Economic Associations - Bridges for Enterprises

 

According to the VCCI report, nearly 50 per cent of Vietnamese companies have joined business associations. In many associations, member companies produce up to 70-80 per cent of the total output of their industries, such as aquatic product association, apparel and textile association and cement association. Mr Nguyen Tien Chung, Deputy Director of the Government Personnel Organisation under the Ministry of Home Affairs, said the associations not only gather companies of the same industries and act as a bridge to link enterprises with the government and the markets but also perform their roles of protecting their member companies. Many associations have fought to protect their member companies, such as Vietnam Textile and Apparel Association and Vietnam Bike and Motorbike Association.

 

Vietnam now has 364 associations nationwide. Besides, the reports from 61 provinces and cities counted 4,157 associations as of late 2006. Mentioning the number, functions and roles of specific associations, Mr Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI), said apart from associations that are effectively operated and bring a lot of benefits for their member companies, many associations have duplicated functions and tasks with others. He said, participants must pay membership fees and the overlapping takes more money and time from enterprises while the effectiveness does not actually catch up with expectations.