36% local firms join global production networks

  • by VNBUSINESS
  • December 10, 2014

Only 36% of Vietnamese businesses take part in global production networks, including direct and indirect exporting, while the rate in Malaysia and Thailand is 60%.

According to the Vietnam Chamber of Commerce and Industry (VCCI), the involvement of local firms in the global value chains is lower than economies at the same level in the region.

This situation makes Vietnam’s supply chain dispersed and less benefited from foreign investment, the transfer of technology and knowledge and improvement of productivity.

 

It can be attributed to the fact that only 4% of Vietnamese businesses are of large and medium sized and as a result, they are not competitive and less involved in the supply chains, just focussing on the domestic market.

Source: VOV

{fcomment}

Related Articles