This is a good time for both local and foreign enterprises to restructure their value chains, discover solutions to become more resilient, actively seize new opportunities, and enhance production capabilities.
Today, the Ministry of Planning and Investment (MPI) and the United States Agency for International Development (USAID) organised a conference on supporting Vietnamese enterprises to develop sustainable value chains in Hanoi, co-chaired by Minister of Planning and Investment Nguyen Chi Dung and USAID Vietnam mission director Michael Greene.
The conference was attended by more than 200 representatives from ministries, agencies, provincial people’s committees, Departments of Planning and Investment, Agricultural and Rural Development, and Industry and Trade from 30 provinces and cities in North and Central Vietnam, as well as representatives from business support organisations, business associations, industry associations, lead firms, and small- and medium-sized enterprises (SMEs).
The COVID-19 pandemic has negatively affected many countries in the world, including Vietnam. Vietnam’s business community has been hit hard by COVID-19. Supply chains have been disrupted and many businesses, especially SMEs and businesses dependent on exports, are suffering from revenue loss, suspension of operations, and staff cutbacks.
They are struggling to regain their former momentum and continue their operations. According to the General Statistics Office, Vietnam’s gross domestic product growth rate in the first half of 2020 was only 1.81 per cent. This is the lowest growth rate that Vietnam has experienced in the last ten years.
The government of Vietnam and the prime minister have issued policies to support post-COVID-19 business recovery: prime minister’s Directive No.11 issued on March 4, 2020 on urgent objectives and solutions to assist businesses facing difficulties and assurances of social welfare amid COVID-19; and the government of Vietnam’s Resolutions No.84 issued on May 29, 2020 to further reduce the pandemic’s impact on businesses, promote effectiveness of public investment, and ensure social security in the COVID-19 context.
These timely efforts have been recognised by the business community and international organisations, and continue to encourage businesses to overcome this challenging period.
The conference support Vietnam’s post-pandemic business recovery efforts and Vietnamese businesses, especially SMEs to adapt to shifts in the global supply chain and create new and sustainable value chains. Participants learned about lead firms’ expectations and requirements, and discussed how enterprises can become more resilient to sudden changes in supply chains, actively seize new market opportunities and enhance production capability.
The MPI’s Agency for Enterprise Development, public and private business support organisations, and the USAID LinkSME project will work closely to implement practical activities to timely assist SMEs to upgrade their capability and participate in sustainable value chains.