Solve challenges and add value to industrial production?
Currently, the industrial manufacturing industry in Vietnam is facing many challenges from general economic fluctuations to the global recession in 2022. According to the Ministry of Industry and Trade, in Q1/2023, export turnover will decrease by 11.9% over the same period, of which up to 4 industrial development centers in Vietnam: Bac Ninh, Quang Nam, Ba Ria-Vung Tau, Vinh Phuc will grow negatively in Q1/2023. [1] From the above points, it can be said that Vietnamese enterprises need to make great efforts to find development directions in the current time. So, how do businesses solve challenges and add value to industrial production? Join RX Tradex to answer through the following article.
1. What do Vietnamese enterprises need to do to solve challenges and improve value for industrial production?
1.1. Solving challenges for industrial production.
1.1.1. Focus on training and human resource management.
Currently, human resources are one of the biggest challenges of enterprises operating in the manufacturing sector. According to the survey results of the Center for Human Resource Demand Forecasting and Labor Market Information in Ho Chi Minh City, the industrial production industry is facing problems in terms of labor personnel from quantity and quality, mainly Vietnamese enterprises in the South. [2] It can be said that the personnel problem is a bottleneck for the whole industrial production industry, even at the time when Vietnam entered the “golden population” period.
Therefore, facing the current large demand for labor force, Vietnamese enterprises need to be proactive in training and managing human resources. In particular, enterprises need to strengthen support for workers to access new technologies, participate in certification courses to improve skills and improve productivity. In addition, the combination with educational, vocational training institutions and universities to train high-quality workers is also a solution businesses should aim for. Without accelerating the development of skilled and skilled human resources in the industrial production industry at the present time, it is likely that businesses will lose steam in the globally competitive economy.
1.1.2. Take advantage of state support policies.
According to the Ministry of Industry and Trade, in the context that the world continues to fluctuate complicatedly and trade competition is getting fiercer, the Government and the Prime Minister have drastically directed, urged and flexibly operated to harmonize immediate and long-term goals. Since then, promoting initiative and creativity, drastically implementing solutions for economic recovery, development, and ensuring social security. [3]
Thereby, in the current time, under the support of the Government, the industrial production industry will have many opportunities for growth and development, solving challenges in the current market. These supports will largely come from export and import policies, improving the trade balance with Vietnam’s surplus markets and ensuring anti-fraud in business activities. With the advantages advocated by the Government in the near future, enterprises in the manufacturing industry need to make good use of it to promote the competitiveness of products and move forward to the global market.
1.1.3. Rational use of investment capital and FDI.
In fact, Vietnam is having to import billions of dollars each year for machinery and equipment when domestic mechanical enterprises can completely produce their own. In addition, machinery products accounting for a large proportion of exports, up to 75% are of FDI enterprises. [4] This shows that the capacity of domestic enterprises is still poor, still not making good use of investment capital and limited in technology transfer from FDI units.
Therefore, in order for Vietnamese enterprises to solve the above challenge, Mr. Le Thuy Trung, Deputy Director of the Department of Industrial Economics and Services, said that there should be regulations binding FDI enterprises entering Vietnam to transfer technology, and at the same time commit to increase the localization rate. [5] In addition, Vietnam is currently considered the leading foreign investment attraction in the region, alongside India, China and Southeast Asia. However, the management of domestic enterprises has not achieved high efficiency, it is necessary to improve many aspects in the business model to use and allocate this investment capital most reasonably.
1.1.4. Actively seek new customers at home and abroad.
In 2023, the world economic situation is still difficult, the demand for industrial goods has not shown signs of strong recovery. In particular, many groups of industrial production such as textile, processing, wood ,… cut orders. This causes manufacturing enterprises to quickly look for new markets to ensure output for products.
In addition, domestic trade activities such as exhibitions, fairs ,… It is also a destination that brings opportunities to access potential customers for enterprises in the industrial industry. At the same time, in this difficult period, the supply chain of raw materials, fuels and logistics also needs to be paid attention to by businesses when trading with international partners. Manufacturers need to ensure that the supply is not broken, minimize inventory load in the process of enhancing trade promotion with potential new partners.
1.2.Value enhancement for industrial production.
1.2.1. Learn successful industrial production models in the world.
To improve company value, Vietnamese industrial enterprises need to learn from successful models in the world. In particular, typically the production lines of corporations such as Samsung, Toyota, Apple ,… From there, improve business operations and seek sustainable development directions in the future.
In addition, countries with advanced manufacturing industries such as Korea, Japan, USA,… are also models for Vietnamese businesses to learn and research. In fact, in our country, the Ministry of Industry and Trade and Samsung have organized many training courses, bringing Vietnamese employees and workers to Korea to improve their professional abilities and access the latest production technologies. In the period from 2020 – 2023, the mold expert training program in cooperation with Samsung has taken place with a variety of contents such as: mold design and manufacturing activities, training technicians on system management, design source management, direct practice, … [6]
1.2.2. Focus intensively on key manufacturing goods.
Vietnam is in the process of deepening global economic integration, which creates breakthrough opportunities for domestic enterprises, but also poses many competitive pressures, especially for industrial production. Currently, Vietnamese enterprises have been able to start to be self-sufficient in some industrial products such as automobile components, garments, consumer goods, processing,.. However, in areas that need intensive research investment, requiring high-tech production lines, domestic enterprises have not been able to meet international standards.
Therefore, the increased focus on in-depth research of key manufacturing products will be the strategic direction of the business in the near future. Instead of just assembling or processing, businesses should focus on improving product quality, fully meeting the requirements from the international market, thereby bringing greater profits.
1.2.3. Application of advanced technologies to industrial production activities.
By applying advanced equipment, machinery and technology to production activities, enterprises can improve product value, reduce operating costs and avoid labor dependence. Currently, many technologies such as 3D printing, artificial intelligence, automatic robots ,… has helped businesses improve and optimize business operations. Since then, the domestic industrial production industry can improve competitiveness and meet global market demand.
In fact, according to the Ministry of Industry and Trade, through research and investment in technological innovation, the fields of mining and mineral processing have achieved many achievements such as: The average amount of coal in the whole industry is 9.4% / year, the quality has been improved, reducing product costs. In particular, the rate of mechanization of underground mining has increased dramatically, from 10% to 80% over the years. [7]
2. Summing up.
Solving challenges and increasing value for industrial production is a process that requires long-term investment for Vietnamese enterprises. However, in the current economic context, improving product quality and increasing value for production activities is an inevitable trend for businesses to build competitive advantages. And this year, in order to help businesses find new directions in production activities, RX Tradex Vietnam will organize the Vietnam Manufacturing Expo with the participation of hundreds of leading brands in the world. In addition, in 2023, RX Tradex will also organize other exhibition events such as NEPCON Vietnam, METALEX Vietnam and Waste and Recycling Vietnam.
Note:
[1], [4], [5]: VietnamPlus
[2]: Bank Times
[3]: Ministry of Industry and Trade of Vietnam
[6]: Mouthpiece of the Ministry of Industry and Trade.
[7]: Accelerate the application of new and modern technologies in industrial development
