Skip Ribbon Commands
Skip to main content
Friday, September 24 2021
Tiếng Việt
a A
Date 02/07/2021-17:18:00 PM
The results of industry supply chain analysis in the context of Covid-19
(MPI) – In the framework of cooperation in researching and developing policies between the Ministry of Planning and Investment (MPI) and the United Nations Development Programme (UNDP) in Vietnam, UNDP had developed a report about supply chains of some industries in the context of Covid-19, first for three sectors: Agriculture; Food processing and Car – E-vehicle. To cooperate for research and policy development, the MPI had organized a presentation meeting chaired by the Minster of MPI Nguyen Chi Dung on July 02nd, 2021. The meeting was held among the Research Team of UNDP, some experts, and relevant agencies inside and outside the Ministry.
Overview of the meeting. Photo: MPI

Presenting the Research report, the representatives of Ernst & Young Vietnam Ltd said that the research was to re-assess the impact of the Covid-19 pandemic on supply chains of some industries in Vietnam, thereby recommending policies to enhance the participation of some domestic enterprises, especially Small and Medium Enterprises (SMEs), into global supply chains of the three chosen sectors, as well as drafting a framework of the policy recommendations within 3 years, including a short-term action in 6 months, a mid-term action in 1 year and a long-term one in 3 years.

The research is conducted in four stages: Preparation and unification of approaches and implementation; Strategic analysis and general assessment of supply chains of ten sectors to evaluate and choose for three priorities; In-depth analysis of supply chains of the 3 prioritized sectors as chosen; and Recommendations for supporting policies and interventions for three selected sectors.

After selecting three sectors -Agriculture, Food processing and Car – e-vehicle for closer research in the stage two, the consultant had conducted closer examination and interviewed with 50 partners including State Management Agencies, associations and enterprises to analyze the supply chains, including five steps: Identify components of a supply chain; Analyze identified components; Evaluate the business ecosystem in Vietnam in supply chains; Identify problems, opportunities and major challenges; and Encourage support policies and consistent interventions.

According to the survey results, the Covid-19 pandemic revealed weaknesses in supply chains of agriculture and food processing, led to many challenges for businesses in responding to market disruption in the context of pandemic. Outstanding problems are the under-developing logistics system; the main distribution channel is cross-border and traditional markets export; the ability to apply international standards and traceability to meet the needs of the international markets; R&D capacity to participate in higher value activities in the supply chains as well asimport substitution; and branding capacity.

Based on the analysis, the consultant had provided potential support policies and intervention methods as well as drafted the development framework to implement these policies for short-term (6 months), medium-term (1 year) and long-term (3 years) actions, aiming to support recovery form Covid-19 and increase the private sector participation into the global supply chains. Suggested intervention methods for agriculture and food processing sectors are divided into short-term, medium-term and long-term periods according to the supply chains of agriculture and food processing; for the car and e-vehicles industry, recommendations are mainly the transfer into e-mobility and it is suggested to be implemented in the mid-term and long-term periods.

Experts at the meeting said that the research was careful and meticulously prepared. They also suggested the product groups should also be specified, the profit margin of the categories should be calculated, research contents should be further analyzed, and both domestic and foreign supply chains should be studied to locate the position of Vietnam and the path of the supply chains. Regarding sector selection, agriculture should be researched more in fisheries, agriculture, food processing, textiles, footwear, electronics, etc. Research needs to dig further into agricultural inputs; production process, domestic and international scale, process and distribution; linking supply chains with value chains and financial flows; which is not only finance for investment but also finance for total value. At the same time, it is necessary to have a different perspective on policy and competitiveness to see what Vietnam needs to do to improve the value and encourage growth for its current supply chain in the short-term period from now on to the middle of the next year.

Caitlin Wiesen, UNDP Resident Representative in Vietnam. Photo: MPI

Caitlin Wiesen, UNDP Resident Representative Vietnam said at the meeting that the persistence of the pandemic raised questions about the timing and strength of the economic recovery, and policies that deserve consideration to move forward better with environmentally and socially sustainability and would leave no one behind. The aim of this study was not to develop a blueprint for recovery nor to offer a comprehensive review of position of Vietnamese firms in global value chains.

The assignment developed by MPI was to explore opportunities for domestic firms to increase value added as the pandemic unfolded and the economy started recovering. The research team selected ten sectors for review and three sectors for closer examination. The results pointed to some concrete policy recommendations that the Government can consider as efforts to deepen the participation of domestic firms in exports and value chains, specifically in the sector of e-vehicle, food processing and agriculture. However, economic recovery from Covid-19 raises many other policy issues and UNDP commits to working with MPI and the Government on a broad front.

Mrs. Caitlin Wiesen said that together with National Center for Socio-Economic Information and Forecast, a unit of MPI and Fullbright University Vietnam, UNDP would soon launch the “Viet Nam Economic Pulse” – a semi-annual forum on economic issues and analysis. The first forum, to be held in Hanoi later this month, will focus on sustainable development financing, which is a key factor in the recovery and in building forward better and leaving no one behind. A second forum is scheduled on December in Ho Chi Minh City on the global value chains and increasing the capacity of domestic firms to succeed in export markets.

UNDP also cooperates with the National Innovation Center (NIC) and its initiatives to create an ecosystem to support Vietnamese enterprises and their participation in the Fourth Industrial Revolution. The collaboration includes training courses for SMEs innovation, sharing international experiences in supporting innovative SMEs and building a vision and strategy for the NIC.

UNDP has a long-term partnership with MPI on green growth, including mainstreaming the green recovery approach into the new Green Growth Strategy in 2021-2030 and vision to 2050. The strategy will identify opportunities for the acceleration of the transition to a green and resilient economy. UNDP will continue to work closely with MPI and the Ministry of Labor and Social Affairs on initiatives to modernize Vietnam’s social protection system.

Minister Nguyen Chi Dung delivered his speechthe meeting. Photo: MPI

At the conclusion, Minister Nguyen Chi Dung informed that Vietnam was developing an economic recovery program and those research could be applied into this program immediately, because the study mentioned the disruption of supply chains and opportunities of Vietnam as demand increased again, supply chains appeared and strongly developed in a short term. In the long run, it is important to restructure all economic sectors in Vietnam. Currently, we must not only prevent the disruption of supply chains but also think about recovery plans in the medium term and long term. International organizations should consider and accompany MPI on researching economic recovery program after Covid-19 and extend other problems of the economy on that basis.

At present, the MPI is developing new Green Growth Strategy in 2021-2030 and vision to 2050, and its contents will be demonstrated by Vietnam as its upcoming commitments at COP 26 through growth model, development direction to reduce emissions and increase higher environmental protection goals. Therefore, all UNDP’s suggestions and recommendations for the Government should closely attach to Vietnam's Green Growth Strategy.

In terms of specific issues in the agriculture sector, Minister Dung suggested clarifying Vietnam’s current opinions in developing agriculture, transfering agricultural production to a high effective agricultural economy, especially focusing on organic production, for organic agriculture has become a global trend. Logistics cost for the entire economy now accounts now for 17% of GDP. Vietnam has Decision No. 221/QD-TTg issued by the Prime Minister on February 22nd, 2021 on adding and amending Decision No. 200/QD-TTg dated February 14th, 2017 on the implementation of Action Plan to enhance competitiveness and develop logistics services in Vietnam by 2025, setting a goal to achieve the logistics cost about 5-6% of GDP by 2030.

The MPI is assigned by the Government to develop policies that support enterprises suffered from Covid-19, thus the Ministry hopes that there will be a deeper research and closer suggestion necessary for the current situation. It is also expected to cover some important sectors and fields, and recommend ideas to further review and support the Ministry in developing the best economic recovery plan./.

Ministry of Planning and Investment

  • Viewed: 1554


(Choose stars to rate)
Copyright by Ministry of Planning and Investment
Address: No. 6B, Hoang Dieu, Ba Dinh, Hanoi - Tel: (84-80)43485; (84-24)38455298 (Ministry Office);
Fax: (84-24)38234453 (Ministry Office); Email: