IT Application: Key to Success in Time of Crisis

In a bid to support small and medium enterprises (SMEs) in Vietnam find the best information technology (IT) application solutions for their scope of production and management, the Vietnam Chamber of Commerce and Industry (VCCI) and HP Company jointly organised a workshop titled “E-company - Key to success in time of crisis” in Hanoi.

 

This event was part of the Project "IT-powered governance skill improvement programme for Vietnamese SMEs in the 2011-2013 period" carried out by VCCI.

 

Mr Hoang Van Dung, Vice President of VCCI, said given current economic context, the year 2013 is considered a turning point for businesses. Smart, well-managed companies will go to the forefront if they know to change and grasp technological advantages. To optimise their production efficiency, all businesses must restructure their operations to optimise workflows and reduce costs.

 

In order to introduce smart business models and solutions, Ms Pham Thi Mai Huong, a representative of HP Vietnam, stressed enormous Internet development and IT investment helped enterprises to reduce costs and enhance efficiency. IT investment must be efficient, cost-effective, secure and supportive to operations of companies.

 

Mr Tong Cong Phi, an official from the Tax Policy Department under the Ministry of Finance, noted that businesses need to clearly understand new tax policies last year and their impacts on business operations to settle taxes in 2012.

 

He added that business leaders need to review what their businesses have done when new regulations take effect and find out their shortcomings to new regulations. They also need to prepare settlement plans if problems occur and their companies are fined for violations and wrongdoings. In addition, they need to review economic contracts with suppliers and sales partners to identify works completed and works in progress to work out directions in 2013, compare financial data, documents, and invoices appended to contracts, etc.

 

Economist Pham Chi Lan said, in 2012, the number of corporate bankruptcies hit the record of nearly 54,000 units, raising the number of bankruptcies in 2011 and 2012 to more than 107,000 units, equalling the number of corporate liquidations in 12 years ago earlier. Operating companies also have to scale down their capacity.

 

She added that enterprises will still meet with difficulties in 2013. Specifically, inflation remains high in nature and easing of fiscal and monetary policy may result in the return of inflation. Foreign exchange reserves have been added but the value remains low in relation with the world. Asset quality of credit institutions worsens, public debts pile up if local debt is added. Besides, the slow restructuring process, which also includes the settlement of bad debts at banks and state-owned enterprises, is jamming a brake on long-term growth potential of Vietnam.

 

She also added that the Government will focus on macroeconomic stability and inflation control in order to reduce interest rates, lower personal income tax and corporate income tax, and consider VAT cut in 2013.

These policies will be opportunities but they are also challenges to enterprises because they have to change to adapt new context. However, with limited resources, the trust among businesses, between businesses and banks, and businesses and the government is low, overcoming this tough time is not simple at all.