Nghe An enterprises and open signals from supply - demand connection

(Baonghean) - Supply-demand connection is one of the activities that the Ministry of Industry and Trade has been strengthening to promote cooperation and information exchange, supporting business connections for development goals. Through this activity, many small and medium-sized enterprises have the opportunity to expand cooperation, link production and consume products. For this activity to be truly effective, it requires great efforts from each enterprise.

The participation of the industry and trade sector

In the past 3 years, Hanoi, Da Nang, Ho Chi Minh City and many other localities have actively organized many activities to connect supply and demand. These conferences are organized by the Industry and Trade Department of provinces and cities with businesses to create diverse activities such as: Information exchange, product introduction, signing of cooperation agreements on production and product consumption... This is also one of the important contents contributing to the effective implementation of the Project on developing the domestic market associated with the Campaign "Vietnamese people prioritize using Vietnamese goods" in the period of 2014-2020.

For Nghe An Department of Industry and Trade actively advises the Provincial People's Committee to issue policies and mechanisms to support enterprises in the province to participate in supply-demand connection activities. In 2016 alone, the Department of Industry and Trade organized for many enterprises to participate in supply-demand connection activities in Hanoi, Da Nang and Ho Chi Minh City.

Also in June 2016, Nghe An Department of Industry and Trade connected with businesses and An Giang Department of Industry and Trade organized the first trade exchange between businesses of the two localities in Vinh city.

Booths at the Supply-Demand Connection Conference in Da Nang 2016. Photo: Nguyen Son

Through this activity, businesses of the two localities directly exchange information, seek outlets for typical products of small and medium enterprises, cooperatives and households; create connections between managers, manufacturers and distributors, thereby building appropriate strategies, production orientation, forming a sustainable and effective production - supply chain.

With the success of this event, Nghe An Department of Industry and Trade aims to organize at least one trade exchange with provinces and cities across the country each year to create conditions for local businesses to expand trade, connect and develop production and business.

Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade added: In such activities, the Department of Industry and Trade plays a bridging role by inviting businesses in and outside the province to participate in connecting supply and demand.

But the effectiveness depends entirely on the ability of businesses to "negotiate" and sign cooperation agreements.

Requires great efforts from businesses

Mr. Vo Van Dai - Director of Van Phan Seafood Joint Stock Company is the person who participates in the most supply - demand connection activities among the leaders of small and medium enterprises in Nghe An. Mr. Dai participates in most of the business conferences and trade fairs in the northern provinces to introduce products, sign agreements to expand cooperation in production and supply of goods.

On each such trip, to save costs, he is both the director working with partners and also the transportation staff, introducing products and researching the market... According to Mr. Dai, at least each trip like that, the business has to spend about 10 million VND, of which the cost of renting booths in many provinces is from 5 - 7 million VND, in addition to travel expenses, accommodation...

Many products of Nghe An enterprises attract the interest of enterprises from other provinces. Photo: Nguyen Son

Due to the characteristics of small and medium enterprises in Nghe An, the production scale is not large, they are mainly family-owned enterprises and the products are still heavily localized, serving the province or the production source is small and seasonal, so not many enterprises are bold enough to participate in activities connecting supply and demand in other provinces.

Mr. Nguyen Van Son is the director of a company in Vinh city specializing in the production of turmeric starch. His company consists of only 2 people, his wife and 2 grandchildren. The turmeric raw material depends on the season, so the company's products are not large.

To save costs, he often chooses supply-demand connection trips with the Ministry of Industry and Trade as a bridge, in which booth rental is exempted. Mr. Son explained: “We produce on a small scale and depend on the season, sometimes the products are not enough for customers who have placed orders, so we have not promoted them to other provinces. In addition, the costs for supply-demand connection activities and out-of-province fairs are also expensive...”.

According to the analysis of Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade, most of the small and medium-sized enterprises in our province are mainly producing for consumption in the province. At the same time, many products with local traditional characteristics such as soy sauce, fish sauce, pickled vegetables... have not been strongly promoted for a long time, so the target users from other provinces are only concentrated on Nghe people living far from home.

In recent years, the good news is that many people from other provinces have prioritized using Nghe An products. This is an opportunity but requires businesses to constantly improve production processes, innovate product designs, improve quality as well as long-term product preservation methods...

At the same time, organizing more in-depth supply-demand connection activities in each production and business field will contribute to building an information system and database to serve businesses in the province and the whole country to link production and product distribution...

Nguyen Son