It is important to use both the “fulcrum” and “lever” from businesses and the Government to enhance the national competitiveness, said Mr Nguyen Quang Vinh, Director of the Office for Business Sustainable Development (SD4B), after the Government issued Resolution No. 19 on primary tasks and solutions for continued business environment improvement and national competitiveness enhancement in 2015-2016. Duy Anh reports.
Mr Vinh said that the Government's commitments to streamlining administrative procedures, reducing customs clearance procedures for exports and imports, cutting down the time of tax payment, access to electricity, and other works can be seen as a “lever” effort to better the business environment. But the decisive factor of competitiveness improvement is the internal "fulcrums" that lie within enterprises, like strategy planning, governance capacity, productivity improvement, branding, scientific and technological application, and corporate social responsibility (CSR) practices.
So, in a broader view, the enhancement of national competitiveness requires a strategy that needs the joint efforts of the Government, the business community and every business?
That’s right. After Resolution 19 came into effect in 2014, we have picked up “sweet fruits” without much cost. For example, we reduced the tax payment time from 812 to 121 hours and the customs clearance period from 23-24 to 13-14 days to be equal to those in ASEAN 6. It is important that we have created the “momentums” for continued reform. But, a lot of challenges are still ahead because regional countries such as Myanmar, Laos and Cambodia are also pushing for reform. I emphasise that Vietnamese businesses must have good governance capacity, effective business strategy planning, high productivity and other pluses to be the winners in the period of integration, especially at the advent of the upcoming ASEAN Economic Community.
The enactment of Resolution 19 in 2015 shows the Government’s determinations to continued acceleration of institutional reform, administrative procedure streamlining and business environment improvement. But, should we consider new targets, i.e. ASEAN 4 instead of ASEAN 6, to increase our reform resolution?
2015 is considered the year for business. The Government will create the most favourable conditions for enterprises to develop but enterprises must also make a constant effort. But, what should they do to enhance their productivity and internal capabilities?
Needless to say, productivity is seen as a weakness of Vietnamese enterprises, especially labour productivity. Of course, the productivity of enterprises depends on many other factors, such as administration, scientific and technological application an efficient use of capital. Another weakness is the strategic planning and competitiveness strategy while foreign brands start to make inroads into Vietnam. Not many Vietnamese companies can effectively compete in both domestic and foreign markets. Such companies include Hoang Anh Gia Lai, Viettel, Saigontourist, Bitis, TBS and Ecofarm.
Regarding CSR practices, while large companies and multinational companies already embedded CSR into their strategies and make business solutions which are good for their own and the society as well, Vietnamese companies, mainly SMEs, are at an initial stage of doing CSR. Many do so many philanthropic activities and donations and this does not correctly demonstrate the spirit of CSR.
What will the Vietnam Chamber of Commerce and Industry (VCCI) in general and the Office for Business Sustainable Development do in 2015 to support the business community to promote its internal forces and enhance the competitiveness as stated in the Government’s Resolution?
VCCI achieved initial successes with Resolution 19 in 2014 and was highly appreciated by the Government and business community. This year, April to be specific, VCCI President will submit the VCCI Action Plan for the execution of Resolution 19 to the Government in 2015. This important programme reaffirms the resolve of VCCI and the business community to realise the spirit of the Resolution. Specifically, VCCI will engage in both “lever” and “fulcrum”. VCCI will carry out Scheme 30 on administrative reform and business environment improvement with the Government and cooperate with tax and customs authorities to hold business dialogues to seek best solutions to problems facing the business community. VCCI will also join forces with the Ministry of Internal Affairs, the Ministry of Justice and other relevant agencies to build criteria and assess administrative procedure reform in central and local State agencies, and consider credit rating of the business community to State agencies. VCCI will collaborate with domestic and foreign partners to develop and promote programmes on competitiveness improvement, international integration and business sustainability for businesses. Important programmes include productivity improvement for businesses, cleaner production training for businesses, CSR practices and sustainable business, capacity-building for business associations, sustainable agriculture and food security.
“Fulcrum” and “Lever” are two inseparable elements in the effort to boost up competitiveness. I believe that a good combination of the two factors will create a new push for growth and provide momentums for Vietnamese economic development in 2015 and beyond.
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