1. Overview of the industrial chain structure

The industrial chain refers to all the links involved in the whole process from raw material procurement, product production, sales to final consumption. It is a network of interdependent and closely connected enterprises. A complete industrial chain usually includes upstream suppliers, midstream manufacturers and downstream customers. Enterprises in each link play a key role in the entire production and circulation process, and jointly promote the transformation of products from initial raw materials to final consumer goods.

In Vietnam’s industrial parks, enterprises in different industries will form a specific industrial chain structure. The efficient operation of these industrial chains is an important factor in improving industry competitiveness and economic benefits. Taking the electronics industry as an example, the industrial chain usually includes the following links:

• Upstream: Raw material suppliers and parts manufacturers are responsible for providing basic electronic components and materials, such as semiconductors, chips, circuit boards, etc. These materials and parts are the basis for the production of complete machines.
• Midstream: Complete machine manufacturers assemble and produce parts supplied by upstream to create final electronic products such as mobile phones, computers, etc.
• Downstream: Brand owners and e-commerce platforms bring these electronic products to the market and sell them to end consumers through multiple channels.

Another typical example of an industrial chain is the textile and clothing industry, whose industrial chain structure is as follows:

• Upstream: Yarn suppliers and fabric suppliers provide basic materials for making clothing, such as cotton yarn, polyester, silk, etc., which are processed into fabrics.
• Midstream: Clothing manufacturers use these fabrics for design and production, processing them into finished garments.
• Downstream: Brands, wholesalers and retailers are responsible for bringing finished garments to market and ultimately to consumers through retail channels.

In Vietnam’s industrial parks, the establishment and improvement of these industrial chain structures can promote the improvement of the overall efficiency of the industry, promote economic development and enhance the competitiveness of enterprises. Through upstream and downstream collaboration, enterprises can not only reduce costs, but also respond quickly to market demand and form more competitive products and services.

2. Industry chain visualization tool function

The Industrial Chain Visualization Tool is a powerful tool designed for investors and enterprises to help them better understand and analyze the industrial chain structure of various industries in the park. The tool provides a variety of functions to support enterprises’ strategic decision-making and business development in the park:

Comprehensively understand the industrial chain structure of various industries in the park:

Through the visualization tool, users can clearly see the complete industrial chain of different industries, from raw material suppliers to final product sales. The tool intuitively presents each enterprise in the industrial chain and their mutual relationships, helping users quickly grasp the overall picture of the industry.

Identify potential suppliers, customers and partners:

The tool can help companies identify key players in the industry chain, such as potential suppliers, customers and partners. Through detailed analysis of upstream and downstream companies, users can discover potential business cooperation opportunities and enhance the resilience and competitiveness of the supply chain.

Discover opportunities and challenges in the industry chain:

Industrial chain visualization tools can reveal possible bottlenecks, risks, and untapped market opportunities in the industrial chain. Enterprises can use this information to conduct in-depth analysis, foresee and respond to possible challenges, while seizing new growth points and optimizing resource allocation and business strategies.

Formulate targeted industrial development strategies:

With the detailed data and analysis provided by this tool, companies and investors can formulate more precise industrial development strategies. Whether entering new markets, expanding product lines, or optimizing supply chain management, the industrial chain visualization tool can provide data support and strategic suggestions, making the decision-making process more scientific and effective.

3. Display of industrial chain structure

The following takes the electronics industry in Hanoi Industrial Park as an example to show its industrial chain structure:

graph TD

A[Raw material supplier] –> B[Component manufacturer]

B –> C[machine manufacturer]

C –> D[Brand]

C –> E[E-commerce platform]

As can be seen from the above figure, the industrial chain structure of the electronics industry in Hanoi Industrial Park is divided into three main parts: upstream, midstream and downstream:

• Upstream: Mainly includes raw material suppliers and parts manufacturers. These companies provide key electronic components and basic materials such as semiconductors, chips, circuit boards, etc. to the midstream.
• Midstream: It is composed of complete machine manufacturers, who are responsible for assembling the components and raw materials provided by the upstream into final electronic products, such as mobile phones, computers, etc. These complete machine manufacturers are a vital link in the industrial chain, and are responsible for converting raw materials into finished products.

• Downstream: including brand owners and e-commerce platforms, which are responsible for bringing electronic products produced by whole-machine manufacturers to the market. Brand owners enhance the market influence of their products through marketing and brand building; e-commerce platforms provide a wide range of sales channels, allowing products to quickly reach consumers.

In this industrial chain structure, the whole machine manufacturers in the park can improve production efficiency and product quality by establishing long-term and stable supply relationships with upstream component manufacturers. At the same time, they can also cooperate with downstream brand owners and e-commerce platforms to expand market coverage and sales channels. This kind of close cooperation between upstream and downstream industrial chains will help improve the competitiveness and market response speed of the entire park’s electronics industry.

4. Identification of potential partners

By analyzing the industrial chain structure, investors and companies can more accurately identify potential suppliers, customers and partners. This analysis can help companies optimize their supply chains, expand their markets and improve their overall competitiveness. The following is a specific identification of the electronics industry in Hanoi Industrial Park:

Upstream suppliers:

In the electronics industry in Hanoi Industrial Park, upstream suppliers play a vital role. Electronic component suppliers provide core electronic components such as semiconductor chips, capacitors and resistors to complete machine manufacturers. These raw materials are the basis for the production of electronic products. Plastic product suppliers are responsible for providing plastic materials used to manufacture electronic product shells and internal components. These materials not only determine the appearance of the product, but also affect its function and durability. In addition, packaging material suppliers provide guarantees for the safe transportation and storage of products. The materials they supply, such as anti-static bags, cartons and foam packaging, ensure the integrity and safety of electronic products throughout the entire logistics process.

Potential Customers:

In the electronics industry chain of Hanoi Industrial Park, potential customers mainly include well-known domestic and foreign electronic brands and large e-commerce platforms. Well-known electronic brands, such as large mobile phone and computer manufacturers, are important customers of complete machine manufacturers. Through cooperation with these brands, complete machine manufacturers can significantly expand their market share and enhance the market awareness of their products. On the other hand, large e-commerce platforms such as Amazon and Alibaba provide opportunities to directly contact end consumers, which not only opens up more sales channels, but also significantly improves the market coverage of products, enabling manufacturers to quickly respond to market demand and expand sales networks.

Partners:

In the electronics industry chain of Hanoi Industrial Park, potential partners include companies in the same industry, scientific research institutes and logistics companies. Establishing strategic alliances with other electronic product manufacturers can achieve the sharing of production technology, market resources and supply chain channels, thereby reducing production costs and enhancing market competitiveness, especially when dealing with technological challenges and market fluctuations. This kind of cooperation is particularly important. Scientific research institutes are another key partner. Through industry-university-research cooperation with scientific research institutions and universities, companies can enhance their technology research and development capabilities, promote new product development, and maintain a leading position in technological innovation. Finally, establishing long-term cooperative relationships with reliable logistics companies can ensure the timely supply of raw materials and efficient distribution of products, which is crucial to maintaining production continuity and quickly responding to market demand.

5. Analysis of industry chain development trends

Through in-depth analysis of the industrial chain structure, investors and enterprises can predict the development trend of the industrial chain and formulate corresponding strategic plans. Taking the electronics industry in Hanoi Industrial Park as an example, the following is an analysis of its future development trends:

In terms of upstream suppliers, as the electronic manufacturing industry in the park continues to grow, the number and quality of upstream suppliers will be significantly improved. More local suppliers will emerge to form a more complete and stable supply chain, which will help reduce costs and improve the efficiency of raw material supply. At the same time, suppliers will gradually improve their technical level and provide higher quality parts and materials to meet increasingly complex production needs.

The whole machine manufacturers in the midstream will show a trend towards high-end manufacturing and customization. As the global electronic product market’s demand for personalization and high quality increases, whole machine manufacturers will pay more attention to increasing product added value and developing competitive high-end products. In addition, the cooperation between manufacturers in the park will be further strengthened, and production efficiency will be maximized through resource integration and technology sharing.

In terms of downstream customers, well-known domestic and foreign brands and e-commerce platforms will continue to increase their investment in Vietnam, especially in the layout of Hanoi Industrial Park, which will drive the rapid development of the entire electronics industry. Brands will rely more on the capabilities and efficiency of local manufacturers, while the expansion of e-commerce platforms will provide manufacturers with a wider market and consumer groups, further promoting the sales growth and market coverage of electronic products.

Overall, the electronics industry chain in Hanoi Industrial Park will develop in a more integrated, efficient and international direction, which provides good development opportunities for investors and enterprises, but also requires them to constantly adapt to changes and formulate flexible strategies to maintain competitive advantages.

6. Case Analysis

An electronics manufacturing company set up a production plant in Hanoi Industrial Park. By using the industry chain visualization tool, the company was able to effectively use this platform to conduct a comprehensive industry chain analysis and formulate corresponding strategies for its development.

First, the company can fully understand the industrial chain structure of the electronics industry in the park, so as to accurately position itself for development. Through detailed analysis of upstream suppliers, midstream manufacturers and downstream customers, the company can clarify its role in the industrial chain, adjust its products and services according to market demand, and enhance its competitiveness.

Secondly, the tool helps the company identify potential parts suppliers so that it can establish a stable supply relationship. By analyzing the quality and capabilities of upstream suppliers in the park, the company is able to select the most suitable supplier, ensure the quality of raw materials and the stability of the supply chain, thereby optimizing production efficiency and cost management.

In addition, enterprises can also use this tool to cooperate with other manufacturers in the park and share resources. Through strategic alliances with companies in the same industry, enterprises can achieve synergies in technology research and development, market development and supply chain management, and further enhance their competitive advantages in the market.

Finally, the company can use this tool to negotiate cooperation with well-known domestic and foreign brands to expand sales channels. By analyzing downstream customers, the company can find brands that best match its products and market positioning, and use the market influence and channel resources of these brands to promote its products to a wider market and further expand its market share.

In short, through the industrial chain visualization tool, this electronic manufacturing company can effectively integrate various resources within the park and formulate scientific development strategies, thereby maintaining its leading position in the highly competitive market.