Business

Promoting industrial enterprises’ deeper integration into supply chains

AN PHUC 21/08/2025 11:30

Hai Phong is an industrial and seaport hub with a strategic position in both Vietnam’s and the global supply chain.

Cán bộ, công nhân Công ty TNHH Thương mại và sản xuất Ống gió Sao Việt trao đổi về quy trình sản xuất.
Staff and workers of Sao Viet Air Duct Trading and Manufacturing Co., Ltd. discuss the production process

Hai Phong is an industrial and seaport hub with a strategic position in both Vietnam’s and the global supply chain. However, the city’s industrial enterprises have not yet been able to integrate deeply into the production networks of foreign-invested (FDI) enterprises.

Sao Viet Air Duct Trading and Manufacturing Co., Ltd., located in Ngo Quyen ward, specializes in producing air-conditioning ducts for projects of various sizes, including those of many FDI enterprises.

With a factory area of 2,000 m2 and 30 workers, the company produces around 60 tons of finished ducts each month. Nevertheless, its production scale has yet to meet the growing market demand. The enterprise needs greater capital to invest in new green technology, reduce emissions, and expand its production scale. In fact, the main challenges of small- and medium-sized enterprises are weak access to capital and high costs for production premises.

Similarly, Tam Chien Electric Cables JSC. in An Duong industrial park, specializes in producing electric cables for supply to Northern and Central provinces with an average output of 100 tons per year.

At present, more than 80% of the electric cable market belongs to Vietnamese enterprises. Yet, due to both subjective and objective reasons, this company, like many domestic ones, has not been able to penetrate deeply or become suppliers for FDI enterprises in this sector despite their great demand.

Công nhân Công ty TNHH thương mại và sản xuất Ống gió Sao Việt tham gia sản xuất.
A worker of Staff and workers of Sao Viet Air Duct Trading and Manufacturing Co., Ltd. at work

Nonetheless, Hai Phong’s industrial enterprises remain proactive in adapting and maintaining stable production growth. This determination is reflected in the city’s industrial production index (IIP), which was estimated to have increased by 14.35% in the first seven months of 2025 compared to the same period last year. Some industries even recorded double-digit growth in IIP, such as electronics, computers, and manufacturing.

Meanwhile, the Politburo’s Resolution 68 on private sector development, with special mechanisms and breakthrough policies, is providing strong inspiration for entrepreneurs and enterprises, including industrial ones.

Resolution 68 is expected to help remove difficulties, inadequacies, and bottlenecks hindering the growth of private enterprises, especially small- and medium-sized ones, and to introduce solutions that support them in overcoming barriers. Many enterprises hope this will serve as a springboard to seize opportunities for participation in the global supply chain.

Dang Thanh Tu, Director of Tam Chien Electric Cables JSC., said that if his company could access preferential loans, it would be able to invest in production lines, improve the capacity of its workforce, and gradually move toward supplying products to FDI enterprises in Hai Phong.

Pham Doan Tung, Chairman of the Hai Phong Association for Supporting Industrial Development, emphasized that human resources are the key to success. In the coming period, the association and related agencies will support 468 member enterprises in further improving the quality of their engineers and skilled workers, enabling them to quickly absorb and produce mechanical precision components and electrical-electronic parts to meet the needs of FDI enterprises in the city as well as the country.

AN PHUC

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Promoting industrial enterprises’ deeper integration into supply chains