From KOCHAM (Korean Chamber of Business in Vietnam)’s report recently published on August 16th, over 300 out of 1800 Vietnam enterprises in supporting industrial sector have engaged in Korean global supply chain of end-product manufacturing.
Accordingly, the main sectors that Vietnam businesses involved in global supply chain of South Korea are: fiber and textile, computer and phone batteries, electrical products and components, automotive parts,…
Mr. Choi Bundo, Chairman of KOCHAM, emphasized that fostering the growth of the domestic supporting industry holds utmost importance, benefiting not just Vietnamese enterprises but also Korean businesses that have invested in Vietnam.
Among the 1,800 supporting industry enterprises in Vietnam, the involvement of merely around 300 enterprises in the production network of multinational corporations is seen as notably low.
This situation has created challenges for FDI enterprises in locating suitable partners for the procurement of necessary raw materials and components. Consequently, they are compelled to depend on imports from foreign nations.
According to Mr. Choi Bundo, Vietnam needs to leap from providing only basic raw materials to a higher level. Relevant authorities need to establish specific, effective, and practical strategies to boost investment in the development of the supporting industry to achieve this goal.
Source: https://en.sggp.org.vn/over-300-vietnamese-businesses-joined-global-supply-chain-of-south-korea-post104313.html
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