The most important task of manufacturing enterprises is to restructure production soon, find alternative sources of supply when raw materials are no longer available. In addition, supportive industrial enterprises need to promote linkage, support and use of each other's products in production and business activities to reduce the dependence on external resources.
Innovating production technology is a vital issue for businesses. In the photo: Producing automobile tires at Hung Hai Thinh Joint Stock Company, Phu Giao District
Innovating thinking and technology investment
The industrial production value of Binh Duong in the first quarter of 2020 continues to grow, achieving good growth. The index of industrial production is estimated to increase by 6.14% over the same period in 2019. This is the lowest increase in the last 4 years, but it is a great effort of the business community, including exporting enterprises. However, to have a sustainable direction, businesses need to take action now to create a driving force for development, especially when the disease is under control.
For the textile industry, new orders from June onwards have not been negotiated and the ability to recover orders until the end of 2020 will be very slow. The main reason is the decline in demand of the US and European markets. The redirection into the domestic market also encountered many obstacles because the majority of Vietnamese businesses outsource exports to foreign brands. On the other hand, domestic demand is also decreasing due to disease.
Similarly, the electronics industry is expected to be greatly affected in the next quarters of 2020 due to the decline in demand for electronic products in the US and European markets. For the furniture industry, clarity only occurs in a few large-scale companies. As for small businesses, if the situation does not improve, after the next 1-2 weeks, businesses will have to cut 70% of capacity. Without a solution, the risk of shrinking or stopping production is entirely possible. The question now is what manufacturing enterprises need to do to preserve the premise and create a basis for future development? According to experts, the disease is a "try" medicine for Vietnamese enterprises. And right now businesses need a long-term strategy to overcome the "storm" of disease. Accordingly, an issue that businesses need to do right away is strategic planning in the new phase.
Along with changing management thinking, the problem lies in the vision and development orientation of each enterprise, technology has been a vital element of businesses. According to Mr. Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, leather and footwear enterprises are under great pressure due to technological innovation. Currently, if not investing in Robot technology, within 1-2 years, enterprises will be left behind in the integration trend. Explaining this problem, Mr. Vu said that the "new race" in the international arena requires lowering product prices, ensuring the quality of goods that if too much manual labor is used, there is no place in the market competition trends increasingly fierce.
Agreeing with this view, Phan Le Diem Trang, Vice Chairman of the provincial Textile Association, said that if you want to conquer big markets like the United States and Europe, you must invest in machinery. With the US market, businesses want to compete on price and product quality, they must renovate technology, there is no other choice. If you do not do that, businesses will only forever process and gradually replaced by machines. Meanwhile, most textile enterprises are small ... technology investment requires capital.
With the wood industry, in fact, many Binh Duong wood enterprises have made great efforts in using the most modern technology in the world. That explains why Binh Duong accounts for 50% of the country's total wood export turnover and is expected to become the "capital" of regional timber industry. The lesson on the sensitivity and effort of the wood industry will be a concrete demonstration in promoting technological innovation, restructuring the production of key provincial industries in the technology trend as a driving factor.
Mr. Nguyen Thanh Toan, Director of Department of Industry and Trade, said that Department of Industry and Trade has many programs to support industrial enterprises being implemented. Specifically, the interest rate subsidy program for rural industrial facilities that causes environmental pollution has moved into industrial zones and clusters with 50% interest rate support for loans for factory investment, machines, equipment and technological lines in the first 2 years but not exceeding VND 500 million a facility. Support repair and upgrade the system of environmental pollution treatment at rural industrial establishments at 30% of the cost, but not exceeding VND 300 million a facility. Supporting the application of advanced machinery, technology transfer, scientific and technical advances in industry - small scale industry at 50% of the cost, but not exceeding VND 300 million a facility.
Opportunities for supporting industries
The above fact shows that, although it is in a difficult period, it also opens up opportunities, if taking advantage, domestic supporting industry enterprises can fully participate in the supply chain. Global. However, in order to do that, the supporting enterprises need to do well on the investment problem, improve the production process to be able to handle large orders.
Dr. Duong Nhu Hung, Head of Department of Industrial Management, Ho Chi Minh City University of Technology, said that if Binh Duong supporting industry meets production needs in the province and surrounding area, it will be a great motivation for industrial production of Binh Duong and the southern key economic region. Statistics of the Department of Industry and Trade show that currently in the field of supporting industry, there are about 750 enterprises in the total number of processing and manufacturing enterprises. In particular, many businesses meet the domestic and international needs. Talking to us, Mr. Tran Thanh Trong, Chairman of Binh Duong Mechatronics Association, said that Binh Duong Mechatronics businesses desperately need the opportunity to identify what big regional firms, factories and factories are. , in the country, in the province it is necessary to endeavor to improve the ability to provide production services. Over the years, businesses in the association have made great efforts to understand the industry, which products can be produced domestically, especially FDI partners, to form a right-of-home production chain. Regarding technology, Mr. Tran Thanh Trong fully believes that Binh Duong Mechanical and Electrical Enterprise can meet the needs of FDI enterprises. He also expressed his wish to the functional industry to create favorable conditions to lead businesses to implement this strategy.
Reported by Tieu My – Translated by Vi Bao
