NEWS & EVENTS

The strength of Vietnamese SMEs is human resources

25/07/2020
On July 24 in Hanoi, Mr. Daniel Pham - Operational Director of Vietnam Outsourcing Ptd Ltd joined the Vietnam Business Support Forum on developing sustainable value chains
The event, organized by the US Department of Planning and Investment and the United States Agency for International Development (USAID), was attended by the Minister of Planning and Investment as well as representatives from USAID and Vietnam Association for Supporting Industries.

Speaking at the conference, Mr. Pham Minh Duc emphasized:
“Vietnamese manufacturing industry is not in a bad state but we still need to find suitable products if we want to compete with more matured markets such as China. On the other hand, big corporation in Vietnam ie Samsung, Cannon or Panasonic has a very strict barrier for the new suppliers (more than 4,000 criteria as mentioned by Samsung's representative during this event). Some Vietnam SMEs can meet up to 50% of such criterias, which is not bad in my opinion. However, not all international customers must be giant corporations. As any other countries, the US and EU also have over 98% of their enterprises are SMEs. And this potion of the market has not received the same attention as the other FDI sector.”

MVI 0691 Moment (1)

Mr. Daniel Pham also said “the SMEs in Vietnam are dealing with their peers from the US/EU by themselves which causes them to have a lower conversion rate that it should be. Vietnam manufacturing setting is very similar to China ~15 years ago with cross-culture communication, different working mindset, and habit..etc. However, the supply chain in China didn’t grow overnight, and neither will it be in Vietnam. This is a long and hard journey and VNO will be happy to be part of it.”

In addition, when talking about the characteristics of Vietnamese businesses, Mr. Daniel Pham said:
“Engineering products are not just about looking the same, but achieving the quality standards that customers require is a very difficult task. Getting the right quality and at the same time, the right quantity & right delivery is even more difficult. And finally, doing all that with a price that the customers are all used to get from China is extremely challenging. However, it’s not impossible.

Ending his presentation, the Operational Director of Vietnam Outsourcing Pte Ltd said: "Vietnamese manufacturer has certain advantages when it comes to our labor. But in my opinion, this is also the area that needs the first attention when we talk about improvement. Because our manpower are those who will implement all of the technology and process that will make Vietnam manufacturers more competitive"

The sharing of Mr. Daniel Pham - CEO of VNO has received high approval and respect from experts and business owners in the domestic and foreign mechanical industry at the Conference. This also reflects the commitment of Vietnam Outsourcing to the Vietnamese industry and the dedication to the development of Vietnamese suppliers with the desire to participate in the world supply chain.




 

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