July 22, 2018 17:49

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Medium and small enterprises put more effort to enhance technology in the revolution 4.0

09:57 | 09/04/2018

VCN –With an open economy like Vietnam, the business development trends will be updated and accelerate rapidly due to industrial revolution 4.0. Therefore, enterprises, especially small and medium enterprises, must make every effort to catch up with trends and improve their development.  

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Enterprises have to find ways to change the technology but they still need development support from the management authorities. Photo: Hồng Nụ

Catching up the trend

Mr. Ha Quyet Thang, Director of Kim Long Production and Trading Service Co., Ltd (a company specializing in production and manufacturing of mechanical parts and molds), said that enterprises have already to invest more and buy more new equipment. The company has invested 2 more new technology manufacturing machines from Japan, each machine worth 150 million yen, which is equivalent to about 4 billion VND excluding taxes. Thanks to the purchase of this equipment, the company has expanded its capacity; Moreover, this is the most modern machine with high accuracy that should help businesses increase the output of the product but reduce the delivery time, meeting the requirements of partners from Japan.

For companies with stronger financial strength, the change in technology is fierce. In addition to investment in machinery and equipment to produce 100% automation, many companies also develop the intelligent plant model, using artificial intelligence to control production. Typically, Thai Binh Shoes Manufacturing and Investment Joint Stock Company has equipped new technology such as programmable sewing machines, computer embroidery machines, laser cutting machines ... to automate the production stages; improve product quality, increase labor productivity and reduce risk in some production stages for workers.

As can be seen that the above investment, it has become a common trend by many Vietnamese enterprises with technology and equipment constantly changing. Especially when the Government of Vietnam has determined that enterprises are both the center and the driving force for the development of new technologies, intelligent industries and in commercialization and successful application of scientific and technological achievements into real life. Therefore, enterprises cannot stand outside, otherwise they will be backward technology and quickly leave the "play" in the market.

Therefore, in the past time, the authorities have many directions to promote the development of enterprises in the industrial revolution. For example, the Government's directive on strengthening the access to the 4th Industrial Revolution has required the improvement of the competitive business environment in order to promote the development of enterprises, creating conditions for enterprises in order to rapidly absort and develop new production technologies. Particularly, it must focus on promoting eco-innovation, start-ups, and guide the nation in the direction of building specific mechanisms and policies suitable to strongly develop innovative enterprises.

Create a "nipper"

Although understanding the importance of changing the technology of enterprises before the industrial revolution, but the problem is that Vietnam enterprises are still limited to be able to change, catch up with the trend. Especially when Vietnamese enterprises are mostly small and medium enterprises, so their financial capacity as well as management experience is lacking and weak.

In order to buy 2 precision mechanical manufacturing equipment, Mr.Ha Quyet Thang revealed that enterprises have to borrow up to 70% of the product value. But with a bank loan interest rate of 9.5% / year, the cost to a business increases quite a lot, so the company has to access funds from the “Small and Medium Enterprise Development Fund” (Ministry of Planning and Investment should get to 7% interest rate within 5 years). However, according to Mr.Thang, not all enterprises can access a cheap capital source. Banks and funds supporting enterprises only agree to capitalize when enterprises have prestige in business with a history of doing quality work.

In addition to the demand for capital, enterprises also need more support from management, but many businesses have not evaluated the effectiveness as expected. Having businesses reflect, 10 years ago, the People's Committee of HCM City had a policy to support 10% VAT for enterprises importing machinery and high technology. These devices are very expensive and 10% VAT base also is a great financial support; however, the replication of this model nationwide is still the desire of many enterprises. In addition, businesses also reflect on the lack of market information, trade; businesses are still tinkering to live.

Recently, the Government issued Decree 39/2018 / ND-CP regulating some articles of the Small and Medium Enterprises Promotion Law and Decree 38/2018 / ND-CP stipulating specifically on investment in small enterprises just starting up. Mrs. Hoang Thi Hong, Director of Small and Medium Enterprise Development Fund, said that this is the first time the legal framework for supporting small and medium enterprises has been promulgated under the law with very specific regulations for relevant agencies to promptly issue support mechanisms and criteria. Therefore, in the coming time, management agencies will identify the focus of support, build into specific programs. Typically, they will launch applications to support innovative enterprises on smart phones, help businesses to have easy access to connect with authorities ... to receive timely support policies.

Clearly, regulators are doing their utmost to help businesses innovate and improve their capacity to meet the demands of industrial revolutions. This is a necessity because international experience shows that behind a company there is always the Government with many forms of support, helping businesses develops sustainably and competitively in domestic and international markets. Therefore, when the management authorities find the right way; the company finds the right direction that will form a "nipper" for the development of the industry in Vietnam.

By Hương Dịu/Thanh Thuy