Практика Shadowing: Vietnamese firms adapt to global supply chain disruptions | Vietnam Today - Изучайте разговорный английский по видео

Tensions in the Middle East are disrupting global value chains and as a nation with a high export volume, Vietnam is no exception.

As shipping routes become increasingly volatile, local firms are being forced to adapt to maintain competitiveness.

And we'll have more in the following story.

across all sectors vietnamese businesses are navigating these ongoing disruptions facing

growing pressure on their ability to sustain stable operations amid international commitments amid geopolitical tensions and volatile energy prices

more than 62 percent of vietnamese firms have been significantly affected For essential goods like rice,

where prices cannot rise sharply without unsettling consumers, businesses are absorbing the pressure by cutting margins and tightening costs.

And how long they can sustain that balance will determine their resilience to future shocks.

The wide geographical distribution of our raw material loans across diverse

ecosystems has significantly enabled us to maintain a continuous supply that meets our established standards.

We have developed highly flexible processes and integrated management technologies to enhance our forecasting capabilities on global disruptions.

Within the factory, we are also optimizing fuel efficiency by operating production hours flexibly to reduce overall manufacturing costs.

We have implemented measures to secure inventory levels,

plant our overseas raw material requirements and eliminated unnecessary transport shipments.

Regarding domestic routes, we have negotiated with customers to readjust delivery schedules.

Furthermore, we have developed contingency plans by pre-positioning material supplies at production hubs.

As global disruptions may become the new normal, shifting toward a more resilient business mindset is no longer a choice.

It is a matter of survival.

Vietnamese businesses will move further towards regionalization and risk diversification.

What we're likely to see is more near sourcing within Asia, more inventory held closer to production sites,

and greater demand for readily built industrial space linked to logistics.

Firms need to diversify suppliers, secure better visibility across logistics chain,

review inventory strategy so they don't waste any goods and products and reduce dependence on single shipping routes or single source inputs.

As firms pivot toward regionalization and stronger local sourcing, Vietnam is redefining its role in the global value chain,

moving away from a low-cost destination toward a resilient and indispensable partner in global trade. and

while global supply chain disruptions persist foreign invested firms in vietnam

are also facing mounting pressure from rising costs geopolitical risks

and ongoing logistical volatility and among those most exposed are european businesses with deeply integrated international networks

and to explore how they are responding join us uh joined with us today is Eric Contreras, a vice chair of Eurocham.

Now, thank you so much, Eric, for coming over to our News Live Bulletin today.

So our first question to you is, how does Eurocham assess the potential impact of disruptions in the global supply chain on foreign invested businesses in Vietnam?

For foreign invested, especially European FDI firms, They really have a highly integrated supply chain, global supply chain.

They're more affected with the current international situation.

Based on the latest business confidence index that we got for Q1, we get a result of 72.7.

We believe that's quite solid, but it still fell lower than the last result by about 13 percentage points.

90% of our members really report cost pressures and geopolitical risks as their top concerns for the year.

Energy and fuel price volatility are really weighing in on the investors' appetite and their perception.

If you look at the agricultural food, which is heavily affected by the, for example, supply of fertilizers and their raw material inputs,

they really show a 90% drop.

I think this is really a big, big impact because of the rising raw material.

Right.

So in the short term, what policy measures

and financial support are most critical for European businesses in Vietnam to cope with rising logistics costs and maintain stable operations?

To offset rising shipping costs from the Middle East tensions, businesses are really prioritizing working capital.

This is why we are advocating so strongly for VAT refunds.

It is about keeping cash in the hands of the businesses so they can absorb higher logistics costs without cutting production.

Businesses could really appreciate further progress in infrastructure development,

streamlined administrative procedures, and faster decision-making processes.

These are consistently identified as the most impactful areas for policy action.

So do you see the disruptions as a motivation for Vietnam to strengthen its supply chain resilience?

And what long-term strategies will be critical for businesses to withstand similar shocks in the future?

These disruptions are the ultimate motivation for Vietnam to move beyond attracting FDI to retaining them through systematic efficiency,

through bamboo diplomacy that the government really is good at, against especially the Southeast Asian competitors of Vietnam.

The make or break now is speed and decentralization.

We need to untangle overlapping compliance and empower local authorities to make faster decisions,

to keep businesses competitive, and to make Vietnam even more attractive destination for investments.

The most important number in the VCI is 93%.

This is the percentage of the businesses that will still recommend Vietnam.

Vietnam is an investment destination.

This proves that the long-term magnetism, the long-term attractiveness of Vietnam is still there.

Well, thank you so much, Eric, for your insights.

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Практика Shadowing: Vietnamese firms adapt to global supply chain disruptions | Vietnam Today - Изучайте разговорный английский по видео

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Что такое техника Shadowing?