APEC promotes SMEs’ integration into global value chains in logistics

Saturday, 2017-08-26 17:09:00
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Representative of Vietnam speaking at the workshop (Credit: VNA)
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NDO/VNA – The development and cooperation of global value chains (GVCs), and the promotion of small and medium-sized enterprises (SMEs) towards integration into GVC’s, have been high on the agenda of, and supported by, APEC member economies via a vast chain of initiatives and activities, heard a workshop in Ho Chi Minh City, on August 26.

The workshop on “Promoting SMEs’ Integration into GVCs in Services Industries-Logistics” aimed to help participants gain a deeper understanding of logistics as an important service industry and the SMEs’ participation in logistics as part of the GVCs in services industries.

Luong Hoang Hai, Director General of the Multi-lateral Trade Policy Department under the Ministry of Industry and Trade, said that good logistics management, from the perspectives of governments and businesses, would contribute to enhancing competitiveness and growth.

Logistics involves a variety of areas such as sourcing procurement, order fulfillment, storage of raw materials, production planning, scheduling, controlling cost effective flow, assembly, packaging, maintenance, warehousing, distribution, finished goods and customers services,

Hai stated, adding that there is a huge room for SMEs’ involvement and their deep integration is inevitable.

The workshop was expected to contribute to empowering policy makers and regional businesses to facilitate SMEs in logistics through sharing challenges, experience and best practices, making recommendations on the strategies and policies needed to facilitate SMEs’ integration into logistics GVCs, and enhancing SMEs’ participation in logistics for their own sustainable development.

Tran Tri Dung, General Director of Logistics Knowledge Company Limited, told reporters that Vietnam has over 3,000 logistics companies, of which up to 99 percent are micro, small and medium-sized enterprises.

There are a lot of enterprises in need of logistics but their mindset towards these services remains ambiguous, Dung said.

Corazon Curay, CEO of XVC Logistics of the Philippines, shared that poor infrastructure has been a barrier to Philippine SMEs when integrating into the GVCs. But with the support of the APEC, the country has reformed its policies to assist SMEs in joining the GVCs.