Ambassadors - Information Link for Enterprises

In a bid to support enterprises to expand and accelerate business activities with foreign partners through Vietnamese embassy channels in other nations, the Vietnam Chamber of Commerce and Industry (VCCI) has recently hosted a meeting for newly appointed ambassadors and businesses.

 

Mr Vu Tien Loc, VCCI President, noted that ambassadors and heads of representative agencies of Vietnam in foreign countries have a very important role. They not only advise Government agencies to have reasonable decisions, establish strategic partnership with Vietnamese agencies but also actively help boost business and investment cooperation, overcome trade barriers and disputes in line with international commitments.

Especially, when working in host countries, ambassadors will help businesses to learn legal information, corporate information and consumer trends and suggests development directions.

 

Mr Duong Chi Dung, Chairman of the Board of Members of the Vietnam National Shipping Lines (Vinalines) said Vietnamese enterprises hoped new ambassadors will introduce strengths and fields of Vietnamese enterprises to potential partners in host countries, particularly appraising partners in the process of signing cooperation, negotiating and executing agreements. “In recent years, companies accompanying State official visits and joining attached business forums signed many big contracts. However, Vietnamese companies, notwithstanding very big concerns in Vietnam, are also small relative to foreign ones. Thus, enterprises hope to have assistance from diplomatic missions,” Dung said.

 

Most business representatives agreed that insufficient information about foreign countries, particularly partners, is the hardest difficulties when they invest or cooperate or do business there.

 

According to Mr Can Van Luc, senior adviser to the Chairman of the Bank for Investment and Development of Vietnam (BIDV), information is crucial, particularly information about the status of partners. BIDV has to pay at least US$10,000 a month to buy world information. Last year, BIDV performed many transactions and faced many difficulties in finding out a reliable information channel to “appraise” a partner.

 

“Hopefully, newly appointed ambassadors will consult enterprises about legal issues in host nations - a very important aspect that will help companies avoid violations arising from lack of understanding, and advise enterprises to hire offices or workplaces. In addition, our ambassadors will help enterprises contact students because this powerful force is enthusiastic, understand local language, culture and people and can act as a bridge for enterprises to approach partners and markets,” Luc proposed.

 

Mr Do Quy Dung, President of Vietnam Telecommunications Joint Stock Company, said: The process of providing information and identifying the authenticity of foreign partners usually takes a lot of time and this sluggishness may lead to stagnation in the process of forming cooperation between the two sides. Thus, Mr Dung hoped Vietnamese representative agencies in foreign nations can open an information channel in host countries to report and determine the authenticity of foreign partners for Vietnamese enterprises.

 

Mr Vu Quang Minh, Vietnamese Ambassador to the Great Britain and Northern Ireland, said: To avoid lawsuits, enterprises themselves have to focus on product quality, formulate cooperative relationship with foreign barrister associations and importers, even competitors. As regards the US market, according to Ambassador Minh, opening a representative office is much more difficult than setting up a limited liability company because of low costs and simple procedures. Thus, Vietnamese companies should carefully study partners of this form.

 

Tran Van Long, Vice Chairman of Vietnam Overseas Businesspeople Association, said: Forming relations between ambassadors and businesses is essential. Apart from providing official information about partners, ambassadors also represent a "reputable insurance" for Vietnamese companies when they sign contracts with foreign partners.