Connecting enterprises in supporting industries

Vietnam is increasingly attracting major global corporations to invest in production. This creates favorable conditions for domestic enterprises in the supporting industries to expand their supply of products and goods to foreign direct investment (FDI) partners.

Supporting industry products of a member enterprise of the Dong Nai Young Entrepreneurs Association.

Dong Nai, Ho Chi Minh City and Tay Ninh are industrial production hubs in the southern region as well as nationwide. Regional connectivity, followed by sectoral and enterprise linkages, is crucial to unlocking the full potential and advantages of the supporting industries.

Broader opportunities ahead

Dr. Huynh Thanh Dien, lecturer at Nguyen Tat Thanh University (Ho Chi Minh City), observed that Viet Nam is strongly developing its manufacturing industries and attracting an increasing number of foreign investors. This creates opportunities for domestic supporting industry enterprises to thrive. In reality, Viet Nam’s export value largely depends on FDI enterprises. When they come to produce in Viet Nam, they must import components and raw materials from abroad. If local enterprises can manufacture these, it will open broader opportunities for cooperation, allowing Vietnamese products and goods to enter the global supply chain.

Similarly, Phan Hong Viet, Head of the Industrial Management Division under the Ho Chi Minh City Department of Industry and Trade, noted that the recent administrative boundary adjustments have created a broader development space for enterprises, including those operating in the supporting industries. Ho Chi Minh City, together with Dong Nai and Tay Ninh, plays a pioneering role in forming a strong growth pole, leading the nation’s supporting industries to seize opportunities and anticipate global trends. According to Viet, this is the right time to establish highly competitive supply chains that meet the demand for spearhead industries while enhancing integration capacity and expanding export markets.

From the business perspective, Le Tuan Anh, Director of Cat Thai Manufacturing and Trading Co., Ltd (Ho Chi Minh City), shared that the company has received many orders from large FDI partners currently manufacturing in Viet Nam. Its core product lines include high-tech plastic components, plastic pallets, recycled plastic pellets, rubber components, plastic moulds, stamping moulds, metal components, stamping parts, and mechanical processing. Beyond supplying basic parts, the company also delivers complex multi-component assemblies with high added value.

At present, many foreign enterprises are relocating or expanding production in Vietnam, generating strong demand for domestic suppliers. This is the moment for Vietnamese enterprises to prove their capabilities and capture opportunities to become a sustainable link in international supply chains.

Linkages established to harness potential and advantages

As an “industrial stronghold”, Dong Nai has a substantial demand for supporting industry products, enabling local enterprises to provide their services. Nhat Tin An Packaging Co., Ltd. (located in Bien Hoa 2 Industrial Park) currently supplies a wide range of carton packaging to manufacturing enterprises within and outside the province, with most products serving the wood industry.

Nguyen Huyen Trang, Director of Nhat Tin An Packaging Co., Ltd., noted that the company is in the process of doubling its production capacity, hence seeking closer connections and cooperation with the local wood sector to supply supporting products. Working with multiple wood enterprises within and beyond the province to diversify products and expand market reach is also a solution to strengthen brand recognition.

Tuong Lai Co., Ltd. (Long Thanh District, Dong Nai Province) has established itself as a reliable partner for many domestic and international clients. It is also among the few exemplary members of the Dong Nai Young Entrepreneurs Association that frequently welcomes delegations for exchanges and experience sharing in production. The company specializes in supplying technical rubber products for motorcycle, automobile and electronics manufacturers. In recent years, it has invested hundreds of billions of VND to upgrade equipment and machinery, aiming to improve product quality.

Truong Quoc Cuong, Director of Tuong Lai Co., Ltd., stated that in order to connect with and supply products to major corporations and partners, enterprises must boldly innovate. As more major corporations establish production facilities in Vietnam, the demand for components is increasing, presenting opportunities for Vietnamese enterprises to invest, enhance their capabilities, and expand their market share.

Regarding regional linkages in the Southeastern region, Dr. Huynh Thanh Dien suggested that the Ho Chi Minh City core area should be positioned as a hub for high technology and research, while Dong Nai, Tay Ninh, and industrial centers in former Binh Duong focus on manufacturing. This would form an ecosystem spanning from research and development to production and export. Industrial distribution must be recalculated to ensure rational solutions that maximize the strengths of each area within the overall linkage framework.

Currently, the Ho Chi Minh City Supporting Industries Association (HASI), the Dong Nai Business Federation and the Dong Nai Young Entrepreneurs Association are promoting programs to foster connections and cooperation among units. Vo Son Dien, Chairman of HASI, emphasized that deeper cooperation along with overcoming fragmentation and reliance on imported components, will gradually form a complete supporting industry ecosystem.

By: Vuong The

Translated by: My Le - Thu Ha