Military Enterprises Join Business Activities

Military Enterprises Join Business Activities

"The participation of military enterprises in the industrialisation and modernisation of Vietnam is a correct policy. Many of them are operating efficiently, contributing not only to the national defence but also to the development of the national economy. However, they have several difficulties in the economic integration. They have to change both in organisation and workforce. Related authorities must assist them to dismantle the difficulties. This seminar "Military enterprises - renovation and integration" serves that purpose", said Mr. Hoang Van Dung, VCCI Vice President at the seminar organised on November 24, 2004 in Hanoi.

In the past two years, since the establishment of the Trade Promotion Centre of the Ministry of Defence, military enterprises have recorded remarkable progress. Among them are the Military Telecom Company (Vietel), Vietnam Flight Service Corporation, Saigon Tan Cang Company, etc. In his report, a Vietel representative disclosed that his company has expanded  fixed telephone networks to 35 provinces and mobiphone network to 63 out of 64 provinces and cities of Vietnam. For its part, Saigon Tan Cang Company has efficiently operated and made up 40 per cent of the market share in container handling in Vietnam.

The application of information technology in economic activities has also been promoted by military enterprises. In this regard, Mr. Ho Si Hau, Head of the Economic Department, Ministry of Defence said that his department has launched a website on military enterprises and many enterprises have started using the Internet and concluded some business contracts.

Due to their equipment and technology, military enterprises could not compete in business activities.  Their unfavourable location and poor infrastructure also caused additional difficulties. The Economic Department has proposed some measures to boost the process of renovation and integration.

According to Mr. Hau, military enterprises have great potential in mechanical sector. A market survey has been conducted and many contracts have been signed with foreign partners. The sector has already 36 FDI projects, 76 per cent of which are in efficient operation. The initial success will encourage military enterprises to invest more resources in the economic development of the country. 

• Nguyen Thoa