Việt Nam urged to improve position in global value chain

October 21, 2022 - 09:25
The Multilateral Stakeholder Forum (MSF) 2022, themed "Improving Việt Nam's position in the global value chain: Multilateral cooperation in capacity building and traceability responsibility", was held in Hà Nội on Wednesday.


Choi Joo Ho, President of Samsung Vietnam, delivers a speech at the event. — Photo courtesy of Samsung Vietnam

HÀ NỘI — Việt Nam has selected six priority industries for support development, including textiles and garment, footwear, electronics, automobiles, mechanics and high technology. The country needs to promote bridges between domestic and FDI enterprises to improve its position in the global value chain.

The Multilateral Stakeholder Forum (MSF) 2022, themed "Improving Việt Nam's position in the global value chain: Multilateral cooperation in capacity building and traceability responsibility", was held in Hà Nội on Wednesday.

The Ministry of Industry and Trade jointly organised the event with the Việt Nam Chamber of Commerce and Industry, the Việt Nam General Confederation of Labour and Samsung Vietnam.

The position of Việt Nam and Vietnamese enterprises in the global value chain is an important topic. The MSF 2022 multilateral forum was an effort to bring the parties closer to the answer to the question: "What will Việt Nam need to do to realise the opportunity to elevate its position in the global value chain?"

Speaking at the event, Deputy Minister of Industry and Trade Đỗ Thắng Hải said that industrialisation and modernisation had been a goal of the Party and State since the 3rd Congress. 

Through 35 years of persistently implementing this goal, Việt Nam's industry has achieved certain achievements. As a result, the scale of Việt Nam's economy in 2021 reached about US$370 billion, making it the 4th largest economy in Southeast Asia; per capita income of more than $3,700; trade scale reached $670 billion, belonging to the group of 20 leading economies in terms of international trade.

"Việt Nam has signed 15 free trade agreements with more than 60 countries and territories, including the largest markets in the world, and increasingly diversifying markets, products and supply chains," he said.

In addition, the manufacturing industry is increasingly asserting its important role in the economy, with its contribution to GDP increasing from 13 per cent in 2010 to 16.7 per cent in 2020. The industry's structure has changed, gradually reducing the proportion of resource-intensive and low-tech industries and progressively increasing the proportion of medium- and high-tech industries. 

Industrial competitiveness has improved significantly too. The United Nations Industrial Development Organisation (UNIDO)'s Industrial Competitiveness Report moved Việt Nam from the group of "developing economies" to the group of "emerging industrial economies".

"Facing the challenges of climate change and the requirements of consumers around the world, especially in the developed countries, the trend of sustainable development, efficient use of resources, and responsibility for inspection are becoming an inevitable trend of the global industry in the coming period. In addition to the need to produce faster, lower costs, and better quality, today's production must also be more responsible for the environment and people," Hải said.

He said: "This poses many challenges for industrial products manufactured in Việt Nam, mainly of processing nature, added value, low in science and technology content, not yet accessible to the digital transformation towards smart production."

"Therefore, enterprises need to focus on transforming production models, improving productivity and quality in industrial production towards sustainable development of the circular economy; reducing energy consumption, reducing emissions, producing green, respond to climate change gradually towards meeting the standards of countries with advanced and developed industries in the world," Hải emphasised

Bùi Trung Nghĩa, deputy chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), said: "To accelerate the post-pandemic recovery in the direction of more balanced and sustainable development, Việt Nam needs to continue to accelerate economic reform through a long-term, closely coordinated strategy of many stakeholders."

"Furthermore, the overall and comprehensive assessment of dynamic capabilities helps businesses adapt to changes based on integrating and repositioning the organisation's resources; as well as the capacity for innovation and networking of enterprises, and it is an immediate and important task to solve the difficult problems that are posed to Việt Nam in the new stage of development."

Phan Văn Anh, vice chairman of the Việt Nam General Confederation of Labour, said: "The deeper participation in the world supply chain brings many opportunities but also poses many challenges for both businesses, workers and trade unions in Việt Nam, in which, ensuring workers' rights following the law, responsible business requirements, and sustainable development is one of the significant goals and needs special attention."

"Furthermore, ensuring the good implementation of workers' rights is one of the important missions for businesses to integrate deeply and sustainably into the global supply chain. As an organisation representing and protecting workers in Việt Nam, the Việt Nam Trade Union always strives and is ready to cooperate with all stakeholders, together to discuss and identify issues that need improvement, propose effective and appropriate solutions to ensure the best implementation of workers' rights in the global supply chain in Việt Nam, based on investigation of workers' rights."

Choi Joo Ho, president of Samsung Vietnam, said: "Việt Nam has several advantages, including its efforts in attracting foreign investment and the consistency of the Government's economic development policy, along with a dynamic economy, an expanding consume market. I think what is needed to double and further develop these advantages is to expand participation in the global supply chain by promoting the supporting industry in Việt Nam, and it is necessary to have medium and long-term efforts in the future."

"The MSF has become a significant and growing programme as a gathering place for parties with common interests, meeting to share knowledge and experience, and increasing learning opportunities. In the coming time, Samsung Vietnam will continuously strive to increase cooperation for the development and prosperity of the community."

The Multilateral Stakeholder Forum (MSF) is an initiative of Samsung Vietnam, which has been held annually in Việt Nam since 2018 to connect all stakeholders, including policymakers, NGOs, civil society organisations, experts, researchers and businesses. Through this annual event, ideas, solutions and initiatives are shared and discussed, inspiring action and positive energy and effectively contributing to solving essential problems in Vietnamese society. — VNS