The fifth term of the Vietnam Chamber of Commerce and Industry - VCCI (2009-2013) witnessed huge difficulties and challenges weighing on businesses. Looking back on the past five-year term, VCCI has a mix of pride in its achievements as well as concern over work still incomplete. The upcoming sixth term of VCCI will see the formation of the ASEAN Economic Community (AEC) and the process of deeper international economic integration, both of which entail numerous opportunities as well as challenges. What directions will VCCI go and what programmes will VCCI adopt? Vietnam Business Forum interviewed Mr Vo Sy Luc, Member of VCCI Executive Board and President of Vietnam Rubber Group (VRG), on this issue. Hoang My reports.
From the perspective of a business leader, how do you evaluate VCCI’s role of "uniting" and "connecting", as well as in business support, during the past term?
To support and protect businesses to contribute to national socio-economic development, promote cooperation in economy, trade, science and technology between Vietnam and other countries on the basis of equality and mutual benefit, VCCI now has more than 10,000 members, including official members, and hundreds of thousands of media members, honorary members and associated members. This proves that VCCI has gradually asserted its position in the process of international integration. In the current context of economic slowdown, with a close watch on business situations and opportune opinions from enterprises, VCCI has captured, reflected and proposed the Government and relevant agencies to reconsider and constitute a clear legal framework for businesses, supporting the development and integration of the business community.
VCCI has signed a cooperation agreement with VPBank to support small and medium enterprises (SMEs). VCCI sees that SMEs may become the growth engine for Vietnam's economy in the coming years. But, they are now primarily self-reliant and do not receive satisfactory policy support from the Government. Serving as a bridge, VCCI facilitates SMEs and even micro-businesses to show their capacity through credit support programmes.
As the Member of the VCCI Executive Board of the 5th term, how do you assess the development of the Vietnamese business community today? What are the weaknesses of the Vietnamese business community as it deepens international economic integration, and how can these be addressed?
The business community is now facing plenty of difficulties. The number of businesses has increased significantly recently, but their scale and brand are limited. The private sector is not financially strong, leading to fragmented development. Most companies operate in cost-intensive and labour-intensive fields with limited high tech application. The competitiveness of the State business sector is still weak. One major problem is increasing production costs based on higher input costs and prime costs. Besides, weakening purchasing power results in shrinking consumption market - one of the common problems of the business community.
Currently, common weaknesses of domestic businesses are low economic development level and capacity, and weak competition against both domestic and foreign rivals. To integrate effectively, Vietnam must strive to strengthen internal resources, and reform and adjust mechanisms, policies, laws, business practices and economic structure to match international common rules. Internal reform determines the speed and effectiveness of integration. Integration will support and promote the reform process of the country, thus helping enhance the competitiveness of the economy. The economy and business community are entering a new stage of development where restructuring is required. Moving up to a modern and sustainable structure becomes vital.
What are Vietnam Rubber Group’s development strategies to get through hardships?
Vietnam Rubber Group is performing its restructuring and divesting from non-core businesses to focus resources, particularly finances, on major objectives and create a strong position in relation with foreign partners. In addition, the group is reshuffling its organisational apparatus and business lines.
By 2015, the group will settle all non-core investment projects to concentrate resources on core business lines and industrial products. The group will particularly do the following tasks.
Firstly, maintaining and developing its position as a leading agricultural economic group of the nation with a variety of agricultural products in order to become one of leading agricultural economic groups in the region and the world.
Secondly, effectively implementing the agriculture and countryside development programme, developing technical infrastructure, employing ethnic minority labourers, enhancing productivity, and increasing incomes for labourers; harmoniously combining economic development with political, security and defence tasks.
Thirdly, increasing scientific and technological content in products, improving added value in production chains; increasing the value percentage of industrial products and services within the group.
Fourthly, continuing the ownership diversification policy by accelerating privatisation to enhance corporate governance, business efficiency and capital sources for expansion.
Do you have any opinions that would help VCCI have more practical and effective activities for the Vietnamese business community in the next term?
The image of State-owned enterprises indeed lacks proper attention from VCCI. VCCI should do more to promote State-owned enterprises and place them on an equal ground with business entities of other sectors.
VCCI should focus on advising on policy and business environment towards macroeconomic stability and growth sustainability, on policies and programmes that help enterprises remove difficulties and support corporate restructuring. Supporting domestic companies to seek markets and partners to expand multilateral cooperation is also practical help for the Vietnamese business community. Besides, VCCI should build mechanisms to effectively coordinate the activities of business councils and business forums between Vietnam and other countries, in order to meet the demand for business cooperation among companies in these markets, and support Vietnamese companies in boosting exports into these markets. In addition, to support businesses to accelerate international economic integration, deal with trade barriers, and enhance business transparency, VCCI has organised many seminars and training courses concerning international trade law, intellectual property and anti-dumping experience in target countries.
Some other issues that VCCI should take care of are as follows:
- Performing research on State-owned business management models with reference to successful cases in Indonesia and other countries; referring to suitable, effective models that can be applied to State-owned enterprises in Vietnam.
- Studying focused trade promotion activities to enhance the efficiency of trade promotion exchanges.
- Making better forecasts for enterprises to rely on during the economic integration process, especially as the ASEAN Economic Community is formed in 2015.
- Expanding our presence in other important Asian markets, like India and East Asia, in addition to the vital China market.
Vietnamese
