Hai Phong 'bridges' domestic supporting businesses 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 the recent connection conference organized by the Hai Phong Economic Zone Management Board, the issue of cooperation between FDI enterprises and local supporting enterprises was raised as a strategic direction, aiming to create a sustainable supply chain right on the spot.

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

According to Mr. Le Trung Kien - Vice Chairman of Hai Phong City People's Committee, Head of Hai Phong Economic Zone Management Board, this "handshake" brings mutual benefits to both sides.

For FDI enterprises, having quality local suppliers 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.

On the contrary, for domestic enterprises, this is the "shortest way to reach international level". When becoming partners of multinational corporations, domestic enterprises are forced to upgrade comprehensively according to strict standards of quality and management processes. This not only helps them to have stable orders but also improves their competitiveness, opening the door to all markets in the world .

"To operate a factory of LG's scale, they need hundreds of suppliers, from screws to logistics services. This is a potential playground, a golden opportunity for Vietnamese businesses," said Mr. Le Trung Kien.

When becoming partners of multinational corporations, domestic enterprises are forced to upgrade comprehensively according to strict standards on quality and management processes. Photo: Dinh Muoi.

As the leading locality in the country in attracting FDI with "eagles" such as LG, Pegatron, Bridgestone..., Hai Phong is facing a great opportunity for domestic enterprises to participate more deeply in the global value chain.

To turn potential into reality, at this conference, both sides made specific proposals. LG Display representatives suggested that the city build a digital database of supporting businesses and have policies to support them in accessing international certifications. Meanwhile, Vietnamese businesses want the FDI sector to be more transparent about the demand for components and products in order to have appropriate investment orientation.

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

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

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