Vietnam is coming to terms with a great opportunity from shifting production trends to deeply participate in the global value chain and supply chain.

According to the Ministry of Industry and Trade, the advancement of the manufacturing and processing industry helped Vietnam become the world's new factory. Forecasts of the International Monetary Fund (IMF) show that Vietnam will surpass the Philippines and Singapore to rank third in Southeast Asia in terms of economic scale with a GDP of more than 571 billion USD by 2025.

Capital flows into the manufacturing and processing industry increased.

Vietnam has truly become the world's rising manufacturing factory. Resolution 115/NQ-CP dated July 28, 2023, of the Government on solutions to promote the supporting industries' development with many new policies that are expected to create a strong stimulus for the processing industry, and manufacturing in the near future.

Giving a speech at the discussion "Sustainable supply chain: A new approach for businesses" taking place on November 16 within the framework of the Vietnam International Exhibition on Supporting Industries and Manufacturing Processing - VIMEXPO 2023, said Mr. Pham Thanh Tung - Department of Industry, Ministry of Industry and Trade said that foreign investors have tended to move into Vietnam recently.

" In 10 months of 2023, the total newly registered capital, adjustments and capital contributions, share purchases, and capital contributions of foreign investors reached more than 25 billion USD, an increase of 14.7% over the same period. More than 73% of capital flows flowed into the manufacturing and processing industry, an upsurge of 45% over the same period last year. New investment projects are concentrated in provinces and cities that focus on industry, aiming at global supply chains such as Quang Ninh, Hai Phong, etc... It can be said that Vietnam is currently a favorite destination for foreign investors. That will create conditions for Vietnam to participate in the global supply chain right at home. " - Mr. Pham Thanh Tung acknowledged.

Analyzing specifically, Mr. Pham Tuan Anh - Deputy Director of the Department of Industry, said that in the development process, in Japan, and Korea... there are always large businesses and economic groups leading the development of other businesses. The Ministry of Industry and Trade has proposed policies to support the formation of large manufacturing corporations in Vietnam.

However, this policy is not spread out but concentrated on fundamental, priority industries and sectors. This will be one of the important shifts in policy formulation to build an autonomous industry, helping Vietnam become the world's new factory, and an attractive investment destination for large global corporations to invest in Vietnam.

Businesses must be proactive.

Mr. Pham Tuan Anh acknowledged that with the consensus and determination of the Government, organizations, associations, and businesses, the competitiveness of Vietnamese businesses will be strongly developed. Vietnam will gradually enhance its ability to participate in the global value chain, helping not only the supporting industry but also the processing and manufacturing industry develop rapidly.

At the seminar, speakers shared and discussed the topic of sustainable supply chains. Representatives of Toyota Vietnam Company gave a speech about Toyota Vietnam's efforts in developing a sustainable supply chain. In addition to providing assessments and comments on the Vietnamese automobile industry market, Mr. Nguyen Trung Hieu, Deputy General Director of the Business Planning Department, Toyota Motor Vietnam Company also shared about the activities of Toyota Vietnam with efforts to develop supporting industries, contribute to environmental protection, along with efforts in policy dialogue with the Government, and propose ideas to develop a sustainable supply chain for supporting industries in Vietnam.

Commenting on current trends and requirements for suppliers, Ms. Do Quynh Chi, Responsible Business Alliance (RBA) stated that EU countries, the US, and soon Japan and Korea will follow the trend of reviewing human rights responsibilities. The leading enterprises are also currently conducting a comprehensive chain mapping, followed by determining the level of risk at levels and parts of the chain."

Regarding the trend of sustainable development and current requirements, he said that with a highly open economy and economic growth based on exports like today, Vietnamese industrial enterprises must be proactive. Actively improve management capacity, and technical qualifications and restructure production based on digital transformation, improving skills and human resource qualifications. Only then can we meet the strict requirements of multinational corporations in deeply participating in the global supply chain.

The representative of the Department of Industry also said that, in fact, the level of understanding and information grasp of a part of Vietnamese businesses, most of which are small and medium-sized enterprises, regarding responsible business is still limited. In particular, the concept of due diligence responsibility in the supply chain is still quite new in Vietnam.

Ms. Tran Thi Hong Lien - Deputy Director of the Office of Employers of the Vietnam Confederation of Commerce and Industry (VCCI) - said that gradually implementing the above things well will help businesses have the opportunity to attract investors, and interested customers, thereby increasing its position in a highly competitive context. This is also a big strength to help businesses develop more sustainably and long-term.