Domestic enterprises struggle with foreign products

One of the difficulties that enterprises are facing is competition from foreign products. This enterprise produces internal parts for motorcycles and electric bikes. However, it struggles to find outlets.

"Customers still think imported products are better." - VUONG TUAN ANH, Shop owner, Duc Hoa Motorcycle, Thai Nguyen Province

"We want ministries to be more strict on smuggling, as well as monitor the origin and quality of products. That way we can stay in the game." - DINH VAN BAC, Vice Chairman, DETECH Motorcycle and Car Corporation.

Smuggled foods are not the only issues domestic enterprises must deal with. Distributors worry about limitations in production capacity, as they can’t always sign contracts with domestic producers.

"Imported products have stable prices and quality. Domestic products are not diverse, have higher prices, and unstable quality." - NGUYEN THI DUNG, Director, Tuan Hung Commerce and Service Company.

The Government set a target by 2020 for domestic production to meet 40% of local demand and the export rate to reach 25% of production value. The Ministry of Industry and Trade is also supporting 1,000 enterprises to join in global distribution chains.

"The Ministry will introduce measures to help enterprises with financing, science, and technology, and especially to connect with international enterprises." - PHAM TUAN ANH, Deputy Director, Heavy Industry Department, Ministry of Industry and Trade.

The Government is also drafting a law to support SMEs with these issues. The State Bank of Vietnam has reduced 50-100% of the basic interest rate and increased the maximum lending amount to 4.5 million USD for businesses in the supporting industries.