Hanoi (VNA) – Participating in global value chains is an inevitable steptowards building and developing brands, as well as gaining a firm foothold onthe world market, said Le Hoang Tai, deputy head of the Trade Promotion Agency,at an investment promotion workshop in Hanoi on April 11.

Tai stressed that international trade haswitnessed the formation of global value chains, which attract the participationof not only developed, but also developing nations.

In developing countries like Vietnam,global value chains have helped local enterprises gradually undertake differentstages of the production process and bring into full play trade advantages, thusspeeding up the industrialisation process, he added.

The Vietnamese economy has maintained itsdevelopment trend over the past time. According to a report by the GeneralStatistics Office (GSO), the national GDP in 2018 rose by 7.08 percentyear-on-year, the highest level since 2008, in which the industrial sectorenjoyed a growth rate of 8.79 percent, accounting for 28.44 percent of the GDP.The index of industrial production last year increased by 10.2 percent, withprocessing and manufacturing remaining the main driver with a growth rate of12.98 percent.

Over the past few years, both domestic andforeign investors have continued to put their confidence in the stability ofVietnam’s macro-economy and invest in the country’s industrial sector. Someoutstanding investment projects are the 35-trillion-VND (1.5 billion USD)Vinfast automobile production complex project, with a capacity of 500,000 unitsa year; and Hyosung Corporation’s 1.2-billion-USD project to build apolypropylene (PP) plant and underground storage facilities for LPG.

GSO statistics show that last year,processing and manufacturing attracted the largest share of foreign investment,with newly-registered capital totalling 9 billion USD, accounting for 50.5percent of the total newly-registered capital.

Big enterprises choosing Vietnam as thelocation of their factories offers opportunities for Vietnamese businesses toparticipate in global value chains. For example, the Republic of Korea’sSamsung Group recently announced its requirement of about 500 supply firms forits production facilities in Vietnam during the 2019-2020 period.

However, Vice President and GeneralSecretary of the Vietnam Association for Supporting Industries Truong Thi ChiBinh pointed to the fact that many small- and medium-sized Vietnameseenterprises have yet to meet orders, either in terms of price or volume.

Therefore, Binh advised businesses tochoose products suitable for their capacity.

She also stressed the need for policies toprioritise domestic supply, and attract domestic and foreign investments in theproduction of certain products depending on different periods. –VNA