In the new period, enterprises, trade associations need help to strengthen the connection, development corresponding to potential of the Southern key economic zone.
The development of regional infrastructure, reduction of logistics costs is a priority to develop in the coming time.
To enhance association mechanisms
At a recent meeting with provinces and cities of the Southern key economic zone, Prime Minister Nguyen Xuan Phuc assessed, over 10 years, this region gained a growth of 1.5 times higher than the average growth of the whole country. However, growth rate seems to stand still. Therefore, in the year 2020, the mission of this region is to strive for a higher growth rate than the general average, to be the motivation for Vietnam to reach high economic growth rate. In particular, it is necessary to stimulate the development of private economy, disassemble difficulties, accelerate administrative reform, create an open investment environment.
Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI) also confirmed, the area gathered outstanding advantages and had many favorable conditions for industrial, service development, leading in the industrialization and modernization. However, the Southern key economic zone lacks the mechanism of association... Therefore, regional council as well as regional enterprises council need to be set up. Enterprises, trade associations are the hub to connect regional businesses. "Accordingly, it is enterprises, trade associations, who propose and are the hub to connect regional businesses, determine how to develop technology and logistics... Enterprises have to propose," said Mr. Loc.
In recent years, the strong growth of export timber industry has not only increased foreign currency earnings for the country but also created good conditions for wood development and afforestation, creating many jobs for laborers in Binh Duong, Dong Nai, and Ho Chi Minh City. Furniture Association in these three localities promptly took into consideration the cooperation to develop and promote the advantages of each locality, boosting economic growth in key areas.
From the actual production and export of timber, Chairman of Binh Duong Furniture Association (BIFA) Dien Quang Hiep said that, due to the fierce competition and pressure of origin, the role of wood processing associations needs to be more heightened. Dong Nai and Binh Duong are localities with the highest concentration of wood manufacturing and processing enterprises in the country (accounting for more than 50% of production and more than 70% of export value of the whole country). Meanwhile, although Ho Chi Minh City does not have a large number of wooden producing and processing enterprises like in Binh Duong and Dong Nai, this locality has strengths in trade, international relations and wholesale of machinery for timber industry. Associations are calculating the plan to soon form an alliance of southeastern wood processing associations.
The associations proposed a linkage for the development of southeastern timber enterprises, stimulating the development of wood production, export of wood and handicrafts, developing supporting industries for timber industry as well as other service industries... In terms of direction, wood processing associations recommended enhancing vertical and horizontal integration. In particular, the "vertical" integration is to strengthen links from the afforestation stage to processing and logging, perfecting products, seeking consumption markets. The "horizontal" integration is that domestic wood processing associations need to step up their activities and link together, clearly demonstrate their role to member enterprises, including functional agencies, proposing key policies that could facilitate the development of timber industry.
Regarding leather and footwear industry, Nguyen Duc Thuan, Chairman of Vietnam Leather and Footwear Association (Lefaso), said that in the current context, if footwear enterprises wanted to survive and develop, they must change. Accordingly, in addition to the State's incentives and open policies, the leather and footwear industry must rely on several elements. These are to develop supporting industries, domestic raw materials, increase labor productivity and governance on digital platform... Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, said that businesses had been very active in connecting. However, it is time for associations and industries to sit down to have a stronger connection strategy.
To promote strengths
In order to develop the Southern key economic region and welcome investment opportunities in the new normal period, many provinces recommended the Prime Minister to solve obstacles in the development of seaport and inter-provincial transportation infrastructure. Attention must be paid to synchronous interconnection in order to facilitate regional and inter-regional trade.
Tran Thanh Liem, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee, assessed that economic connectivity and regional connectivity are ultimately the connection between enterprises. Authorities at all levels will create connection space, create infrastructure for connectivity and set up mechanisms, but specific actions are from enterprises. Mr. Liem also proposed that the Government should soon allocate capital to Belt Road 3, Belt Road 4, Ho Chi Minh - Thu Dau Mot Expressway as well as approve the extension of the 1.8km metro line No. 1 in Ho Chi Minh City funded by Japanese ODA loans.
In Binh Duong, the building of smart city is always tied to the interests of provincial businesses. In particular, the province attaches great importance to the development of multi-modal transport, logistics services and auxiliary projects for freight transport; connecting road, rail and waterway transportation business together to create maximum convenience for enterprises, minimize transportation and production costs. Binh Duong saves 300 hectares of land to build a standardized logistics center to connect industrial parks inside and outside the province, providing smooth, fast, safe, competitive logistics services to meet development needs of Southern key economic region and surrounding areas.
Nguyen Thanh Son, General Director of Tan Cang - Song Than ICD Joint Stock Company, Vice Chairman of Binh Duong Logistics Association, assessed that Binh Duong Logistics Association would be the foundation and the motivation for comprehensive development of logistics system, including hardware, software and human infrastructure. Accordingly, each enterprise with different functions would maximize its functions but still ensure connectivity (data connection, making use of common resources and common space fund...). As a result, competition in connectivity will increase the overall performance of member businesses of the association.
Reported by Tieu My - Translated by Ngoc Huynh
