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Small enterprises to join the global supply chain

After investing in Dong Nai industries, large enterprises wants to find domestic material suppliers to help reduce import costs. Due to the high product localization rate, enterprises can now manufacture actively and receive advantages when exporting their products to the countries signing the trade agreement with Vietnam.​


​Thus, if the domestic enterprises can meet the product quality and quantity standard; they can join the multinational corporations’ supply chain. Becoming a supplier for multinational corporations means the enterprise is now in the global supply chain.

 

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 Manufacturing at Dongjin Vietnam Jsc (Long Binh IZ – Bien Hoa). An enterprise looking for a domestic enterprise to cooperate to increase product localization rate.
 
Strict requirements
 
The domestic material demand from foreign enterprises who are investing to Dong Nai and the nearby province is remarkably high. Their products are not only for domestic markets but also for export. Therefore, their material demand is high and strict. Product quality is the priority and it must meet the global standard, followed by the quantity demand and the other demands on labor and environment…
 
Deputy Director of C.P Vietnam (Bien Hoa 2 IZ) Le Nhat Thuy, who is in charge of finding material suppliers for the company said: “The breeding food manufacturing industry alone has 400 domestic material suppliers with the capacity of 4 million tons/year. The company’s business is still expanding, therefore, if there are any company that can meet the product quality demand can ask us to join the supply chain”.
 
To supply cereal material to C.P Vietnam, an enterprise shall meet the strict global quality standard. After being certified, the company can sell 150 thousand tons of cereal a year to C.P and can event export the product many other strict markets. Joining the global supply chain, the enterprises can confirm their brand, have advantageous output and high revenue” – said Mr. Nguyen Tuan Nam – Director of Khai Anh – Binh Thuan import, export commerce limited company (Binh Thuan province). With the advantageous output, his enterprise can connect and offtake agricultural products for farmers from any provinces.
 
Mr. Nobyuyasu Ohashi – Director of Tiger Vietnam Co. Ltd (100% Japanese invested , Amata IZ, Bien Hoa) said: “Our company is specialized in manufacturing rice cooker, thermos, kitchen tools and can only find domestic supplier for 10% of the material and we have to import the other 90%. We are looking for other domestic enterprises who can provide more material to lower the cost of import”. Tiger is a nearly 100-year-old company in Japan, their products are exported to many countries. Therefore, being Tiger’s suppliers will help these enterprises become partners with many multinational corporations in this field. Hyosung, CJ, Fujitsu, Kenda and Syngenta… are some other multinational corporations in Dong Nai and they are also looking for domestic material resource to reduce import materials.
 
Catching the opportunity quickly
 
According to economic experts, the world is stepping into the industry 4.0 revolution. Thus, domestic enterprises should quickly catch up with the new and modern technologies to apply to their production to improve the products quality and quantity. Therefore, they can easily join the global supply chain and have stable output.
 
Mr. Pham Hoang Hai – Chairman of Board of Secretary of Enterprises with Vietnam Development Association (under Vietnam Chamber of Commerce and Industry) – stated: Enterprises who want to join the global supply chain shall apply modern technology to their production to make their products meet the international standard. Vietnam is having the advantage from the free trade agreements, foreign enterprise investing to Vietnam, they really need the domestic resources to receive export incentive. Enterprises who are late for this opportunity will find it extremely difficult to join the global supply chain”.
 
Representatives from other multinational enterprises and corporations in Dong Nai said that they were ready to instruct domestic enterprise with the conformable and equipment and procedures to supply the multinational enterprises with the qualified enough products. “As a company that provides electric cables to domestic machinery enterprises; in order to become larger corporations’ supplier, we must continuously invest in modern equipment to make higher quality products to meet customers’ demand. The company’s modern production line and quality products also attract bulk orders from foreign enterprises”. – Said Mr. Le Tri Minh – Director of Dai A Thanh Company (Bien Hoa)
 
Recently, Dong Nai domestic enterprises which joined the supply chain have already known how to catch up with the new technologies and apply them in the company production and take the environmental protection seriously. Enterprises which late adapt to the new trend of technology and science will easily be out of the global supply chain”.
 
Hương Giang

 

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