Improving productivity for integration into global supply chains

Since 2011, 91 per cent of enterprises participating in the SCORE project have reported production cost saving, 61 per cent improved work place communication, 29 per cent reduced defect rate and 42 per cent lowered labour turnover.

During the current globalization process with great development of technological sciences, notably the world’s entering into the fourth industrial revolution, and recently the changes in wage policies, the competition relying on abundant cheap labour resource is no longer considered as advantage of the Vietnamese businesses. The labour productivity and product quality, instead, are deciding factors to the business competitiveness. In particular, for the small and medium enterprises (SMEs), the process of integration into the global supply chains requires ceaseless effort of each company in looking for suitable solutions for cost saving, production improvement, increasing the labour productivity, in the context of limited resources of technology, finance and human resource.

Since June 2011, in order to support the SMEs to overcome the obstacles for wider and more active integration into the global supply chain, VCCI HCM, in cooperation with the ILO, has deployed the Sustaining Competitive and responsible Enterprises (SCORE) project. Up to date, the project has supported more than 110 companies in wood and furniture industry, nearly 30 companies in mechanical and garment industries for achieving remarkable results: 91 per cent of participating enterprises report production cost saving, 61 per cent have improved work place communication, 29 per cent have reduced defect rate and 42 per cent reduced labour turnover. On parallel, the project has helped strengthening the roles of business associations in the project areas by mobilizing the active participation of their members and the associations themselves, namely Binh Duong Furniture Association (BIFA), Forest Products Association of Binh Dinh (FPA), Handicraft and Wood Industry Association of HCM City (HAWA).

Based on those encouraging results, the project strategy for the next phase will focus on expanding its support to other production sectors such as supporting industries, garment, leather and footwear, food processing, electric and electronics, etc. by applying the approach and experiences of SCORE Training which have been developed and improved during the 2011-17 period.

VCCI HCM and the ILO in Viet Nam co-organize this forum for summarizing the past activities of the project, introducing its strategy for enterprises support in the upcoming phase and creating a stage where the stakeholders and involved parties can share and exchange the advantages and difficulties as well as information related to measures for improving the productivity, working conditions and competitiveness of the SMEs during the process of integrating into global supply chains.

The forum is attended by representatives from the leaderships of VCCI, ILO, the Norwegian Embassy to Vietnam, the Consulate General of Switzerland in HCM City, the Ministry of Labour, Invalids and Social Affairs, the Vietnam General Confederation of Labour, provincial Departments of Labour, Invalids and Social Affairs, Departments of Industry and Trade and provincial Federations of Labour from the provinces of Binh Duong, Dong Nai, Long An and HCM City. The forum also attracts participation of the multi-national corporations, the business community of Viet Nam, those who have participated and will continue in SCORE Programme, as well as the interest and participation of press and public media agencies.

On this occasion, an exhibition of the improvements achieved by the SMEs while participating in SCORE Training is also organized for the purpose of sharing the experiences and good practices from the Programme to wider business community.