(VEN) - With average growth of 10 percent per year, domestic trade is one of the main driving forces of Vietnam’s economic development. However, trade is still hampered by various unstable factors. Identifying challenges According to speakers at a recent seminar on the role of management agencies and businesses in the development of trade and services held by the Domestic Market Department under the Ministry of Industry and Trade, large population and high purchasing power make Vietnam one of the most attractive markets in the world. During the 2011-2017 period, total retail sales of consumer goods and services posted an annual 10 percent growth. This figure reached more than VND3,234 trillion in 2017 and nearly VND1,400 trillion in the first four months of this year. Nguyen Van Hoi, deputy director of the Domestic Market Department, said although domestic trade has recorded high growth and greatly contributed to the development of the national economy, it still faces many … [Read more...] about Developing supply chains vital for domestic trade
Supply chain
Poverty and inequality major ingredients in supermarket supply chains
The report, ‘Ripe for Change’, also assesses the policies and practices of some of the biggest supermarkets in Europe and the United States – all of which score poorly on issues such as the treatment of workers and producers in their supply chains.Source: vietnam.oxfam.orgAmong the findings:• Supermarkets keep an increasing amount of the money their consumers spend - as much as 50 percent in some cases - while the share that reaches workers and food producers has fallen - sometimes to less than 5 percent.• Small-scale farmers and workers in the supply chains of 12 common supermarket products are scraping a living. For some products, such as Indian tea and Kenyan green beans, the average earnings of small-scale farmers or workers was found to be less than half of what was needed to ensure a basic but decent standard of living. The gap between a living income and actual income is greater where women make up most of the workforce.• While many workers … [Read more...] about Poverty and inequality major ingredients in supermarket supply chains
Minister stresses support for businesses to join supply chains
Minister of Industry and Trade Tran Tuan Anh speaks at the working session (Source: VNA) The minister gave a presentation at the fifth meeting of the 14th National Assembly on May 26th on a number of issues related to export and export markets, the “rescue” of farm produce oversupply, the support industry and ineffective investment projects. Anh said export has been on the right track in recent years with a shift to processed and manufactured products. The country has also established trade ties with more than 200 countries and markets, and joined many free trade pacts. However, he admitted that export growth is unsustainable due to unstable and inconsistent product quality. “This remains a big obstacle to Vietnam in building its brand name, developing value chains and meeting requirements of free trade agreements as well as international commercial practices in terms of product origin and quality,” he said. Besides, Vietnam still depends too much on major … [Read more...] about Minister stresses support for businesses to join supply chains
Signing ceremony for food-safety supply chain between HCM City, Sóc Trăng
The quality of Sóc Trăng Province’s agricultural and aquatic products in HCM City will be better managed via a food-safety supply chain. Photo: sggp.org.vn. Viet Nam News HCM CITY— HCM City’s Department of Food Safety Management and Sóc Trăng Province’s Department of Agriculture and Rural Development held a signing ceremony recently to sell the latter’s agricultural and aquatic products to those involved in a food-safety supply chain to ensure food safety. The quality of products would be ensured from the first stage (cultivation, husbandry, gathering and exploiting) to the final stage (slaughtering, processing and trading). By the end of 2019, they expect all agricultural and aquatic products from Sóc Trăng Province sold in HCM City to be controlled via such food-safety chains. Phạm Khánh Phong Lan, head of the city’s Food Safety Management, said the department had encouraged enterprises to join the … [Read more...] about Signing ceremony for food-safety supply chain between HCM City, Sóc Trăng
More Vietnam businesses join global supply chains
At least 29 Vietnamese businesses have joined global supply chains, according to the HCM City Centre of Supporting Industry Development. Local businesses’ improved production quality has helped them gain contracts to become suppliers to major companies. - Photo www.sggp.org.vn Bac Viet Technology Joint-Stock Company, for example, has become a supplier of plastic electronic components and precision samples for Samsung Electronic Viet Nam and Samsung Electronics Viet Nam Thai Nguyen. The company has reduced its inventory ratio from 37 per cent to 24 per cent and has successfully built a system for recognising and repairing mistakes on the goods that it manufactures. After making improvements, the percentage of errors fell by 63 per cent. Shim Won Hwan, director of Samsung Electronic Viet Nam, said that Samsung expected to have 50 suppliers from Viet Nam by 2020. Samsung has been working with the Ministry of Industry and Trade on a business innovation programme that trains … [Read more...] about More Vietnam businesses join global supply chains
More VN businesses join global supply chains
Local businesses’ improved production quality has helped them gain contracts to become suppliers to major companies. — Photo www.sggp.org.vn At least 29 Vietnamese businesses have joined global supply chains, according to the HCM City Centre of Supporting Industry Development. Bac Viet Technology Joint-Stock Company, for example, has become a supplier of plastic electronic components and precision samples for Samsung Electronic Viet Nam and Samsung Electronics Viet Nam Thai Nguyen. The company has reduced its inventory ratio from 37 per cent to 24 per cent and has successfully built a system for recognising and repairing mistakes on the goods that it manufactures. After making improvements, the percentage of errors fell by 63 per cent. Shim Won Hwan, director of Samsung Electronic Viet Nam, said that Samsung expected to have 50 suppliers from Viet Nam by 2020. Samsung has been working with the Ministry of Industry and Trade on a business innovation programme that trains … [Read more...] about More VN businesses join global supply chains
ADB expands the scope of its supply chain finance program
ADB piloted SCFP by partnering with global banks to share risk in around 550 transactions involving SMEs valued at more than USD500 million. The expansion allows ADB to take bolder initiatives, such as working with local banks and increasing the use of technology to close financing gaps for SMEs. The expansion will also support ADB’s plans to diversify the reach and impact of its supply chain finance business to more challenging markets, which have the largest trade financing gaps relative to size.The additional financing for SCFP will help more small and medium-sized enterprises in Asia and the Pacific address financing gaps and boost their contribution to the region’s economic growth and development. (Source: ADB)“We’re really excited about this opportunity to move our supply chain finance business to a different, more innovative place,” said Steven Beck, Head of Trade and Supply Chain Finance. “When the SCFP started in 2012, supply chain was a … [Read more...] about ADB expands the scope of its supply chain finance program
Supply chain the key to sustainable farming production in Việt Nam
Viet Nam News by Mai Hiên & Nguyễn Hằng Not any single day past when you won’t find Nguyễn Thị Sinh’s tender to her crops on her farm. Delicately tending to her plants and harvesting the ripe ones for market is just part of her daily routine at the 360-square-metre’s of land. But the work doesn’t stop there. Far from it. Each day she embarks on a 27 kilometre journey from her hometown in the Ứng Hòa District to Hà Đông. With her, of course, is two large baskets bursting with vegetables. A tough way to earn a living, and one that’s hardly financially rewarding. “Although I’ve engaged in planting vegetables for more than 30 years, I have never satisfied with income brought about by it,” said Sinh, 52, who earns around VNĐ80,000 (US$3.5) each day. But she won’t be put off by the poor rewards. She added: “I don’t want to quit farming and … [Read more...] about Supply chain the key to sustainable farming production in Việt Nam
Electronic firms advised to boost linkages in supply chain
An overview of seminar themed "Enhancing linkage opportunities in the electronic supply chain” (Source: VNA) HCM City (VNA) – Vietnam’s electronics enterprises should enhance linkages and increase productivity if they want to grow sustainably and integrate more deeply into the global supply chain, experts said at a seminar in Ho Chi Minh City on March 13. Electronics is one of the key industries which are enjoying impressive growth in recent years and has become a spearhead export sector of Vietnam. In the last decade, the number of electronic enterprises has risen four-fold to 1,021, and the number of workers increased to more than 500,000, Nguyen Phuong Dong, Deputy Director of the municipal Department of Industry and Trade, said at the seminar themed “Enhancing linkage opportunities in the electronic supply chain”. However, the sector is still in the first phase of the electronic production chain, as domestic firms have focused only on … [Read more...] about Electronic firms advised to boost linkages in supply chain
Weakness in Vietnam’s agricultural supply chains
The latest report from the World Bank on Vietnam’s agriculture supply chains shows the country is behind its neighbors in terms of supply chain operations and trade, with it receiving a score of 55.7 out of 100 for supply chain operations, 60.6 for product quality control, and 48.4 score for farm produce trade. Compared with the Philippines, Vietnam excels in product quality control but is inferior in supply chain operations and trade. Vietnam’s scores in trade are even lower than Cambodia and Laos. Major constraintsAlthough Vietnam is a leading exporter of agricultural products to the world, the World Bank indexes reveal a weakness in Vietnam’s agricultural supply chains in global trade. The main constraint on Vietnam’s agriculture supply chains is the lack of an integrated, end-to-end supply chain model, according to Mr. Julien Brun, Managing Partner at CEL Consulting Vietnam, which provides advisory, engineering and training services in the field … [Read more...] about Weakness in Vietnam’s agricultural supply chains