HCMCity (VNA) – The AmCham Supplier Day 2018 was held in Ho Chi MinhCity on October 4, attracting the participation of hundreds foreign invested businessesand Vietnamese suppliers.

This was the fifth consecutive time the American Chamber of Commerce in Vietnam(AmCham Vietnam) had hosted the event, which saw a scale expansion and changesin the way of approaching among suppliers and producers to help develop global supply chains.

At the event, BrianMtonya senior economist at the World Bank said a lack of competitive localsuppliers causes foreign firms to look elsewhere for companies that canprovide consistent and timely inputs needed to finalise production.

He pointed out the reasons for market failures that have deterred thedevelopment of FDI and SME (small- and medium-sized enterprises) linkages.

In Vietnam, local suppliers lack competitiveness in terms of quantity,price and quality, while more foreign-owned firms holdinternationally-recognised quality certifications.

In addition, more Vietnamese firms complain about access tofinance than firms from peer countries, according to Mtonya.

The lack of a skilled workforce across sectors in Vietnam is also a problem.

Michael Trueblood, director of the economic growthand governance office for USAID/Vietnam, said SMEs facechallenges integrating into global value chains.

Quantity, quality, and standard process requirements are common challenges thatneed to be addressed.

SMEs often start as household businesses, and later meet challenges in theregulatory environment, all of which hinder linkages to foreign firms or exportmarkets, Trueblood said.

The USAID mission goals related to economic growth will help Vietnam’s continuedtransformation by strengthening the SME – Foreign Firm businesslinkage framework, he said.

The new project, called Linkages for Small and MediumEnterprises (LinkSME), will enhance Vientamese SME’s capability toparticipate in global value chains in five sectors.

The 22 million USD five-year project, which began in September, willimprove and expand the supplier-buyer relationships between Vietnamese andforeign firms, according to Trueblood.

Ninety local suppliers and 68 FDI manufacturers of different industries tookpart in the fifth annual event organised by the American Chamberof Commerce, featuring an exhibition of 70 booths for manufacturers ofvarious industries.

Participating manufacturers andsuppliers received information from the WorldBank, Vietnam Chamber of Commerce and Industry, USAID, WeConnect andArizona State University at workshops held during the event.-VNA