Using Supply Chain Integration Theory for Establishing Industrial Cluster to Facilitate the Growth of Small and Medium Enterprises: Evidence in Vietnam
Volume 10, Issue 2 (2020), pp. 763–777
Pub. online: 30 December 2020
Type: Article
Open Access
Published
30 December 2020
30 December 2020
Abstract
In an economy, the product of one industry is the input to another, the product of one enterprise is the input of another business and the end consumer. Countries that know how to create industry linkages to attract businesses to participate will promote business growth in both quantity and quality. In Vietnam, an efficient chain of industry links has not been formed, so it has not created favorable conditions for businesses to develop. Most of the FDI enterprises come to Vietnam to participate partly in the global value chain, but the ability of domestic enterprises to participate is still very limited. The domestic industry linkage chain has not been clearly shaped, the domestic enterprises operate sporadically, so it has not created an attractive ecosystem for small and medium enterprises to participate. To create industry linkages for domestic enterprises to participate, it is necessary to build models of production organization in industries from market research, product design, and organization of satellite businesses to the production of details and components in order to establish a distribution system to the market. Mechanisms and policies focus on supporting and providing incentives for enterprises joining industry clusters operating in all phases of investment in research, design, supply of ancillary products, and distribution.