The Hanoitimes – Only 21% of Vietnamese enterprises join foreign supply chains, much lower than the rate of 30% of Thailand or 46% of Malaysia, not to mention the poor localization rate of 33%. Vietnamese enterprises require higher capabilities to move up global value chain Escaping middle income trap – a major challenge to Vietnam: Minister Vietnam predicted to maintain status as ASEAN’s bright spot in trade in 2019 Vietnamese enterprises only get a tiny share of the global value chain, which requires urgent measures to step up and integrate further in the process, according to Prime Minister Nguyen Xuan Phuc. Prime Minister Nguyen Xuan Phuc at the forum. Source: VGP. Phuc shared his view at the annual Vietnam Reform and Development Forum (VRDF) 2019 held on September 19. After 30 years of reform, Vietnam has maintained high economic growth rate, and joined a number of countries overcoming extreme poverty. “The middle class now makes up 15% of the population and is growing fast in number,” Phuc said. According to Phuc, such achievement was thanks to the presence of foreign invested companies, as well as Vietnam’s participation in free trade agreements (FTAs), in turn shifting global supply chains from multinationals to Vietnam, including that of Samsung, LG, Fujitsu, Aeon, Nestle, Nike, Intel, among others. “However, only 21% of Vietnamese enterprises join foreign supply chains, much lower than the rate of 30% of Thailand or 46% of Malaysia, not to mention the poor localization rate of 33%,” Phuc stated. Addressing… [Read full story]
Leave a Reply