Many components for production and precision mechanical products made by Vietnamese enterprises surprised delegates at the seminar ‘Supporting Small and Medium Enterprises (SMEs) in Joining Global Supply Chains’ held at REX Hotel in Ho Chi Minh City on Tuesday.
Right after Do Phuoc Tong, chairman of the Ho Chi Minh City Association of Mechanical and Electrical Enterprises, introduced a high-precision plastic billet at the seminar, a visitor showed their interest in using this product in his company’s production line.
This proves that many products of Vietnam’s supporting industry have met international standards but they are not well known.
|Do Phuoc Tong (L), chairman of the Ho Chi Minh City Association of Mechanical and Electrical Enterprises, introduces high precision parts at a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
At the event, MTS Vietnam Company, a high precision fabricator, delivered a presentation on 50 precision mechanical products for automobile manufacturing and electrical machinery, according to representative Dang Huyen.
These products have successfully joined the supply chains of Japanese, American, and European enterprises, Huyen said.
|High precision parts are on display at a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
Cat Van Loi Joint Stock Company introduced its leading products for auxiliary equipment in the power industry, with many of them having been installed in large projects in Vietnam and exported to various countries.
The booth of Dien Quang Light Bulb Joint Stock Company aroused curiosity with small, sophisticated modern components produced at its factory in the Saigon High-Tech Park in Thu Duc City.
|Cat Van Loi’s components are on display at a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
Notably, Dien Quang participated in the seminar as both a supplier and a buyer, according to chairman Ho Quynh Hung.
The company has been promoting large-scale investment in electronics and engineering plastics industries, Hung said.
|Dien Quang Light Bulb Joint Stock Company’s products are on display at a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
Specifically, it has invested in modern and synchronous production such as a LED Chip factory, an electronic board factory, OEM and ODM production and assembly, and many others.
Duy Khanh Mechanical Company introduced spare parts for the automotive engine industry, which are the firm’s core products, besides mechanical products.
|Vngroup’s high precision parts are on display at a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
Do not fear low prices!
Pham Van Tai, general director of Truong Hai Auto Corporation (THACO), advised that small businesses should not fear or give up because of low prices offered for their very first orders, but they should consider that as a pressure and challenge to overcome.
“Because when we overcome it, we will secure a place in the supply chain,” Tai said.
Tai elaborated that large customers who create price pressure often intend to ask for large quantities and expect long-term cooperation.
The price pressure gives enterprises the motivation to improve their production chains, the general director said.
“Some customers asked us to reduce next year’s price by at least 20 percent compared to the previous year,” Tai recalled.
|Pham Van Tai, general director of Truong Hai Auto Corporation (THACO), attends a seminar in Ho Chi Minh City, February 28, 2023. Photo: Huu Hanh / Tuoi Tre|
“If we can’t reduce the price, they will show us how to do that.
“Streamlining the production chain, cutting costs, and avoiding waste are imperative.”
However, this practice is challenging for small businesses, Tai commented.
“They should find ways to connect with other partners, taking advantage of each other to fulfill orders,” he suggested.
“It is important to satisfy buyers so that we can gain trust and they will make long-term purchases.
“My company used to accept breakeven prices in order to win long-term cooperation.”
Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!