SME access to global supply chain spotlighted

In 2000, Vietnam’s textile and garment exports were valued at below 2 billion US dollars. 14 years later, this figure jumped to 24.7 billion dollars. But despite being a leading export sector, the textile and garment industry is having trouble extending its presence in the global supply chain.

Dang Phuong Dzung, Deputy Chairperson, Vietnam Textile and Apparel Association said: Vietnamese firms haven’t been really proactive in joining the global supply chain. They are only choosing easy ways to enter the global market. That’s why labour intensive sewing factories are developing more than, say, material manufacturing or fashion design.

Reports at the Thursday workshop, which saw the attendance of over 130 companies, showed that only 21% of Vietnamese SMEs are engaged in global supply chains, compared to 30% of Thai firms and 46% of Malaysian SMEs and most Vietnamese companies are participating in the lowest levels of the supply chain. That’s why raising an understanding of international law and learning from other countries remained vital, experts said.

"We’re encouraging businesses to actually familiarise themselves with the law of countries that might be members of the TPP as preparation for its potential signing. There are obviously a large number of SMEs so we’ll be using web-based methods to convey the information. Moreover, companies in a sector should be linked together and receive in-depth training in that particular sector.", said  Dang Huy Dong, Deputy Minister of Planning and Investment.

To integrate better, experts also advised Vietnamese SMEs to improve their value chains, raise output and bolster productivity by optimising current operations, while making use of modern payment tools.