Support industry firms face several challenges: Japanese expert

Vietnamese enterprises operating in the support industry, which account for 4.5 percent of the total number of enterprises operating in processing and manufacturing, are facing several challenges, according to Akutsu Michio, consultant of the Japan Association of International Business Consultants.

Businesses specializing in support industry employ 8 percent of the industrial sector's workforce and contribute 900 trillion VND (39.5 billion USD) or 11 percent of the industrial sector’s total revenue.

However, their productivity remain low, Michio said, suggesting the Vietnamese Government design policies and programmes to help the enterprises improve technical and production capacity.

He underlined the necessity for Vietnam to take measures to promote education, and financial policies to attract high skill human resources and help businesses access capital to invest in equipment.

The expert also emphasized that it is important for supporting enterprises to maintain supply chains, ensuring continuous supply of components for manufacturers.

Suppliers must pay attention to building detailed plans in order to meet requirements of multinational corporations, Michio noted.

Vietnamese enterprises have many opportunities to provide products to assembling and manufacturing enterprises abroad, thus further expanding the country’s supporting industry in the future, he added.

Source: Vietnam News Agency

Support industry firms face several challenges: Japanese expert

Vietnamese enterprises operating in the support industry, which account for 4.5 percent of the total number of enterprises operating in processing and manufacturing, are facing several challenges, according to Akutsu Michio, consultant of the Japan Association of International Business Consultants.

Businesses specializing in support industry employ 8 percent of the industrial sector's workforce and contribute 900 trillion VND (39.5 billion USD) or 11 percent of the industrial sector’s total revenue.

However, their productivity remain low, Michio said, suggesting the Vietnamese Government design policies and programmes to help the enterprises improve technical and production capacity.

He underlined the necessity for Vietnam to take measures to promote education, and financial policies to attract high skill human resources and help businesses access capital to invest in equipment.

The expert also emphasized that it is important for supporting enterprises to maintain supply chains, ensuring continuous supply of components for manufacturers.

Suppliers must pay attention to building detailed plans in order to meet requirements of multinational corporations, Michio noted.

Vietnamese enterprises have many opportunities to provide products to assembling and manufacturing enterprises abroad, thus further expanding the country’s supporting industry in the future, he added.

Source: Vietnam News Agency