Update news global supply chain
Minister of Planning and Investment Nguyen Chi Dung said that Vietnamese enterprises’ participation in the global value chain is very modest in both quantity and quality.
As supply chains have been stretched thin thanks to the pandemic, manufacturers are adjusting their strategies to respond to the current constraints.
Vietnam’s merchandise trade balance in the first half of the year resulted in a trade deficit. Last year, it had a trade surplus for the same period.
Years of economic growth and success in fighting Covid-19 paved the way for Vietnam to receive shifting FDI inflows, but limited participation in manufacturing industries might hinder its progress.
“If enterprises want to join the global supply chain, don’t think local,” said Nguyen Anh Tuan from Samsung Vietnam.
Being among the first countries in the region to reopen its economy, Vietnam should take the advantage to build upon the foundations for proactive resilience, stated PwC Vietnam.
The US is planning to remove some of its supply chain out of China and has invited other countries for a dialogue on this issue, including Vietnam.
Apple is making clearer signals in the production of components and products in Vietnam, opening up opportunities for Vietnam to participate more deeply in the global value chain.
The disruption of materials supply chain from major markets to Vietnam has led to a lower growth rate of the industrial production index in the first two months.
Great opportunities are available, but the capability of Vietnamese enterprises to join global supply chains remains low.
VietNamNet Bridge - In the last 30 years, Vietnam has attracted massive amounts of FDI but has missed opportunities to develop supporting industries.