VCCI Helps Businesses Overcome Difficulties from Global Crisis

 

As businesses facing economic crisis, VCCI conducted a survey on business competitiveness to review and check the “health” of Vietnamese businesses. The survey was made on 630 enterprises in Hanoi, Ho Chi Minh City and neighbouring provinces focusing on workforce, finance (capital), enterprise reform and market access. The result shows that though with difficulties caused by the financial crisis, Vietnamese businesses continue with success story: 37 % expand their production, nearly 50 % maintain at the same level, 9 % reduce the size, 1 % plans to close down.

 

Ms Pham Thi Thu Hang, Director of Business Development Institute - VCCI, reaffirmed that businesses are very creative, changing products, working process and organization. 67.8 % of enterprises under review have developed new products, 57.3 % with new or improved services. However, Ms Hang said that the reform is almost by the enterprise itself with little cooperation from other enterprises. Without the cooperation of partners and research institutes, it will be difficult for Vietnamese businesses to increase their competitiveness.

 

The working process has been improved such as maintenance or purchase of new equipment, improvement of accounting and planning. 55.7 % of enterprises have applied new process with 27.3 % implemented completely new process. Meanwhile FDI enterprises purchase more equipment and software.

 

Cooperation with foreign associations and businesses
With the purpose “Cooperation for a better business environment”, in 2009, VCCI organized dialogue with foreign business associations in Vietnam to discuss on “burning issues” especially administrative formalities. In general, foreign businesses believe that policy, legal documents and administrative formalities are inconsistent and complicated. The government should improve them to make business environment more friendly to attract investments.

Mr Patrick J Regis, Chairman of British Business Association in Vietnam requested Vietnam to establish “one stop shop” for administrative formalities. It will be an independent office connecting all related ministries and ensuring good service to foreign business community. An intermediary office will also be established to represent the government and assist business associations and member companies in consulting service on admninistrative formalities, providing essential addresses and initiating dialogue with related ministries and agencies. It will be at the same time an official channel for feed back.

 

According to Dr. Vu Tien Loc, VCCI President, the close cooperation between foreign business associations and VCCI will ensure a stronger voice in developing policy, law and business environment. The meeting will be organized every six months.

 

To expand international markets, in addition to seminars and conferences, VCCI has in recent years organized several business missions for Vietnamese and foreign companies to conduct market survey and seek business opportunities. Business forums such as Vietnam-EU, Vietnam-Japan, Vietnam-China, etc., have been organized regularly with practical activities. On the same occasions, many business agreements have been signed and valued at millions of US dollars.

 

In 2009, VCCI has initiated for the first time Vietnam-Russia Business Forum and established Vietnam-Russia Business Council (VRBC). VRBC will serve as an economic forum for trade and investment, ensuring businesses to make recommendationa to government policy, providing them information on policy and market, and uniting the two business communities. The forum will a channel of dialogue, receiving information and forwarding recommendations to related authorities of the two countries. It also helps businesses in training and business opportunities, organizing seminar, market survey, trade fair and other activities.

 

One of main activities of VCCI in 2009 is Business Start-off Festival 2009. The programme began in March 2009 and concluded after 8 months with award ceremony held in Hanoi honouring exemplary businesses.

 

According to Mr Pham Gia Tuc, VCCI Vice-President and Secretary General, Head of the Organizing Committee, this year, there are over 150 projects of over 300 students from 30 universities and colleges nation wide. In 7 years, the programme was participated by 15,000 young students witrh nearly 1,500 projects and business ideas, many of them have been implemented. The programme has stimulated business enthusiasm among young people. Many of them have become successful entrepreneurs and managers, Mr. Tuc concluded.

 

Apart from market survey, trade promotion and business opportunities for Vietnamese and foreign enterprises, VCCI has organized several training courses for businesses focusing on business start-off, capacity building, taxes and information technology. The training courses have helped businesses in their international economic integration.