EM – The campaign “Vietnamese people prioritize using Vietnamese products ” was first launched in 2009, after the 2007 – 2008 global financial crisis . However, hitherto, Vietnamese consumers still lack confidence in domestic products, what are the reasons for this?
Vietnam’s elevator market is becoming more and more bustling, but consists mainly of foreign enterprises or businesses that distribute imported products. The challenges for domestic elevators are still largely neglected: the technology is not leading but mainly “follows” the products of advanced countries, the source of raw materials for domestic production is limited, the source of imported raw material has not been strictly regulated, many “unofficial” importing paths still exist despite regulations, etc.
It is these difficulties that are causing consumers to not have much faith in the market. The promotional information from businesses struggles to convince and prove to their customers of their product quality, even for “official” import and export enterprises..
In terms of the Government: Current regulations of the Government only regulate 6 types of safety devices (Landing door and cabin door lock, Safety brake unit, Overspeed governor, Buffer, Rupture valve/check valve) before it is used. Who is the agency authorized by the government to assist customers in ensuring that other components are reliable to use?
In terms of domestic manufacturers: The domestic manufacturer is unprofessional; the quality is not verified. Customers cannot have access to quality components. Who can help customers in accessing reliable components?
In terms of foreign suppliers: There are many foreign suppliers operating in Vietnam, including a large percentage of suppliers of products that have not been verified for quality. Who is a reliable supplier? Who can help customers connect with trusted foreign suppliers?
In terms of Vietnamese customers: Worried about the quality of components being sold in the market: Has the quality been confirmed, is it good, is it always stable? In the event of an accident, who will provide technical support to the user? Who can assist customers in answering these questions?
Only when all four aspects above are put into consideration, when a proposed solution can solve all four of these painful problems, then the problem of establishing trust in the market can be resolved.
Since its establishment in 2020, the Vietnam Elevator Association (VNEA) has always been preoccupied withits mission and responsibility in the Vietnamese elevator markets. In which, VNEA faces the following challenges in 4 aspects of the supply of components and equipment:
Regarding the government: VNEA is one of the authorized agencies of the government and VNEA needs to support customers to ensure that the devices sold are as reliable as possible, and orient the elevator market towards increased transparency.
Regarding domestic manufacturers: VNEA needs to research and receive transference of production technology from reliable foreign suppliers to help improve domestic production capacity alongside supporting the development of domestic elevator enterprises in a sustainable way.
Regarding foreign suppliers: VNEA needs to choose reliable foreign suppliers and support their operation in Vietnam.
Regarding Vietnamese customers: VNEA needs to ensure that the tested equipment meets technical regulations and quality standards. Testing is performed by an authorized government agency or by a reputable 3rd party, and in that case, VNEA should provide technical support when necessary.
Approaching the urgent issue of ensuring a reliable supply of components and equipment, Vietnam Elevator Association recognized the need to establish a unit capable of evaluating equipment quality, reputation of the enterprise. Furthermore, such unit needs to be able to sponsor, connect and promote trade between enterprises supplying international components and equipment to the Vietnamese market. From then on, VNEA has built an ecosystem for manufacturing and supplying elevator products with a guarantee “from the beginning”: a reliable supply chain.
Reliable Supply Chain Group (RSCG) is one of VNEA’s projects in line with VNEA’s mission and purpose:
– Ensuring safety for elevator users
– Contributing to the construction and socio-economic development of Vietnam
Accordingly, RSCG is a platform where foreign suppliers and Vietnamese customers can connect and cooperate with each other, under the support of VNEA for the purposes of:
1. Helping Vietnamese customers connect & cooperate with reliable suppliers… and vice versa.
2. Helping Vietnamese customers access products of accurate origin and good quality.
3. RSCG members work together to establish an auxiliary equipment manufacturing group in Vietnam to move towards being able to manufacture complete elevators for the Vietnamese market and export at competitive costs.
RSCG is the platform for VNEA to connect foreign suppliers and manufacturing enterprises in Vietnam
Members of RSCG are individuals and organizations that manufacture and supply components, equipment and technology that wish to supply ỏ for the Vietnamese market. Accordingly, for each group of components, equipment and technology, RSCG will select 3-5 suppliers from different countries to ensure the quality criteria. The number of suppliers is limited to a small number to help VNEA easily support and best focus on consulting information to customers.
The formation of this reliable supply chain aims to make it easier for foreign components and equipment suppliers to access the Vietnamese market. Additionally, enhanced reliability of the supply chain will also aid domestic manufacturing enterprises in having direct access to reliable supplier of resources, guaranteed source of purchasing products (accurate origin, manufacturer,… authenticated by QR code stamps from the Vietnam Institute of Lift Engineering Application), quick purchasing time (in the case of the suppliers having equipment warehouses in Vietnam), receiving rapid technical support from VNEA in case of service interruption from foreign suppliers, etc. Above all, the main beneficiaries are customers who use elevators and the safety of the whole society.
On this basis, we will gradually gather a cluster of auxiliary businesses to assemble and manufacture elevators for export instead of having to import “everything” from abroad. The reliable supply chain has been established by the Vietnam Elevator Association, which is expected to become a project that meets the needs of the elevator market, maximizes the strength of the ecosystem, cooperates with other functional units of VNEA such as Vietnam Institute of Lift Engineering Application, Trade Promotion Center, Emergency Rescue Center,… in carrying out the mission set out by the Vietnam Elevator Association.
