Hai Phong, a dynamic port city with a long-standing industrial tradition, is increasingly asserting its position as a major industrial center of the country. With its strategic geographical location, synchronous infrastructure and the government's focus on development, Hai Phong is always in the top of the country in attracting foreign direct investment (FDI). However, the problem of connecting domestic enterprises with FDI corporations still faces many challenges, requiring close coordination between the government, industry associations and the enterprises themselves.
Current status of Hai Phong industrial enterprises
Industrial enterprises in Hai Phong operate in many fields from mechanics, electronics to electric wire and cable production. However, the majority of local enterprises are small and medium enterprises (SMEs), still facing many limitations in financial capacity, technical level, human resources and the ability to meet international standards.
A typical example is the electric wire and cable industry, with an annual output of 100 tons and a domestic market share of more than 80%. Despite the huge demand from FDI enterprises, domestic enterprises still face difficulties in penetrating the supply chains of these corporations. The main reason is fierce competition in terms of price, quality and international standards, especially after free trade agreements such as CPTPP and EVFTA come into effect.
Big challenges in the integration period
In 2024, the global economy shows signs of recovery, but is still affected by adverse factors such as geopolitical instability, rising input costs and a decline in orders from international markets. For small and medium-sized enterprises, these difficulties are even more severe:
- Production site problem: The cost of renting land and building factories is too high, making it impossible for many businesses to expand production.
- Difficulty accessing capital and support policies: Tax incentive and loan support programs exist but have not reached the right target.
- Lack of high quality human resources: Specialized training for engineers and workers is still limited, especially when dealing with advanced technologies from FDI corporations.
Efforts to overcome difficulties and grow positively
However, Hai Phong businesses have demonstrated their ability to adapt and grow. The city's industrial production index (IIP) in October 2024 increased by nearly 20% compared to the same period in 2023, and the 10-month growth rate reached 14.5%. This achievement is not only thanks to the efforts of businesses but also thanks to support policies such as:
- Tax reduction and tax payment extension.
- Support preferential loans.
- Strengthen connectivity and information sharing through industry associations.
The Hai Phong Industrial Development Support Association plays an important role as a bridge, creating a network of connections between businesses inside and outside the city. This cooperation not only helps businesses share experiences but also increases opportunities to reach international customers.
Solutions to seize opportunities from FDI
Faced with the wave of global production and investment shifts, Hai Phong industrial enterprises need a clear strategy to improve their competitiveness:
- Investing in people and technology:
- Strengthen training of high-quality human resources, especially engineers and skilled workers.
- Application of modern technology and automation in production.
- Building corporate culture and industrial style:
- Setting modern management standards, from production to service.
- Enhance employee responsibility and discipline.
- Participate in B2B e-commerce platforms:
- The Association is launching a B2B e-commerce platform with a virtual booth, helping businesses introduce products and services visually.
- Integrating AI and 3D technology to support domestic and foreign customers to search, research and order more effectively.
- Closely linked with industry associations:
- Take advantage of the association's seminars, networking and training programs.
- Ensure product quality and reputation when participating in trade promotion programs.
- Accompanying the government:
- Proposing the construction of specialized industrial zones at reasonable costs.
- Call for more support in policy mechanisms to reduce the burden on small and medium enterprises.
Vision to 2030
Hai Phong is expected to have 46 new industrial parks, along with the increase of multinational corporations investing in high technology, artificial intelligence and electronics. This opens up great opportunities for local supporting industry enterprises.
With thorough preparation, making the most of resources and support from associations and the government, Hai Phong businesses can completely become part of the global supply chain. This is not only an opportunity for sustainable development but also an important task to affirm the position of the port city on the industrial map of Vietnam and the world.
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