Financial solutions for the global supply chain in Vietnam

DNHN - The import and export of goods have played an important role in connecting Vietnam with the global economy. To ensure effective connectivity in the global supply chain, the application of financial solutions is essential.

Financial solutions play an important role

To facilitate global production and supply, Vietnam needs to increase investment in financial infrastructure. This includes developing banks, exchanges and other financial infrastructure to support trading, payment and security activities.

To enhance the competitiveness of businesses in the global supply chain, the government and financial institutions can provide financial support policies. This could include providing preferential capital, tax and interest rate reductions for businesses involved in export and import.

Vietnam can strengthen the development of its financial market to attract investment capital and create conditions for financial activities to develop. This can be achieved by expanding the stock market, developing the bond market and strengthening cooperation with international financial institutions.

To effectively implement financial solutions, Vietnam needs to invest in training and improving the financial capacity of staff and experts in this field. This helps to improve financial management knowledge and skills, thereby creating professionalism and reliability in financial operations.

Vietnam can strengthen cooperation with financial institutions and international partners to share experience, knowledge and financial resources. This can be done by establishing links with international financial institutions, participating in international financial forums and conferences, and learning from countries with experience in developing global supply chains.

In summary, to enhance Vietnam’s competitiveness in the global supply chain, financial solutions play an important role. By investing in financial infrastructure, providing financial support for businesses, developing financial markets, training and improving financial capacity, building an effective financial management system and strengthening international cooperation, Vietnam can create a favourable financial environment that encourages the sustainable development of the global supply chain in the country.

A rather “difficult” problem for Vietnamese businesses

Experts say that building an effective financial management system is an important factor in ensuring the stability and sustainability of the global supply chain. This includes applying international financial management standards, improving accounting and financial reporting processes, and ensuring compliance with international financial regulations and rules.

Sharing about this issue, Mr Luu Van Dai - Director of Metal Heat Vietnam Joint Stock Company, a unit specialising in heat treatment of automotive, motorcycle and machine parts, said that finding a way to participate in the global supply chain of large corporations is a problem that many Vietnamese mechanical businesses are “struggling” to find a solution for. Because businesses see a lot of opportunities but do not have capital, so they do not dare to invest and do not have the ability to invest.

According to Mr Dai, the products that businesses participate in the supply chain of large corporations must meet at least 2 criteria, which are quality and price. This requires businesses to have good technology and find the optimal production method to reduce production costs, thereby reducing product prices. China is a “kingdom of cheap prices”, but when it comes to products in the chain, even the prices that Japanese companies sell are very reasonable. This is more or less related to the technology that Japanese businesses are applying.

Mr Dai said that advanced technology will optimise production, and create product lines with good quality and reasonable prices. Accessing advanced technology in the world or studying advanced technology is not a difficult thing for Vietnamese businesses.

“But capital is the biggest problem that domestic mechanical businesses are very weak in” - Mr Dai affirmed and said that investing in new technology requires a lot of money, and a small business is very difficult to have enough financial potential to invest in modern technologies, start-up businesses are even more difficult in accessing this technology.

Nhan Ha Phan