Cambodian Prime Minister Hun Sen on February 24 promised to give tax breaks to garment factories hit by supply chain disruptions from the coronavirus epidemic and higher tariffs after the EU withdrew trade preferences.
Vietnam's export to the Republic of Korea (RoK) in the period after the Vietnam-Korea Free Trade Agreement (VKFTA) came into effect (2016-2018) reached an average growth of 26.9 percent per year.
Malaysian Finance Minister Lim Guan Eng has said the permanent reorientation of the global supply chain due to the US-China trade war can be a golden opportunity to attract new investment and reverse Malaysia's premature deindustrialisation.
Sustainable supplies of goods and production were key areas for Vietnamese businesses to focus on in order to join the global supply chain, Director General of the Foreign Trade Association (Amfori) Christian Ewert said at a conference held in Ho Chi Minh City on October 21.
An assessment by the Vietnam Chamber of Commerce and Industry (VCCI) shows that currently, less than 40 percent of Vietnam’s firms can join the global supply chain.
The Vietnam Improvement Program has helped 82 garment-textile and footwear factories in Vietnam invest 37 million USD in efficient use of resources, thus saving 30 million USD per year, according to the International Finance Corporation (IFC).
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has recently taken effect in Vietnam, which will bring about both opportunities and challenges for many fields, including agriculture.
Vietnam should take advantage of the opportunities offered by the US-China trade war but also be aware of the negative consequences, experts said at a meeting in HCM City on December 13.
Only 15 percent of around 8,000 manufacturing companies in HCM City are capable of joining global supply chains but authorities are trying to increase the number.
In March, the Department of Industry and Trade of Ho Chi Minh City will chair a meeting with the Ho Chi Minh City Export Processing and Industrial Zones Authority and the Saigon Hi-tech Park to organise a festival to seek support industry suppliers.
As 2018 brings newer and bigger FTAs, Vietnamese enterprises are faced with tough choices. They can either adapt and move up the global supply chain, or stand by while imported goods flood the country’s market.
Some 72 percent of Vietnamese women have joined the labour force, higher than the average world percentage (42 percent), and ranking only behind Cambodia (81 percent).
General Director of Samsung Vietnam Shim Won-hwan pledged to continue supporting Vietnamese firms to take part in the Korean group’s global supply chain while meeting Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong on November 30.
Vietnam has been interested in joining the global supply chain and management governance, which is considered an effective competitive tool for businesses to control the market, build up confidence among customers and increase profits and connectivity with global partners, said a trade official.
A team of experts from Samsung will support three Vietnamese firms in improving their competitiveness and capability to join the supply chains of Samsung and the globe.
HCM City is ready to work with Samsung in boosting local enterprises, helping them qualify for the group’s global supply chain, said Secretary of the municipal Party Committee Nguyen Thien Nhan.
Companies that want to enter the global supply chain should show initiative and make concerted steps to enhance their capacity and growth, Dr Shantanaru Bhattacharya of Singapore Management University said at a forum held in HCM City on March 10.
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