State enterprises bolster Vietnamese goods chain

State enterprises bolster Vietnamese goods chain

Prioritizing the use of each other’s goods and services has helped many businesses save costs, source raw materials and build a sustainable chain of Vietnamese goods.

Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) is one of the pioneers in prioritizing the use of goods and services provided by domestic enterprises. A Vinacomin report shows that the group’s major production units buy products made by each other worth over VND2 trillion annually. These include such goods as Cominlub lubricant made by Vinacomin Materials Trading JSC, with annual internal consumption of about five million liters, and nearly 51,000 domestically made labor protective outfits.

Vinacomin also signs contracts with the state-owned Enterprise Bloc for procurement of over 220,000cu.m of gas and diesel each year from the Vietnam National Petroleum Group (Petrolimex) and Petrovietnam Oil Corporation (PVOIL) with annual value of over VND2.2 trillion. Vinacomin’s units have also been proactive in buying and selling material supplies from Vietnam Steel Corporation, Vietnam National Cement Corporation and the Vietnam Rubber Group, coordinating with state banks to mobilize project capital as well as financial management, and salary payment for employees.

Deputy General Director of the Vietnam National Textile and Garment Group (Vinatex), Cao Huu Hieu, said member units of the group have prioritized the use of domestically made office equipment and of domestic materials and services of the same quality to replace imported ones to serve production and business.

At a conference on solutions to promote implementation of the “Buy Vietnamese goods” campaign, recently organized by the Party Committee of the national-level State-owned Enterprises Bloc, 24 out of 38 enterprises signed 1,543 contracts to use each other’s services and products, worth about VND1.403 trillion.

For example, under one such cooperation agreement, the Vietnam Post Corporation (Vietnam Post) will provide comprehensive logistics services for Vinatex, including international shipping, warehousing, and goods distribution to stores, showrooms, and supermarkets. Meanwhile, Vinatex is committed to providing high quality products and services to Vietnam Post, such as designing and sewing uniforms for employees at competitive prices.

The signing ceremony of a cooperation agreement between Vietnam Post and Vinatex

Deputy Minister of Industry and Trade Do Thang Hai, Deputy Head of the campaign’s Central Steering Committee, said the mutual agreements signed at the conference and elsewhere have yielded practical effects such as building a sustainable production and consumption chain of Vietnamese goods and increasing the rate of advantageous Vietnamese goods in distribution systems.

“Currently, the percentage of Vietnamese products in supermarkets and commercial centers has risen to 80-90 percent, even to 94-96 percent in the Go! supermarket chain of the Central Retail Group, and 60-70 percent in the traditional markets, reflecting the campaign’s major influence,” Deputy Minister Hai said.

VietNam Economic News