Pressure has been mounting recently for firms to expand and cash in on Vietnam's domestic market due to export challenges, said Bui Ta Hoang Vu, director of Ho Chi Minh City's Department of Industry and Trade.
A decline in purchasing power has greatly affected the production and business of enterprises in HCMC as well as other localities, Vu told a press conference held on Wednesday to introduce the Mekong Connect Forum that will run from November 15–16 in the city.
"Enterprises used to be paid up front for their goods, but now export partners are only making payments once they have sold the goods themselves. This is generating numerous problems for Vietnamese enterprises," he noted.
Vu said that many Vietnamese enterprises are returning to their home market. In the process of connecting provinces, HCMC's Department of Industry and Trade said that localities are not only a source of raw materials but also markets that can be tapped, so linking HCMC and provinces in the Mekong Delta region is vital.
He also stressed that important markets have been placing very strong and specific requirements on green production, and they are using these criteria to block Vietnamese exports.
"The Bangladeshi textile industry has nearly converted to green production, so in the difficult global context, they still have an abundance of orders, while many Vietnamese textile and garment enterprises are struggling due to a lack of orders,” Vu said.
According to him, some Vietnamese industries are currently taking specific actions in the process of converting to green production. The Mekong Connect 2023 forum is aimed at successful businesses that have overcome these barriers to share their experience with other firms about green economic and sustainable development.
The forum has the theme: "Connecting supply chains and value chains between HCMC and the Mekong Delta region towards a green and sustainable economy" and is being organized by the Department of Industry and Trade of HCMC in collaboration with the High Quality Vietnamese Goods Business Association.
Vu Kim Hanh, chairwoman of association, said that this is the second time the forum has been held in HCMC, which shows the importance of the city in connection and cooperation with the Mekong Delta region, in terms of linking and integrating resources for economic and social development.