THACO President : "We should make connections and create conditions for SMEs to cooperate and develop their production and business"

According to THACO President Pham Van Tai, when small businesses start to join the supply chain and receive their first orders, they should not fear or give up due to pricing pressure from customers, but consider it as a challenge to overcome. Once we could meet those needs, we have already had a place in the supply chain.

At the seminar "Supporting SMEs to join the global supply chain" organized by Tuoi Tre newspaper in collaboration with the Ministry of Industry and Trade and the Ho Chi Minh City Department of Industry and Trade on Feb. 28, THACO President Pham Van Tai commented that small businesses often meet pricing pressure which makes it hard for them to secure profits if they're going solo.

The seminar was joined by nearly 200 guests who are leaders at national-level agencies, Ministry of Industry and Trade and provincial leaders in the Southeast region, and members of domestic and foreign organizations and businesses to discuss and offer solutions in industrial development in Vietnam.

At the program, THACO President said, "Streamlining the production chain, cutting costs, and avoiding waste are the must-haves.”At the same time, when businesses cooperate and make use of each other's advantages, they can satisfy the order requirements, ending up making profits. Given strong cooperation among the businesses, price pricing will no longer be a problem and the businesses can overcome challenges to join the global supply chain.

“But this will be challenging for small businesses as they have to find ways to connect with other partners to fulfill customer orders. It is important that buyers find their products satisfactory to enter long-term and reliable relationships. We ourselves used to cover breakeven orders for long-term relationship, too,” added the THACO leader.

Vietnam plays an increasingly important role in the global supply chain thanks to capital shifts and a series of multinational corporations step up investment. Along with that, domestic enterprises also have many responding activities. Specifically, THACO INDUSTRIES, the THACO's mechanical sub-holding has been upgrading technologies, improving production capacity, investing and developing its facilities by building a Mechanical Center, an R&D Center, and cooperating with Binh Duong Province to build a VND25,000-billion mechanical and supporting industry industrial park. Those are the foundations of the corporation in improving its production capacity, quality and technology content in products, increase competitive edges, and meet domestic and export demands. At the same time, the firm also makes connections and creates conditions for SMEs to cooperate and develop their production and business, join its production chain, step by step participate in the global supply chain.

With opinions given by experts, scientists, and business representatives, the seminar hoped to provide more feasible solutions and policies for the future supporting industries, thereby promoting the industry in Ho Chi Minh City in particular and Vietnam in general.