Hai Phong (VNA) – Localities in the northern key economic region haveconnected to create value chains to boost the entire region’s development.

The northern keyeconomic region comprises Hanoi, Hai Phong city and the provinces of QuangNinh, Hai Duong, Hung Yen, Bac Ninh and Vinh Phuc. It is Vietnam’s secondlargest economic region, accounting for 32 percent of the nation’s grossdomestic product (GDP) and 32 percent of total export turnover, and contributes31 percent to the State budget collection.

Deputy GeneralDirector of the Hanoi Trade Corporation (Hapro) Nguyen Tien Vuong said thatHapro, with rich experience in sustainable business strategy connectivity, isalways looking to expand its domestic sources of goods to serve its export anddomestic trade activities.

The corporation has cooperatedwith many businesses and units in other localities in the northern key economicregion and the Red River Delta region in order to create a system of sourcesand develop two-way goods distribution channels, Vuong said, adding thatHapro’s distribution network has expanded to all localities in the northern keyeconomic region.

Chairman of theQuang Ninh provincial People’s Committee Nguyen Van Thang said that connectivitybetween local authorities and local business associations aims to boostcooperation in production and consumption in the spirit of mutual support, thuscontributing to promoting the development of the whole region’s businesscommunity.

Director of theVietnam Chamber of Commerce and Industry – Hai Phong Chapter Phi Van Duc saidthat the reality shows that it is not possible to expect a breakthrough in labourproductivity, investment efficiency and competitiveness of the economy as wellas the business community without change. The advantage of cheap labour arefalling fast due to the impacts of the Fourth Industrial Revolution.

To make the region a main force for the nation’s growth, Duc highlighted the need for eachbusiness to exert effort and cooperate with others in the region. He alsosuggested the State strive to create a favourable business climate andintensify disseminations of laws and policies to help enterprises avoid risks.

Trinh Minh Anh, Chiefof the Inter-sectoral Steering Committee on International Economic Integration,said that participating in global and regional value chains requires enterprisesto improve their goverance skills.

Traditionalcompetition based on prices and quality must gradually shift to competitionbased on standards, size of orders, delivery time and distribution channels.Similarly, information and engagement with other businesses and strategicpartners was just as important as technological advancement, he added.

He suggesedenterprises seek business opportunities associated with the process ofinternational economic integration and new-generation Free Trade Agreements(FTAs).

It is essential tohave an understanding of languages, cultures and customs in partner countries inorder to integrate into regional and gloval value chains, he stressed, addingthat firms should be able to hold legal talks with the Vietnamese Government toreceive support when necessary./.