A golden opportunity for Vietnam's supporting industry to break through
Sharing on the sidelines of the recently organized Conference on Strengthening the Localization and Developing the Supplier System by VinFast, economic expert Pham Chi Lan affirmed that Vietnam currently needs to develop the domestic industry more than ever.
She pointed out that more than 50% of Vietnam's manufacturing and processing industry currently belongs to foreign investors. In the context of global trade change and the risk of high taxes from major markets, Vietnam cannot continue to rely solely on the capacity of foreign investors. Vietnam has no other choice but to surpass it with its own internal resources, with its domestic industries, to prove that we are producing our own products, not foreign ones, including accessories or accessories, said the expert.
Therefore, Ms. Pham Chi Lan especially emphasized the significance when at the event, VinFast announced many support policies for suppliers such as: Commitment to cover output products; 50% discount on land rental fees in the first 3 years, 20% in the next 5 years for partners building factories at two VinFast automobile manufacturing complexes in Hai Phong and Ha Tinh; connecting Vietnamese enterprises with foreign partners... In addition, there are also promising goals of VinFast in the coming time such as increasing the localization rate to 80% in 2026 and an output of 1 million vehicles/year in 2030.
Former VCCI Vice President analyzed that previously, when foreign automakers such as Toyota, Mitsubishi, Ford... came to Vietnam, these enterprises often used their own subsidiaries in other countries such as Thailand, making it difficult for Vietnam's automobile supporting industry to develop.
VinFast appears and is the leader of the supporting industry, with a large scale and a commitment to cover all output products, said economist Pham Chi Lan. She also believes that when the supporting businesses work for VinFast with high standards and commit to international competition, this team will improve its global competitiveness and mature.
Economic expert Pham Chi Lan commented that VinFast's commitment is reliable. VinFasts commitment is completely believable, simply because if VinFast wants to survive, wants to develop in the Vietnamese market as well as international markets and reach out, it must achieve those commitments, Ms. Pham Chi Lan affirmed.
Unlike Thailand, Vietnam is creating a Detroit using its own internal resources
Also sharing his confidence in VinFast's plans, Associate Professor, Dr. Tran Dinh Thien, member of the Prime Minister's Policy Advisory Council, Former Director of the Vietnam Economic Institute, affirmed that VinFast's support for Vietnamese supporting businesses is not new today but has been implemented for many years. The evidence is that VinFast's factory complex in Hai Phong has been allocating land with preferential conditions for a number of supporting businesses.
With the recently announced policies, especially product coverage, the expert said that VinFast is creating a fulcrum, so that businesses can confidently upgrade their technology and human resources to participate in the supply chain sustainably. This will create a truly sustainable link between VinFast and supporting businesses. Thanks to that, VinFast has become a truly strong brand, and businesses supporting Vietnam will connect into a sustainable chain and be competitive with the world, he believes.
The expert also saw great benefits for the country from the above linkage. In addition to forming a modern production ecosystem, Vietnam will benefit greatly when national competitiveness is enhanced, along with jobs for tens of thousands of workers. Moreover, according to him, it is also the confidence and national pride when we can reach out to the world with our own strength.
From there, according to him, to effectively support, the State needs to change the approach to support the business community, in the direction of not spreading, but focusing on connecting points that can spread.
Instead of supporting each small-scale supporting enterprise in a even, average way, which is very Fake, we should go through central enterprises like VinFast which are playing a role in shaping value chains and have a long-term strategic vision, he said.
If it does well, according to him, Vietnam will have a golden opportunity to become a Detroit of Southeast Asia, as Thailand has done with a very strong development supporting industry.
Opportunities are there, and we are even facing a golden opportunity. But unlike Thailand - where industry supports development thanks to the assignment of foreign companies - Vietnam is creating its own chain, based on internal resources", said Associate Professor, Dr. Tran Dinh Thien.
