Increase domestic links, reduce import dependence

Generally in the first quarter of 2022, turnover import goods reached more than 87 billion USD, up nearly 16% over the same period last year. In which, accounting for more than 88% of total import turnover is the group of goods that need to be imported – raw materials and auxiliary materials for domestic production.

High world raw material prices, slow delivery, broken logistics chain leading to high transportation costs… are the problems that domestic enterprises face.

The prices of some types of plastic resins such as PP and PE have increased by about 10% compared to the end of 2021. With the continuously increasing price of plastic resins and difficulties from foreign suppliers, some businesses have taken the initiative. raw materials in place. The partners are all domestic suppliers.

It is very important for Vietnamese enterprises to master the source of domestic raw materials. (Illustration image – Photo: Labor)

For the textile and garment industry, a strategy to change the supply chain has been implemented in the past 2 years. Currently, according to calculations, 60% of raw materials and 85% of textile accessories have been transferred to Vietnam.

“From now until the end of the year, we will try to clear this part by another 10%. High-quality fabrics and materials that need large quantities and cannot be met will still be imported,” said Mr. Pham Van Viet, Vice Chairman. Ho Chi Minh City Sewing and Embroidery Association, said.

In order to remove difficulties for the import of raw materials in the face of current uncertainties, experts emphasized that it is very important for Vietnamese enterprises to master domestic raw materials. A localization strategy with short-term and long-term solutions will help enterprises take the initiative in the production chain.

Currently, there are many domestic enterprises producing raw materials for export, all of which are needed by Vietnam’s key export industries. In the long-term, it is necessary to take into account the factors that prioritize attracting investment in these manufacturing industries, creating a supply connection that closes the domestic market, reducing fluctuations in the global supply chain.

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