology and human resources to participate in the supply chain in a sustainable manner. This will create a truly sustainable link between VinFast and supporting businesses. "Thanks to that, VinFast will become a truly strong brand, and Vietnamese supporting businesses will link up into a sustainable chain and be competitive enough with the world," he believes.
The expert also sees great benefits for the country from the above connection. In addition to forming a modern production ecosystem, Vietnam will benefit greatly when national competitiveness is raised, along with jobs for tens of thousands of workers. Furthermore, according to him, it is also national confidence and pride when we can reach out to the world with our own strength.
Therefore, according to him, to provide effective support, the State needs to change its approach to supporting the business community, not spreading it out, but focusing on connection points that have the potential to spread.
“Instead of supporting each small and medium-sized supporting business in a very fragmented and “even” way, we should go through central businesses like VinFast – which are playing a role in shaping the value chain and have a long-term strategic vision,” he said.
If done well, according to him, Vietnam has a golden opportunity to become the Detroit of Southeast Asia, like Thailand has done with its strongly developed supporting industry.
“The opportunity is there, and we are even facing a golden opportunity. But unlike Thailand – where the supporting industry has developed thanks to the assignment of foreign companies – Vietnam is creating its own chain, based on internal strength,” said Associate Professor, Dr. Tran Dinh Thien.
NGOC MINH
Source: https://www.qdnd.vn/kinh-te/cac-van-de/chuyen-gia-vinfast-dang-tien-phong-dat-nen-mong-cho-he-sinh-thai-san-xuat-quoc-gia-833034
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