Abstract
The paper aims at analyzing general characteristics of the plastic sub-sector in Ho Chi Minh City (HCMC), in-depth quality assurance (QA) implication in the sub-sector, how plastic manufacturers use business development services to improve QA and which QA variables are strongly affected export involvement. Author’s survey had assessed to plastic manufacturers and service suppliers to determine the position of demand and supply, then find the potential improvement in BDS market for both demand and supply size. To recognize the attitude of plastic manufacturers in terms of QA awareness and identify the difficulties and weakness of service suppliers are formulated the general picture of QA in plastic sub-sector. The binominal logit model is used to assess the influence of explanatory variables, which are mainly concerned QA variables, on the probability that firm involve in international market. Our econometric analysis indicates that quality assurance level, automatic level, source of machine and ratio of quality assurance personnel are positively significant for the likelihood of international business. Interestingly, non-export group are likely to use quality assurance business development services rather than export group. QA business development services attract more concern for donors and government due to low value added for plastic exporters’ use.
Highlights
Vietnam has made numerous essential legal frameworks and institutional changes to establish favorable environment for small and medium enterprises (SMEs), especially the law on Enterprises in 2000 resulting 21,000 SMEs officially registered [1]
The survey of Swisscontact (SC) plastic industry in Ho Chi Minh City (HCMC) in 2002 showed that nearly 25 percent of the number of plastic manufacturers has directly exported to international market, appropriate to 29 percent of total plastic manufacturers that have indirectly exported to other sub-sectors and the rest exclusively supply for the domestic market
Dependent variable: EXPORT The model has 2 variables being significant at 3 percent level (AUTOLEVEL and Source of Machine (SOURMA)), three variables being significant at less than 8 percent level (QALEVEL, QARATIO and Number of Use QA BDS (NOQABDS))
Summary
Vietnam has made numerous essential legal frameworks and institutional changes to establish favorable environment for small and medium enterprises (SMEs), especially the law on Enterprises in 2000 resulting 21,000 SMEs officially registered [1]. A recent study of Mekong Project Development Facility (MPDF) and Vietnam’s Center for Economic Management found that SMEs face numerous obstacles such as unclear administrative procedures and problems with capital mobilization, land and construction permits, tax issues, investment incentives [1]. According to the report of the Ho Chi Minh City Plastic Association, Vietnam’s plastic industry has a high growth rate of 15 - 20 percent per annum over the past 10 years. The share of the total plastic output in Ho Chi Minh City (HCMC) goes up to 80 percent of the national plastic output. For SMEs, business development services (BDS) are considered as a lubricant in business performance. BDS is the most important tool to help SMEs access international market. The demand for outsourcing services is becoming valid and impacting process standards on quality assurance. International standard organization (ISO) 9000 is the most widely recognized international standard to date
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