Vietnamese Businesses: Sailing to International Markets

 

First of all, the achievements recorded in the foundation and development of Vietnamese businesses and entrepreneurs are due to the correct orientation and policy of the Party in the past period. From 2002 to the first half of 2009, the number of private enterprises increased by 20 percent year on year. Private enterprises in 2008 are 4.5 times in number and 41 times in registered capital compared to that of 2000. Vietnam has so far nearly 400,000 enterprises of different sectors and sizes operating in all industries. Besides, by the end of 2008, there were some four million business households. The success story of the Vietnamese economy in the past years is in large measure due to the contribution of the Vietnamese business community. Regional and world economic integrations have created favourable conditions for the development and growth of Vietnamese business community.

In the past years, many Vietnamese businesses have made use of the opportunities and have become large enterprises. In consumers’ goods, many Vietnamese brands with famous products and services have been highly appreciated by local and foreign consumers such as Vinamilk, Thien Long, Kinh Do, Viet Tien, Saigon-Kimdan, Biti’s, Trung Nguyen, Sabeco, Vinamit, etc. Vietnamese businesses continue to expand their markets in the region and the world over. They also continue to develop business areas and forms, integrating with the world businesses in standard and size. Thanks to the policy and efforts of the government to promote economic, trade and investment cooperation with other countries, the Vietnamese business community can expand and diversify their cooperation with the world business community. Vietnamese businesses have started investing abroad with high efficiency.

 

Vietnamese entrepreneurs and businesses have grown up in quality and quantity, Nevertheless, they still have to work hard to be on the same level with regional and world businesses. It is expected that they can narrow the gap and increase the size by merging and accumulating capital. However, their managerial skill is still lower than that of the region and the world. Such weakness has affected the efficiency and sustainability of businesses, especially in the present difficult conditions.

After the integration, professionalism, capacity and management are real barriers for Vietnamese businesses to sail in the high sea. Many enterprises can manage well when they are small and medium sized, but they have problems when getting bigger. Perhaps, it is because after 20 years of renovation, Vietnam business community still is not a representative of regional and world standards.

 

There is in fact disintegration among businesses. Those who respond properly to quality standards of business management and workforce can overcome the difficulties, develop business strategy, increase competitiveness and control the changes in macro-economy and world economy. Some enterprises can even maintain and increase their growth rates. They serve as good examples and should be multiplied.

To overcome weaknesses and integrate faster with the world community, Vietnamese businesses must improve their management capacity, application of technology, professionalism and customer-centre business culture. It will help businesses grow faster in size as well in quality.

Nonetheless, it is not easy in the present conditions. On a national scale, Vietnam has undergone several changes in the education system, especially in university and vocational training to meet the demand of economic and business development. For their part, Vietnamese entrepreneurs and businesses can get knowledge and modern management by expanding international cooperation and consulting service and taking part in international training programmes. Businesses must adapt themselves to business methods and professionalism. It is also true to small and medium enterprises. If such view is accepted, businesses can greatly improve their capacity and in the high sea they will have fewer problems with the storm.

 

The role of the State is very important. The inter-action between the FDI sector and local enterprises is very poor in technology transfer and learning advanced management. The State should promote foreign investments, develop heavy industry and supporting industry, implement major economic programmes and projects to increase the role of all sectors (State-owned, private and FDI) in capacity building and to develop the business community.

Today, socialization and development of the business and service market are the main trend. However, the role of the State is also important in implementing training programmes and development of entrepreneurs and businesses. In the past years, VCCI and business associations in conjunction with foreign partners such as Japan, EU, US, etc. organized many training programmes for businesses and entrepreneurs from start-off to business development. In particular, the programme co-sponsored by VCCI and ILO in 40 provinces and cities was most successful. The programme needs more resources to attain the goal of 500,000 successful businesses by 2010.

 

In the past year, VCCI together with Japanese Association of Managers have applied Monozukuri management model in Vietnamese enterprises. It is a meaningful step. But it lacks resources to implement the project. VCCI has proposed a programme to train entrepreneurs nation-wide. VCCI and local authorities will establish a network of business associations to implement the training programme for all businesses, especially small and medium sized and new enterprises. We hope the State will support our far-reaching programme.

 

In the past, VCCI has made great contribution to the business community, especially in improving business environment and promoting trade and investment at local and national levels.

 

In the coming years, VCCI will continue its role as a representative of the business community, upgrading its activities in regions with VCCI branches and representative offices. VCCI will help localities establish business associations, expand and upgrade business associations in order to form a network of efficient support to the business community.

 

With its role and mission, VCCI will boost promotion activities and protect the interests of businesses by increasing the exchange of views to understand fully the difficulties of businesses so as to advise concerned authorities on policy and measures more appropriate to businesses.

 

VCCI will continue to promote trade and investment in new markets, increase export in all markets and products with high added value, and cooperate with partners to enter into new markets with diversified products.

 

In particular, VCCI will support the business community in sustainable economic development with high quality and efficiency. The Chamber will join hands with business associations to develop economic strategies for each sector and region for optimal interest and competitiveness. At the macro level, VCCI will together with business associations and related organizations organize training courses to increase management capacity of businesses, promote trade and investment increase the application of technology and knowledge in business activities and gradually upgrade businesses and their competitiveness.