Hai Phong 'bridges' domestic supporting enterprises and FDI enterprises

Instead of operating in parallel, FDI giants and domestic supporting enterprises in Hai Phong are being closely connected, opening up opportunities for both sides.

At a recent networking conference organized by the Hai Phong Economic Zone Management Board, the issue of cooperation between FDI enterprises and local supporting businesses was raised as a strategic direction to create a sustainable supply chain right on-site.

Mr. Le Trung Kien, Vice Chairman of the Hai Phong City People's Committee and Head of the Hai Phong Economic Zone Management Board, shared the benefits of domestic supporting businesses and FDI enterprises at the conference. Photo: Heza.

According to Mr. Le Trung Kien, Vice Chairman of the Hai Phong City People's Committee and Head of the Hai Phong Economic Zone Management Board, this collaboration brings synergistic benefits to both sides.

For FDI businesses, having quality suppliers right in the local area helps them reduce dependence on imports, shorten production time, optimize costs, and increase operational efficiency. They will have a more stable, flexible, and less risky supply chain.

Conversely, for domestic businesses, this is "the shortest path to international expansion." By becoming partners with multinational corporations, domestic businesses are forced to comprehensively upgrade to meet stringent quality and management process standards. This not only helps them secure stable orders but also enhances their competitiveness, opening doors to markets worldwide .

"To operate a factory the size of LG, they need hundreds of suppliers, from screws to logistics services. This is a highly potential playing field, a golden opportunity for Vietnamese businesses," Mr. Le Trung Kien remarked.

When becoming partners with multinational corporations, domestic businesses are forced to comprehensively upgrade to meet stringent standards of quality and management processes. Photo: Dinh Muoi.

As the leading locality in the country in attracting FDI with major players like LG, Pegatron, and Bridgestone, Hai Phong is facing a great opportunity for domestic businesses to participate more deeply in the global value chain.

To turn potential into reality, both sides presented specific proposals at this conference. LG Display representatives suggested that the city build a digital database of supporting businesses and implement policies to help them access international certifications. Meanwhile, Vietnamese businesses hoped for greater transparency from FDI regarding their component and product needs to guide their investments accordingly.

In response, Hai Phong leaders pledged that the Economic Zone Management Board would act as an effective "bridge," actively providing information and improving the investment environment, and called for proactive efforts from both sides to soon form sustainable industry clusters.

With nearly $43 billion in FDI capital invested in industrial parks and economic zones, promoting this linkage is seen as a strategic step to help Hai Phong consolidate its position as a high-tech industrial center of the country.

Source: https://nongnghiepmoitruong.vn/hai-phong-bac-cau-cho-doanh-phu-tro-noi-dia-and-doanh-nghiep-fdi-d781716.html