Solutions to Harness Positive Spill Impacts and Limit Impacts

Inspection and post-inspection of foreign direct investment enterprises

This viewpoint aims to rectify FDI activities.

create favorable conditions for the positive spillover effects of FDI to appear.

In the context of FDI inflows into Vietnam having many shortcomings that need to be corrected, Vietnam needs to refocus its FDI attraction strategy and monitor operations more closely . FDI attraction strategies must be closely linked to monitoring and handling during implementation.

Maybe you are interested!

The production and business activities of FDI enterprises will be monitored more closely, by tightening the management of FDI enterprises, having regulations on coordinating State management activities on FDI and regulations on inspection, supervision and evaluation of investment in compliance with legal regulations on granting investment certificates and implementing projects . At the same time, the State also has measures to improve the efficiency of managing FDI capital flows, especially focusing on managing inflows and outflows. In addition, it is necessary to reorganize State management activities on FDI and anti-transfer pricing activities of FDI enterprises.

3.3. Solutions to exploit positive spillover effects and limit impacts

Negative spillover of foreign direct investment to textile enterprises

Vietnam sewing

3.3.1. Group of solutions to take advantage of positive spillover effects

3.3.1.1. Receiving and promoting investment in developing human resources in the Textile and Garment sector

Human resources are considered a decisive factor to take advantage of and exploit the positive spillover effects of FDI on Vietnamese textile enterprises . Therefore , improving the quality of human resources in terms of physical strength, intelligence and skills is an urgent requirement for Vietnamese textile enterprises in the context of increasingly fierce competition in both domestic and international markets. Training and improving skills for workers, improving management skills and foreign language proficiency for managers in textile enterprises need to implement the following solutions:

a) Clearly define the training content of human resources in the Textile and Garment industry

Training content for human resources in the Textile and Garment industry needs to include technical skills .

technical and soft skills in the fields of management, design and product development,

Market research. The training program should address the following:

- Technical training : At the professional level, training centers are important through providing trained human resources, productivity management, and optimal use of available capabilities : opening training courses on product design and development, knowledge of raw material and product standards, environmental and labor standards. Supplementing university -level human resource training , reviewing training program designs to be closer to reality ; updating knowledge and aiming at training contents of countries with developed fashion industry and trade in North America, Western Europe, Japan, Korea, etc.

- Training in management and administration : Professional skills in the textile industry need to be developed not only in technical skills but also in management skills such as: production management assessment, productivity improvement techniques, marketing, pricing and cost calculation, specialized English, factory organization, competitiveness assessment, strategic management, textile and garment sales experts. For managers at all levels, both in economics and technology, it is necessary to regularly organize training and professional testing. There are clear standards for management titles and professions . Those who do not meet the requirements need to be removed from management positions. Enterprises need to regularly organize visits and learn from typical enterprises in the industry, good management models of joint ventures, including good management models abroad .

- Vocational training : Vocational training not only supports the acquisition of new techniques in spinning, weaving, knitting, printing and dyeing, but also strengthens creativity in product design , cutting and sewing. Supervision of these vocational training and teaching programs will meet the needs of the textile industry, in order to coordinate resources and teaching programs. For workers, the labor force that directly creates surplus value of production, attention should be paid to continuously improve their skills , meeting the increasing demands of the domestic and foreign markets.

- Training organization for Trainee Administrators : Implementing the strategy of transferring the enterprise to

rural areas to minimize labor fluctuations in enterprises. Regularly organize Management Trainee programs with the aim of training source staff in both management and technical fields for enterprises right in rural areas.

b) Determine the form of training and human resource development

Combine long-term training with short-term training, formal training with on-site training, domestic training with sending staff abroad for training.

- On-the-job training : Workers in enterprises can both work and learn, with good engineers tutoring them during their work. This form has a short training time, low cost, and workers can still improve their skills and learn new techniques. However, the limitation of this form is that workers are trained unsystematically, not fundamentally, the number of trained workers is small and is only suitable when enterprises urgently need workers to meet the requirements of technological innovation while the training fund is limited.

- Organize short-term training courses taught by domestic and foreign engineers and experts for skilled workers at enterprises to improve their qualifications and update information on new technologies.

- Sending workers to formal schools for training . This form requires high costs, but the knowledge provided is very systematic, creating conditions for skilled workers to develop in the future .

- Cooperate with international organizations to send staff and students to participate in training courses for managers, technical staff, sales staff , and highly skilled technical workers at training facilities abroad .

c) Building a training program for textile human resources

- Research and develop training programs that are suitable for the characteristics of human resources in the Textile and Garment industry and are calculated from two sides: the training and development plan of the enterprise and the training facility system that is capable of meeting the requirements of the enterprise. Each Textile and Garment enterprise proactively develops a plan for training and developing human resources. The evaluation of the effectiveness of training and developing human resources should be considered as the evaluation of the effectiveness of investment projects, helping enterprises boldly spend investment costs on training and developing human resources.

In addition, enterprises can use financial leverage to encourage and stimulate staff and workers to improve their skills, while improving the quality of input recruitment .

- Innovating training objectives and programs to ensure requirements: balance in the structure of subjects, focusing on subjects suitable for the training major; closely combining basic theoretical equipment with practical skills at all training levels, taking practical skills as the focus in training technical workers. Combining long -term training with short-term training, between formal training with on-site training, between domestic training and sending staff abroad for training...

- Regularly maintain training courses for college, intermediate level, technical workers through the system of professional schools of the Textile and Garment industry to provide enough human resources for the industry. VITAS and VINATEX are the focal points for coordination and connection with domestic and foreign training institutions to implement the Human Resources Training Program for the industry. In addition, VINATEX, Textile Institute, Fadin Institute... need to have new training coordination programs and additional training for staff of the Textile and Garment industry. On the other hand, VITAS with the ASEAN + 3 program of AFTEX also promotes the establishment of many training programs for staff of the Textile and Garment industry, including domestic and foreign training.

- There needs to be a mechanism to monitor teaching quality at all levels of education , because this is the cradle of training and directly affects the quality of human resources in the industry. To do so, the State needs to set strict standards on facilities, teaching and learning equipment as well as the qualifications of the teaching staff .

d) Strengthen and develop the system of schools and human resource training centers

for textile industry

- Continue to strengthen vocational schools in the system, coordinate with universities that train textile and garment industry to provide in-depth training in technology. Ensure the balance between training levels, especially focus on developing schools and centers for training technical workers in areas with concentrated textile and garment industry development (Northern Delta , Southeast and Central Coast ) .

- Strengthen research institutes to perfect technological processes and production management, supplement human resources for effective operation of institutes; conduct training for fashion designers to form design centers and build high-end fashion brands.

- Increase investment in technical equipment for schools and training centers, consolidate and expand the Textile and Garment training system, build the Textile and Fashion University to create facilities for implementing training courses. This is one of the essential conditions to improve training quality and improve practical skills of trained human resources.

- Improve the qualifications of the teaching staff. The teaching staff must have a firm grasp of basic theoretical knowledge, be able to update themselves with modern professional knowledge, and have practical guidance skills. In the fashion design industry, foreign experts can be invited to work periodically at schools and training centers.

- Increase investment in the professional education and training system, especially investment in vocational training. Consider the construction and completion of the vocational training system as one of the important goals for sustainable economic development, especially in rural areas in the context of labor leaving the agricultural sector to work in other fields will continue to occur strongly because the agricultural land area will be narrowed along with the industrialization - modernization and urbanization process of Vietnam.

e) Expand training cooperation between textile and garment enterprises and schools,

human resource training centers for textile industry

- Textile and Garment Enterprises proactively propose needs ( in terms of quantity, quality structure and time ), provide practice locations and take partial financial responsibility for the training process.

- Schools and human resource training centers proactively go to textile and garment enterprises to learn about their needs, innovate training programs and content to suit human resource requirements, and ensure training quality as required.

- Implement socialization of education and training, diversify training types to suit market needs , encourage forms of cooperation between the State and the private sector.

and private sector in human resource training, especially cooperation between training institutions and enterprises, creates competition between state and private training institutions, thereby forcing schools to innovate and improve the quality of teaching and learning to meet market demands . To do that, the State needs to create conditions to make it easier to open schools, and encourage domestic and foreign units to participate in the education market.

- In the long term, in parallel with the sustainable development of the Textile and Garment industry, we will aim to build a sustainable linkage model between Textile and Garment enterprises and training facilities . That linkage must solve problems such as: ensuring sustainable training activities of training facilities; ensuring sustainable business activities of enterprises through having human resources that meet requirements; linkages that are in accordance with the law and society, contributing to social stability; satisfying the needs of learners and workers so that they can stick with the Textile and Garment industry for a long time.

3.3.1.2. Receiving and increasing investment in science and technology development,

Improve the quality of technology transfer and management level

This solution is established to improve the efficiency of technology transfer, taking advantage of the spillover effect of technology from FDI enterprises to Vietnamese textile and garment enterprises. Improving the level of technological equipment along with improving the quality of human resources are basic conditions to improve the ability to absorb spillover effects from FDI of Vietnamese textile and garment enterprises.

a) Domestic enterprises must focus on investing in research and technological innovation.

- Ensuring synchronization in the technological chain : In selecting equipment and technology, it is necessary to take into account the synchronization between existing technology and newly invested technology or the synchronization between newly invested technological chains.

- Ensure consistency in technological innovation between Textile and Garment : In selecting equipment and technology, it is necessary to focus on investing heavily in purchasing modern machinery and equipment for the Textile industry. In addition , it is necessary to have a reasonable policy for training technological human resources and developing information so that technological innovation is highly effective.

- Depending on the requirements of the product and the market to choose the technology .

For textile and garment enterprises, producing quality products with average designs, choosing Chinese technology is enough to meet market demands. As for enterprises producing high-end products, they should import high-tech production lines from Japan, the US, Western Europe... Doing so will both meet market demands and suit the financial capacity of the enterprise.

- Choose relatively modern technology to avoid becoming obsolete in a short period of time . To choose the appropriate technology, enterprises must evaluate the newly adopted technology based on 4 basic contents: (i) the operating capacity of the technology ;

(ii) the effectiveness of technology; (iii) the level of technology and technique; and (iv) the impact of technology on the ecological environment and the socio-cultural environment of the enterprise. On the basis of determining the level of investment capital for new technology and the capital mobilized to purchase, operate and manage that new technology in the most effective way.

- Investment in technological innovation must be consistent with the task requirements as well as the financial situation of the enterprise, combined with review, inspection and re-evaluation of all machinery and equipment . The technological level must be consistent with the skills of the workers to avoid waste and inefficiency. In addition, focus on improving technology in depth, increasing exchanges with customers about ideas to have technological preparations to produce products that fully meet the needs of partners ordering processing, bringing satisfaction to customers.

b) Combining the use of various technologies

- Enterprises must have a good combination between purchasing modern , highly automated technological lines to meet the increasing demands of the market with technological lines that use a lot of labor . Enterprises must invest in renewing modern technological lines to meet the demands of the market, especially the export market. On the other hand, some enterprises need to continue to maintain technological lines that use a lot of labor to take advantage of cheap labor costs and low training costs to adapt to new technology, and thereby, both maintain jobs for a large number of unskilled workers, contribute to solving social problems, and create products to meet the needs of domestic and foreign markets . Therefore , Textile and Garment Enterprises

You need to carefully consider the following issues before deciding to buy.

- Purchasing needs to be done reasonably to avoid waste. Enterprises determine the level of technology they want to buy, based on the conditions of each supplier and the actual capacity of the enterprise to choose the best supplier. Repair and improve old equipment that can still be used, continue to put it into the production line to avoid unnecessary waste.

- When purchasing new technology, businesses need to pay attention to technology transfer, instructions on using new technology and warranty. Businesses need to clearly understand the uses and operating procedures to maximize the value of technology.

- Encourage enterprises to conduct their own research, inventions or cooperate with domestic scientific agencies; form joint ventures and partnerships with other domestic and foreign enterprises; hire foreign experts... This will greatly reduce costs compared to purchasing complete technology.

c) Strengthening the capacity of domestic textile and garment enterprises to receive new technology

To take advantage of and exploit the spillover effects of FDI, improving the receptive capacity of enterprises and of each individual as well as each working group is a very important factor . To achieve the effectiveness of technology transfer , domestic textile and garment enterprises need to implement the following solutions:

- Members of the enterprise must have the ability to perceive and absorb knowledge and technology . The absorption and learning of each individual is related to the continuous search for new information, especially technological information related to the production and business fields of the enterprise. The combination of collected information with internal knowledge capacity will bring opportunities to receive new technology to serve real production and business. When the enterprise does not accept change and does not have the ability to learn, the transferred knowledge and technology will not be received and effectively promoted.

- Transforming technology into basic processes and procedures in the daily operations of the enterprise . Technological knowledge must be transformed into skills and know-how of each individual, each group of workers and the enterprise as a whole. The transfer of knowledge and technology from individuals to enterprises occurs precisely when groups of workers

Comment