Lam Dong Business: Overcoming Challenges for Development

2:55:22 PM | 17/10/2007

Vietnam Business Forum Magazine interviewed Mr Dinh Tien, Chairman of Lam Dong’s Young Business Association.
Could you please review some major features in the operation of Lam Dong’s Young Business Association in the past years?
In 2006, the association made radical changes. Vietnam’s accession to the World Trade Organisation (WTO) and the transparency in the State’s policies and mechanism have facilitated young businesses in the association to boost investment and economic cooperation, improving capacity and effectiveness. Many businesses have made great progress, marketing high quality and prestigious commodities in domestic and foreign markets. At the same time, they have built and solidified their brand names, earned high profit and helped improve employees’ living standards, making great contributions to the state budget as well as charitable activities and community support.
According to statistics, in 2006, 30 enterprises invested nearly VND2,700 billion in expanding production and trading scale. The association reported total revenue of VND2,455 billion, creating jobs for 400 workers in the community and contributing VND246 billion to the state budget. Many new products were introduced to the domestic market and foreign markets such as Taiwan, the U.S. and China, and became favourites. Lam Dong’s Young Business Association was awarded with Excellent Unit Flag 2006 by Vietnam’s Young Business Association.
In 2007, along with supporting enterprises and carrying out subsections 2.3 and 2.4 under the province’s BSPS project popularising their products, promoting trade and economic cooperation with other provinces inside and outside the country, the association has set up Lam Dong’s Young Business Joint Stock Company with 14 founding shareholders and a chartered capital of VND25 billion. The new company operates in three sectors including hydroelectricity, tourism and trade services, and minerals and forest product exploitation and processing. At present, the company is operating Da Hoai Hydropower Plant No.2 with estimated capacity of 10.5 MW, and applying to use 100 hectares of forest and water surface to organise ecotourism combined with hydropower, with total capital of VND600 billion.
In recent years, the number of enterprise (especially young businesses) in Lam Dong province has rapidly increased. However, the majority of enterprises have not been flexible enough to keep pace with the market. Could you talk about this issue?
In past years, with transparent mechanisms and policies and facilitation from the state and related authorities, the number of companies, especially young ones, in the province has increased considerably. Companies have seen strong development both in quality and quantity, taking responsibility for their production and trading. However, many small and medium-sized enterprises are still facing difficulties in investing in infrastructure, accessing the market, and organising their production, resulting in ineffectiveness. These businesses need support from provincial authorities and the community.
What opportunities and challenges are facing Lam Dong’s enterprises in the post WTO stage in 2007 and coming years? What strategy has Lam Dong’s Young Business Association applied to utilise opportunities and overcome challenges?
Vietnam will further integrate into the world economy from now until 2010 and carry out its WTO commitments in economic relations with other countries. This phase will create opportunities as well as great challenges for enterprises in a big playground. In the country’s new development trend, business will play an important role and be given preferential policies to boost development in both quality and quantity, contributing to the development of the local economy. The state will place enterprises and entrepreneurs at the centre of its economic policy. The Resolution of the 9th Provincial Party, with socio-economic development targets in the coming years, will create a sustainable foundation for Lam Dong’s young enterprises to effectively operate their business, improve workers’ living standards, and take part in local social activities.
In the province’s young producer and business meeting for the 2007-2010 period, the association defined its focus as promoting the creativeness of each enterprise to operate more effectively, enhancing integration capacity and strengthening enterprises’ positions in domestic and foreign markets. With the guideline: “Solidarity, cooperation – Integration- Sustainable development”, the association also planned key programmes including improving the integration capacity of young enterprises, building an entrepreneur culture, encouraging Vietnam young businesses to cooperate for development, and helping enterprises build good relations with public administrative bodies. These programmes include specific goals with practical steps to reach them, meeting the demands of member enterprises, especially in the integration process into the world market. These programmes are expected to help businesses in the province tap opportunities and overcome challenges for sustainable development in the future.
Danh Binh