A national enterprise development programme was first mentioned in the socioeconomic development draft plan between now and 2010. On the occasion of the Lunar New Year, Vietnam Business Forum conducted an interview with Dr. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI).
In the 2001-2005 period, the enterprise sector witnessed remarkable growth. In your opinion, what were driving forces for the development of Vietnamese enterprises and entrepreneurs?
Over the past 20 years, it is accepted that driving forces always lie inside the creativeness of each individual in society. Certain landmarks for exploiting such potentials is the key to a breakthrough. Implementation of the Enterprise Law in 2000 and the US-Vietnam bilateral trade agreement are mostly attributed to economic achievements in the 2001-2005 period.
The Enterprise Law has brought many changes to all economic sectors over the years by renovating policies, minimizing complicated administrative procedures, and improving awareness of enterprises in mobilizing social resources for production in the future. The law has encouraged the household-based economic sector to turn into more effective models, especially the enterprise model, creating an interactive relationship between authorities and enterprises. In the integration process, Vietnam has stated a firm commitment to entering the world economy.
In parallel with other bilateral cooperation between Vietnam and ASEAN, Vietnam and APEC, Vietnam and China, EU, and Japan, the BTA also facilitates Vietnam in accessing the international economy with a focus on boosting exports and attracting foreign investment.
These two factors have brought favorable initiatives for enterprises and Vietnam as well, requiring enterprises to strengthen their competitiveness; expanding markets into new sectors such as real estate, labor, technology transfer, and intellectual property; upgrading infrastructure including transport competence, electricity supply, telecommunication, and finance and banking; and improving cooperation among enterprises and authorities at all levels.
Although it is hard to carry out enterprise development polices, we have achieved success. What is the key?
The key for the successful enterprise development plan in the 2001-2005 period was the consistent implementation of the government’s initiatives and the strong support of both enterprises and citizens.
The Central Committee and the Politburo have already issued decisive resolutions such as Resolution No. 07-NQ/TW on international economic integration, resolutions at Central Meeting No. 03 and No. 05 on state economy, cooperative economy, and private economy, and resolution at 9th Meeting of IX Party Central Committee on reforming SOEs and building up a well-equipped entrepreneur staff to meet industrialization and modernization demand.
The National Assembly has also made some urgent changes in law provision to cement economic development guidelines and create a stable and equal business environment for all economic sectors. Several laws including a Law on Bankruptcy, a Law on Civil Procedure, and Arbitrator Ordinance have been launched.
In particular, the government has carried out its guidelines on the basis of scheduled action programmes and established consistent relations among authorities and enterprises in minimizing unnecessary licenses, which have annoyed enterprises during the time.
Their successful development is partly thanks to the eradication of disregarding the role of entrepreneurs. At the NA conference, the government now always regards enterprises and entrepreneurs as the main force in the cause of economic development and integration. It is the first time entrepreneurs were honored on their own day (October 13).
Despite all-out efforts made by the government and others, the number of enterprises in Vietnam remains modest. What does Vietnam need to do in the coming time?
The development of enterprises will flourish if reforms in state-owned economic sector, administration, and judicial system are conducted more comprehensively and synchronously. It is difficult to excite business ambition in the majority of Vietnamese people as unhealthy competition is still expected among enterprises in the time to come.
Thus, policy clarification and fighting corruption are urgent issues in cleansing the enterprise and entrepreneurial community. These issues have kindly been under consideration at the NA meeting. The government has already ratified a Law on waste and fighting corruption while it is building up a programme on thrift practices and anti-waste and corruption. It is the first time Vietnam has organized a large-scale inspection on the existing situation regarding corruption.
We [enterprises] are expecting a clearer mechanism. With a firm determination in WTO integration, the upcoming 10th Communist Congress will further affirm a key role of enterprises and entrepreneurs in the national economic development and in the world integration.
Being as a representative for the Vietnam enterprise and entrepreneur community, what will VCCI do to reach the target of 500,000 member enterprises by 2010?
Regarding the fact that enterprises can only develop in a healthy environment, in the coming time, the VCCI will focus on the following tasks:
Firstly, VCCI will further boost trade promotion and investment activities to build up a friendly image among foreign enterprise communities about goods and services supplied by Vietnamese people. The success of Vietnam Day Programme last year proved to be in a proper and stable direction foe Vietnamese enterprises in enhancing cooperation and entering the world market.
Secondly, VCCI will continue to honor the spirit of domestic enterprises in business culture development, improve the quality of training programmes on starting business, and build high-quality consultant programmes on business management.
Thirdly, VCCI will raise the effectiveness of domestic enterprises and entrepreneurs in an advisory role as a developed economy often requires concrete initiative policies. VCCI will also focus on conducting research and publicizing an index on province-level management competence. The VCCI will cooperate with localities, especially major economic zones, to boost IT application in business to minimize costs and shorten transactions among enterprises.
Thank you very much!
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