VCCI: Half a Century of Development

1:30:04 PM | 4/25/2012

On the occasion of 49th anniversary of the establishment of Vietnam Chamber of Commerce and Industry - VCCI (April 27, 1963), Vietnam Business Forum interviewed Mr Doan Ngoc Bong, who was the first VCCI Secretary General and First Vice-President on the establishment and development of VCCI. Do Son – Lan Anh report.
As a leader of VCCI in the early days, will you please tell us the main functions of VCCI in the initial stage?
On April 27, 1963, on behalf of the government, Prime Minister Pham Van Dong signed Decision 58-CP establishing the Chamber of Commerce of the Democratic Republic of Vietnam with the following functions and tasks:
1. Establishing relations with foreign trade and economic organisations and businesses; assisting related businesses of the Democratic Republic of Vietnam to develop relations and cooperation with foreign partners and vice versa.
2. Assisting Vietnamese and foreign partners in their promotion activities.
3. Granting certificates of origin to Vietnamese exports and verifying related documents of international trade at the requests of Vietnamese and foreign businesses.
4. Settling by negotiation or arbitration disputes occurred in the implementation of agreements at the request of concerned parties.
5. Organising exhibitions of Vietnamese products in foreign countries and foreign products in Vietnam; organizing and participating in international fairs and exhibitions.          
6. Publishing economic and trade bulletins and magazines and/or by other means to introduce to foreign countries Vietnam’s economy and export potential; providing Vietnamese businesses with information on foreign markets.
 
In the long process of development, what are the important milestones of VCCI?
In early days, implementing its functions and tasks, the Chamber maintained and expanded trade relations between Vietnam and other countries, especially those outside the socialist camp to meet the demand of import-export. Another important task was to expand economic cooperation with other countries, breaking loose trade embargo, promoting market surveys and international trade in preparation for full economic and trade activities in the future. The activities of the Chamber in the conditions of the war had contributed to the development of trade relations with outside world and set the foundation for partnership in later years.
After the reunification of the country, the activities of the Chamber were expanded nation-wide, not only in foreign trade but also in promoting industry for post-war economic development. Consequently, in early 1982, with the approval of the Prime Minister, the Chamber of Commerce was changed into Vietnam Chamber of Commerce and Industry (VCCI).   
      
In 1986, Doi Moi (Renovation) brought a new life to the economy and development opportunities for VCCI. With its background of cooperation with market economies, VCCI was one of the leading organisations in expanding foreign trade with markets of non-official diplomatic relations by that time such as the US, South Korea, Japan, Israel, Taiwan, etc.
 
In 1993, from an organisation under the supervision of Minister of Foreign Trade, VCCI became independent with two main functions: representing business community and advisory to the government; and promoting trade and investment. With additional capacity as a representative of business community, VCCI has gained an unprecedented development. As national organization representing Vietnam business community, VCCI has contributed its part in promoting of market mechanism in Vietnam, developing businesses and entrepreneurs, improving business and investment environment, and serving as the bridge between the State and businesses in joint efforts for national economic development.
 
With tireless efforts in the past years, VCCI has recorded brilliant successes and become the biggest organisation of trade and investment promotion in Vietnam, a companion of businesses, reliable partner of the government and important actor in regional and world economic integration.
Could you explain further on the functions and activities of VCCI?
As an advisory and consulting body to the Party and State on practical economic, trade and business activities, VCCI has recommended policies and macro-economic strategies as well as specific measures to remove business difficulties, accelerate reform and improve investment and business environment in Vietnam. VCCI has also participated in research and consulting bodies, working groups on policy making and implementation. In addition, it has organized regular meetings between the Prime Minister and related authorities with business community.
 
To promote trade, investment and business activities, VCCI has helped businesses improve their competitiveness and expand markets. Trade and investment programmes and projects have been launched including training, providing information, consultancy, business matchmaking, market survey, trade fair, arbitration, protection of intellectual property, certificates of origin, etc. Those activities have effectively assisted businesses in the process of international integration. VCCI has organised each year thousands of Vietnamese businesses to visit foreign countries and hundreds of foreign business delegations to visit Vietnam for market surveys and seeking investment and business opportunities, including business delegations accompanying Vietnamese leaders to visit other countries, and   meetings between Vietnamese businesses with foreign business delegations accompanying foreign leaders to visit Vietnam.
In preparation for regional and international integration, VCCI has sponsored many short-term and long-term training courses on world market and international law and practice for thousands of Vietnamese business people nation wide. It has also played an advisory role in law and policy-making process, business consultancy, sponsoring seminars and conferences to remove business constraints, expanding markets, organizing trade fairs at home and abroad, granting certificates of origin, etc. To increase efficiency in trade and investment promotion and science and technology cooperation, VCCI has participated in many international economic and business organisations to support and protect the interests of Vietnamese businesses. So far, it has maintained relations and cooperation with hundreds of regional and international organizations.
To improve its performance and meet the diversified and ever-increasing demand of business community and the economy, VCCI has focused on the development of human resources and facilities regarding it as the first priority.
As a result, from 130 staff members in 1993, the workforce has increased to over 1,000, young in age and 85 percent of graduates and post-graduates, educated at home and abroad, good at one or two foreign languages, and capable of meeting the demand.
Regarding facilities, from some 600 sq. metres of office space, VCCI has developed a network of trade and investment promotion centres of over 40,000 sq. metres with representative offices and branches in Haiphong, Ho Chi Minh City, Thanh Hoa, Nghe An, Da Nang, Vung Tau and Can Tho.
VCCI has also its website, local area network (LAN) and three newspapers to provide information and promote business connectivity.        
VCCI project “Development of Vietnamese entrepreneurs’ role in industrialization, modernization and international integration” has been approved by the Party Politburo and become Resolution 09/NQ-TW of December 9, 2011, how do you evaluate the Resolution?
Over 49 years since its establishment, for the first time, VCCI has been honoured by a Resolution supporting the development of businesses, entrepreneurs and VCCI itself. Resolution 09 is a breakthrough in perception honouring and promoting the role of Vietnamese businesses and entrepreneurs in economic development, national building and defence, and outlining solutions to develop Vietnamese business community in new conditions. Almost immediately after the issuance of the Resolution, Party General Secretary Nguyen Phu Trong had a working session with VCCI and representatives of business community to work out an action plan to implement the Resolution and reaffirm the support of the Party and State to the development of Vietnamese business community and entrepreneurs. It is an orientation of great importance to the development of Vietnamese business community in general and VCCI in particular.
What are lessons learned in 49 years of development?
 With achievements recorded in its development, especially in the period of Doi Moi (Renovation), VCCI has been awarded Labour Orders First Class and Third Class, Independence Order First Class, Ho Chi Minh Order and several Certificates of Merits to the organization and individuals. VCCI can be proud of its 49 years of development. The tradition and achievements are the result of joint efforts of all members of VCCI and lessons can be drawn are:
   - The success is, first of all, due to the unity and creativeness of VCCI Party Commission, Executive Committee, staff members and business members. The guideline of VCCI is to expand discussions with all related authorities and organizations to develop business community and improve business environment; thereby uniting businesses and business associations, building unity and democracy in defining VCCI orientation of activities. With unity and cohesion of the Management Board, VCCI Executive Board could focus on settlement of pressing issues with dynamism and innovation of each member and organization.
   - VCCI is an organization of dynamism and creativeness, daring to support the demand of businesses to define orientation and pursue renovation process. VCCI success in the past years was due to the correct orientation supporting businesses and economic development. VCCI has always kept in close touch with practical conditions to regulate strategy and find correct path of development.
   - Knowledge and creativeness of all VCCI members have been fully developed. Human factor has been most decisive in the development of VCCI. Therefore, VCCI must continue to develop human resources with high expertise, ethics, dynamism and creativeness to perform most efficiently its function in the years to come.
 
Regarding Vietnamese business community, the tasks in the new millennium are not only increasing business activities to make themselves and the society prosperous, contributing to poverty reduction, but also increasing competitiveness to attain fast and stable economic integration in the region and the world. To ensure successful economic transformation, we must solve a series of problems such as administrative reform, macro-economic management, infrastructure and human resources development, harmonious development of social welfare, etc. Working side by side and representing business community, VCCI is responsible and capable of performing its mission.
 
49 years of development, VCCI has established its prestige as the most important representative of Vietnamese business community. It is the pride and responsibility of each and every member of VCCI in the new millennium. With its tradition and development of infrastructure and human resources as well as direct leadership of the Party and State and close cooperation and support of business community and the society, no doubt, VCCI can make big strides forward and develop its glorious tradition in the years to come.