HCM City (VNA) – Linking small and medium-sizedenterprises (SME) and selecting some of them to join the supply chain for FDIfirms to boost support industry is among ideas to promote the role of SMEs in theindustry’s growth that was given in a recent conference in Ho Chi Minh City.

Currently, Ho ChiMinh City is focusing on four major industries of mechanics,electronics-information technology, pharmaceutical chemistry and foodprocessing, along with two traditional ones of apparel and footwear.

The four major industries’ contribution to the city’s totalindustry structure rose to 60 percent in 2015 from 54.6 percent in 2005, whilethe other two traditional ones made up 17.7 percent.

However, the support industry for the sectors has faced manydifficulties, as the majority of firms in the field are SMEs with limitedcapital and technology, making it hard to expand production and join the globalsupply chain.

According to Ho Minh Son, General Director of Amura Precision,a mechanics company, support industry should be paid special attention to meethigh demand of the world market, especially developed countries.

Son suggested that along with more investment in technologyand human resource training, it is necessary to connect enterprises in thefield to enhance their mutual support and coordination, creating a supplycircle and bringing higher added value to all parties.

In Ho Chi Minh City and Vietnam at large, joining the supplychain for FDI firms remains a challenge for Vietnamese businesses, he said,taking Intel Products Vietnam as an example. The firm needs 100 suppliers whileonly 18 firms can cooperate with it, the majority of them are foreign-invested.

Meanwhile, Le Bich Loan, deputy head of the Ho Chi Minh CityManagement Board for High Technology Industrial Parks, proposed the selectionof some firms to join supply chain for FDI businesses.

The city should design special policies for the chosen firmsto produce outstanding products in terms of quality and price, thus drawingmore orders from FDI firms, she said.

At the same time, Tran Anh Tuan, acting head of theInstitute for Development Studies, the growth of SMEs remains limited as therehas been no specific law applicable to them and poor support in various fields,including tax, market, trade promotion, technology and human resources.

Tuan held that stronger support for SME should me made withcareful selection of sectors, adding that Ho Chi Minh City should prioritise hightechnology, support industry and startup.-VNA