More Practical Business Support

This reality happens to some business associations as their operations are superficial. Hence, businesses lack interest in business associations. To cope with this and to strengthen member connectivity, associations must raise their roles and help businesses to solve difficulties.

 

Since its inception in 2006, HBA initiated and applied its operating principle of building an “internal market.” Its member companies are committed to giving priority to using products and services of each other. Accordingly, participating companies are providers, customers and partners of each other. The output of this company is the input of other one. With that objective, we have organised a lot of activities helping member businesses understand each other's products and services from which form an internal market, strengthen the position, and promote the prestige of the association in the business community. Previously, they did not pay attention to this market but, since their joining, their market expanded, even doubled. Previously, we met each other once every six months but we now meet every month to discuss measures to expand the "internal market."

 

We will continue to consider building the internal market as the operating principle in the new term from 2011 to 2016 in addition to the Politburo’s movement that encourages Vietnamese people to give priority to using Vietnamese goods first.

 

I think the VCCI has performed its roles well. For the first time in the 81-year history of the Communist Party of Vietnam, the Politburo’s Resolution 09 on building and promoting the roles of entrepreneurs in the new era in 2011 confirmed VCCI’s right direction in improving the position of businesses and entrepreneurs in the society and defining this as a core force in the country's economic development

 

The working meeting of Party General Secretary Nguyen Phu Trong on December 17, 2011 with the business community, hosted by VCCI, was a very practical activity to inspire businesses to expand business operations. On this occasion, HBA submitted shortcomings and difficulties businesses confronted like one-time land rent in lieu of previously yearly land tax payments. In response to this petition, Deputy Prime Minister Hoang Trung Hai said that it would guide ministries and branches to review and make an adjustment to this regulation, enabling businesses to choose land tax payment methods: one-time or annual payment. This is a very flexible approach of the Government in administering and resolving difficulties for enterprises.

 

Regarding domestic and foreign trade and investment promotion activities, VCCI needs to focus more on key markets for enterprises to orient their business plans. Currently, VCCI only organises exchanges and seminars for businesses to meet each other but these activities are not sufficient to catch the interest of many businesses. As a representative and intermediary for businesses and State agencies, VCCI must have a more powerful voice, especially in this difficult period. It essentially strives for enduring goals: Sending difficulties and problems facing businesses to the Government to create a fair, equitable production and business environment for enterprises and entrepreneurs; creating good conditions for private enterprises to have equal access to development resources, especially in projects implemented in the private - public partnership form; and stepping up the formation of powerful, outperforming and highly competitive enterprises. VCCI needs to continue proposing speedier administrative reform, especially administrative procedures for businesspeople and enterprises, upholding the responsibilities of State agencies, creating favourable conditions for businesspeople and enterprises to do business, and taking measures to protect businesspeople in the fight against negativity, corruption and profligacy.

 

Vietnam now has more than 2 million businesspeople and there is a sharp increase in both number and quality. And, under the management of this huge force, Vietnamese businesses are contributing to economic development and job creation, but Vietnamese businesspeople have not accumulated much capital, knowledge, technology, experience, and business tradition. The scale of Vietnamese businesses remains small in relation to those in the region and in the world. So, I think, each company needs to make an effort to self-improve and optimise its strengths, because the competitive pressures of integrating economically will not let us rest. For example, 5 years after joining the World Trade Organisation (WTO), Vietnamese enterprises have to pay painful lessons in pricing and brand loss in international markets. After 2015, up to 70 percent of Vietnam’s tariffs will be reduced or scrapped and competition will become increasingly fierce. This resolution demonstrated the highest political determination of the State and it will be institutionalised through better mechanisms and policies for businesses in the future. For their part, businesses more than ever need to add good strategic orientations to their development roadmaps, seize the opportunity for integration, and improve their skills in capital administration, human resources and organisation. By doing so, Vietnamese businesses can really earn their wings and fly.