According to a recent survey by the Vietnam Chamber of Commerce and Industry (VCCI), nearly 68 percent of enterprises surveyed admitted that they had to pay kickbacks to gain priority. Besides, over 60 percent said that unofficial charges were quite high for them and these charges resulted in inequitable business environment for businesses. In the rush for profits at any cost, is the value of integrity and transparency respected? Vietnam Business Forum interviewed Mr Nguyen Quang Vinh, Deputy General Secretary of VCCI and General Secretary of the Vietnam Business Council for Sustainable Development (VBCSD), on this issue. Huong Giang reports.
Is it unconvincing saying that integrity and transparency is the core of business administration, while businesses always place profitability at the forefront of their operations?
Don’t frame integrity and transparency as purely moral values because these are actually an interesting combination of ethics and business. It provides a foundation for creating business value because it brings business operations to a process that complies with ethical values and certain norms of an organisation, a country, and even the world on a higher plane. Now, the economy has developed to a level that opportunities only come to businesses with long-term visions and in pursuit of sustainable development values. Once the company builds its code of conduct based on ethics, integrity and transparency in business, it will create its own superior competitiveness, productivity and performance and ensure innovation process.
What is the long-standing threat of losing integrity in business? This question is often not placed by business leaders because they are under heavy pressure of profitability. But, consequences of the lack of transparency and the lack of practical element of integrity in business are the collapse of economic operating principles and the gradual formation of illicit business habits, which weakens the competitiveness capacity of businesses and of the economy. And more importantly, it eliminates itself from the certain trend of regional and international markets, especially when Vietnam is entering a new level of integration.
Many businesses have raised the question: how they can compete when they do business with transparency and integrity but their rivals do not? And, how can they say no to corruption when retaliatory actions are entirely grounded?
Practising integrity and transparency in business has become an inevitable trend. It is no longer a matter of a developing country but even developed countries must also take it into account. Corruption has become potential threat to the world it develops at increasingly sophisticated and serious forms and scales. Therefore, the World Economic Forum (WEF) and United Nations summits have focused on this issue. Vietnamese businesses also cannot stay out of this trend. Indeed, corruption comes from both sides: Businesses and State officials. The hardest difficulty is to convince businesses to engage and understand the role in the fight against corruption and not to abet corruption.
Still, businesses need backing in the fight against corruption and exercise of integrity and transparency. Like institutions, like businesses. But, businesses also help build institutions. Once businesses are developed on honesty and integrity, they will help create a strongly developing nation.
According to the survey, 57 percent of companies do not want to give kickbacks but they will be treated unequally if they do not. Who will they rely on when there are very few agencies with sufficient authority and competence to prevent corruption and enforce integrity and transparency?
Obviously, this is too new in Vietnam and it has to resort to appropriate media methods. I anticipated what would happen when I studied this issue in the UK and Germany decades ago. Integrity, transparency and anti-corruption are not only the responsibility of businesses. Obviously, it is necessary to have a clear mechanism for authorities. And, to change the mindset of businesses, VCCI has actively collaborated closely with State management agencies to introduce solutions to implement the Resolution of the Government on improving the business environment and enhancing the national competitiveness. VCCI chooses solutions that help companies change their mindset and understand that they are not alone if they take collective actions. This is also the basic spirit of Scheme 12 on advancement of integrity in business. The Scheme was named by VCCI President Vu Tien Loc at the 12th Dialogue on business roles in the fight against corruption hosted by VCCI and the Government Inspectorate in 2013. Currently, Scheme 12 is assigned to the Office for Business Sustainable Development of VCCI. Positive results have been seen in public administration reform in tax and customs stages.
Looking back on 2005, VCCI realised the importance of integrity and transparency in business and actively sought solutions to exercise this. In 2007, VCCI cooperated with the United Nations to establish the Global Compact Network in Vietnam to support businesses to comply with the UN’s 10 principles, including anti-corruption principle. Also because of these persistent efforts during the past 10 years, VCCI was assigned by the Government to collaborate with the British Embassy, the British Business Association in Vietnam, the Vietnam Business Forum to organise a workshop to this effect on July 30 with the attendance of British Prime Minister David Cameron, Vietnamese Deputy Prime Minister Nguyen Xuan Phuc, VCCI President Vu Tien Loc and senior representatives from nearly 200 businesses.
Most importantly, to cure this deep-rooted disease, the lever is a collective power of enterprises and the Government to create a transparent business environment and increase national and corporate competitiveness. And, the vital fulcrum is the efforts of enterprises to develop their internal resources by creating sustainable values. Once the lever and fulcrum are joined, wave after wave of Vietnamese companies will reach out to the region and the world.
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