Businesses urged to better equip themselves for economic int'l integration
At the recent Vietnam International Economic Integration Forum 2017 on the theme ‘Reinforcing momentum for a new development phase’, Dr Nguyen Dinh Cung, Head of the Central Institute for Economic Management (CIEM) attributed domestic businesses’ limited capacity to move up the global supply chain to a lack of long-term strategies for human resources development, unplanned application of advanced technologies in production line modernisation, and ineffective ways in building trust among customers and partners.
Most small businesses are working with obsolete business methods and have not done the necessary groundwork to benefit from the opportunities offered by Free Trade Agreements (FTAs). Businesses lack both the knowledge and plans of implementation required for international economic integration, Mr Cung emphasized.
The representative from CIEM brought attention to worrying statistics that indicates 63% of local businesses are not equipped for international integration and only 0.001% has been adequately prepared for the process.
Therefore, it is imperative to work out strategies for better institutional reforms and a supportive low cost business environment. The fact is that the current institutional hurdles are preventing businesses from capitalizing on the opportunities for economic international integration but they are giving better opportunities for foreign businesses, Cung noted.
Mr Cung highlighted the importance of stepping up institutional reforms, improving the investment environment, alter the conduct of civil servants, and provide better insights into businesses’ internal problems so that businesses achieve steady growth as a contribution to the country’s further success in the coming years.
Le Tien Truong, general director of the Vietnam National Textile and Garment Group (Vinatex), and also Vice Chairman of the Vietnam Textile and Apparel Association (Vitas), said that in the10 years of membership of the World Trade Organization (WTO), the textile and garment sector has taken full advantage of the benefits presented in FTAs to lift its export turnover toUS$31 billion. and has managed to conquer major markets such as the US, Japan, and the Republic of Korea.
He noted that in the context of Vietnam’s participation in international integration, the clothing industry hopes that the Government concentrate efforts to hasten new-generation FTAs, consult with businesses throughout negotiations, and facilitate payment systems. Meanwhile, businesses need to improve their market research capacity and better exploit FTAs.
From the perspective of an investor, Ms Dang Thi Minh Loan, deputy managing director of Vinacapital, local businesses now face major challenges such as the limited scale of investment, and market and customer network, low production capability, and a lack of leadership personnel.
Many Vietnamese businesses have partnered with foreign businesses to develop (mergers and acquisitions) M&A capability as this is one of the most effective and fastest ways to expand their scale of operations.
Regarding the positive impacts of the Vietnam-EU FTA, Gellert Horvath, co-chairman of Eurocham said staple exports items to the EU such as coffee, clothes, leather, and footwear will see an increase of 30-40% in the coming years thanks to FTAs, adding that the country should boost exports of other goods such as tea and bamboo products.
EuroCham has received a slew of requests from Vietnamese businesses looking for help to introduce their products to the EU, he said while underscoring the importance of ensuring food safety and hygiene standards to meet the strict requirements set by the EU.
Vietnam’s efforts to improve the investment climate, revamp the legal system and ensure the quality of agricultural products will help the country grow into one of the world’s leading nations in agricultural production, he added.
Related News
Proactive plan to meet customs management requirements at Long Thanh International Airport
18:30 | 21/12/2024 Customs
Necessary conditions for operating a "natural flavor" business
19:28 | 14/12/2024 Import-Export
Mong Cai: Smuggling concerns amid sluggish business activities
09:43 | 08/12/2024 Anti-Smuggling
Agree to continue reducing VAT by 2%
11:02 | 29/11/2024 Finance
Latest News
Seafood exports expected to exceed $10 billion in 2025: expert
20:28 | 21/12/2024 Import-Export
Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature
18:30 | 21/12/2024 Import-Export
Vietnam's import-export surges 15.3%
09:44 | 20/12/2024 Import-Export
More Vietnamese firms interested in Saudi Arabia: Ambassador
09:43 | 20/12/2024 Import-Export
More News
“Give and Take” in the Value Chain of the CPTPP Market
09:30 | 20/12/2024 Import-Export
Binh Dinh province works to attract investment from Japan
15:44 | 19/12/2024 Import-Export
Agricultural, forestry and fishery exports “reach the target” early
15:20 | 19/12/2024 Import-Export
Thailand remains Vietnam’s biggest trading partner in ASEAN
15:35 | 18/12/2024 Import-Export
Rubber value soars in 2024: VRA
15:33 | 18/12/2024 Import-Export
Vietnamese businesses struggle to access green finance
09:58 | 18/12/2024 Import-Export
E-commerce: a gateway to boost Vietnamese commodities in the UK market
16:55 | 17/12/2024 Import-Export
Agro-forestry-fisheries exports top 62 billion USD in 2024
16:51 | 17/12/2024 Import-Export
Removing “bottlenecks” for digital transformation in industrial production
10:00 | 17/12/2024 Import-Export
Your care
Seafood exports expected to exceed $10 billion in 2025: expert
20:28 | 21/12/2024 Import-Export
Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature
18:30 | 21/12/2024 Import-Export
Vietnam's import-export surges 15.3%
09:44 | 20/12/2024 Import-Export
More Vietnamese firms interested in Saudi Arabia: Ambassador
09:43 | 20/12/2024 Import-Export
“Give and Take” in the Value Chain of the CPTPP Market
09:30 | 20/12/2024 Import-Export