TNT
Tishwash:
so more of Vietnam is going global hmmmm
Vietnamese SMEs shown how to enter the global supply chain
HCM CITY — Việt Nam is among the top countries attracting foreign direct investmentin the Asia-Pacific region, but the rate of domestic small- and medium-sized enterprises (SMEs) participating in the value chains of foreign-invested companies is rather low, according to the Investment and Trade Promotion Centre of HCM City.
Speaking at the workshop on “How to become a qualified supplier to foreign firms” in HCM City on Tuesday, ITPC director Phạm Thiết Hòa said: “This is a paradox. Currently, SMEs account for 98 per cent of businesses in Việt Nam but only 21 per cent of them are linked to foreign supply chains. This rate is lower than in many countries in the Southeast Asian region such as Thailand at 30 per cent and Malaysia at 46 per cent.”
The application of poor technologies, low labour productivity, financial shortcomings, and lack of experience in working with foreign enterprises and high-quality and experienced workers were the main barriers preventing Vietnamese SMEs from entering the global supply chain, he said.
According to experts, manufacturers come to Việt Nam for low wages, but productivity in Việt Nam is also low at 1/18th of Singapore's, 1/16th of Malaysia's and 1/3rd of Thailand and China's.
Frank Weiand, FF linkage director, USAID LinkSME project in Việt Nam, said: “Global firms look for total cost to market.”
Low labour cost is only one factor of production whereas the total cost to market includes all costs including labour, materials, cost of capital (both investment and working capital), transport and logistics, duties, taxes and fees (both formal and informal), and others, according to the director.
“The inadequate local supply chain raises all costs other than labour, and also minimises local labour participation.
“Locating for low labour cost is the wrong reason for Việt Nam’s economy – a race to the bottom,” he said.
Domestic enterprises must make efforts to find ways to access and supply raw materials and equipment to foreign-invested firms, according to experts.
They could participate in the global value chain because many foreign investors have invested in the country and the country has free trade agreements with many countries.
The most important thing is that they need to actively seize opportunities. link
Fullsail:
We are in the right place, at the right time, with the right people, for the right reasons. An abundance to be Thankful, Grateful, and thoughtful for, at this very special once in a lifetime opportunity
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Tishwash:
so more of Vietnam is going global hmmmm
Vietnamese SMEs shown how to enter the global supply chain
HCM CITY — Việt Nam is among the top countries attracting foreign direct investmentin the Asia-Pacific region, but the rate of domestic small- and medium-sized enterprises (SMEs) participating in the value chains of foreign-invested companies is rather low, according to the Investment and Trade Promotion Centre of HCM City.
Speaking at the workshop on “How to become a qualified supplier to foreign firms” in HCM City on Tuesday, ITPC director Phạm Thiết Hòa said: “This is a paradox. Currently, SMEs account for 98 per cent of businesses in Việt Nam but only 21 per cent of them are linked to foreign supply chains. This rate is lower than in many countries in the Southeast Asian region such as Thailand at 30 per cent and Malaysia at 46 per cent.”
The application of poor technologies, low labour productivity, financial shortcomings, and lack of experience in working with foreign enterprises and high-quality and experienced workers were the main barriers preventing Vietnamese SMEs from entering the global supply chain, he said.
According to experts, manufacturers come to Việt Nam for low wages, but productivity in Việt Nam is also low at 1/18th of Singapore's, 1/16th of Malaysia's and 1/3rd of Thailand and China's.
Frank Weiand, FF linkage director, USAID LinkSME project in Việt Nam, said: “Global firms look for total cost to market.”
Low labour cost is only one factor of production whereas the total cost to market includes all costs including labour, materials, cost of capital (both investment and working capital), transport and logistics, duties, taxes and fees (both formal and informal), and others, according to the director.
“The inadequate local supply chain raises all costs other than labour, and also minimises local labour participation.
“Locating for low labour cost is the wrong reason for Việt Nam’s economy – a race to the bottom,” he said.
Domestic enterprises must make efforts to find ways to access and supply raw materials and equipment to foreign-invested firms, according to experts.
They could participate in the global value chain because many foreign investors have invested in the country and the country has free trade agreements with many countries.
The most important thing is that they need to actively seize opportunities. link
Fullsail:
We are in the right place, at the right time, with the right people, for the right reasons. An abundance to be Thankful, Grateful, and thoughtful for, at this very special once in a lifetime opportunity
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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