Experts say the current global economic context requires manufacturing enterprises to convert production according to market trends. — Vietnam News
HO CHI MINH CITY: Besides the factors of price, product quality and delivery time, green and sustainable development are competitive criteria that more markets are requiring from suppliers in Ho Chi Minh City as well as across the country.
Although manufacturing enterprises in the city are constantly striving to contribute to the recovery of economic growth, many domestic and foreign challenges are affecting businesses.
According to experts, the current global economic context requires manufacturing enterprises to convert production according to market trends, especially product standards that must meet consumer tastes.
Conflicts around the world such as between Russia and Ukraine are creating a series of new difficulties for manufacturing businesses.
In addition, the challenges of inflation, consumer markets and technical barriers are also challenges for manufacturing enterprises to quickly adapt to new market trends.
The European Union (EU) has introduced a series of new policies on ecological products, expanding responsibility for manufacturers, supply chain traceability, recycling and special requirements to reduce carbon emissions.
When these series of policies are issued, they will require all countries exporting to the EU market to comply.
Obviously, this is a big challenge for manufacturers, including Vietnam.
If Vietnamese businesses want to participate in the supply chain, there is no other option than to comply with consumer regulations.
Bui Ta Hoang Vu, director of the city’s Department of Industry and Trade, said the city’s index of industrial production (IIP) in June increased only 0.3% over the previous month and rose 7.8% over the same period a year ago.
Meanwhile, the IIP index in the first six months of the year reached a growth rate of 5.6% over the same period last year, the biggest increase in the last three years.
However, the production index of four key industries including pharmaceutical chemistry, food processing, mechanical engineering and electronic manufacturing in the first six months of 2024 increased by 5% over the same period, 0.6 percentage points lower than the industry-wide IIP.
The production index of the three traditional industries of clothing, textiles, leather and leather products decreased by 2.3% over the same period.
These statistics show that industrial production activities in the city are recovering but may not be sustainable.
Faced with these difficulties, manufacturing enterprises need to proactively change strategies in accordance with market trends and improve quality to meet increasingly strict production standards, experts said.
Nguyen Anh Duc, chairman of the Association of Vietnam Retailers and general-director of Saigon Co.op, said that switching to production that closely follows market trends is no longer an option but a mandatory requirement. — Viet Nam News/ANN
