Private economic corporations invest multi-sector: happy and worry

VCN- Many private companies, corporations invest many sectors successfully, but some corporations do business fail. Around this issue, the Customs News interviewed Mr. Dao Huy Giam, Secretary General of Vietnam Private Business Forum (VPFS).
private economic corporations invest multi sector happy and worry

Could you show your assessment for the expansion of investment outside key areas of some corporations such as Truong Hai, Hoa Sen, FLC, Vingroup, TH True Milk ... the last time?

It can be said, last time, in the development process, the Vietnamese large corporations has accumulated resources such as relationships, the link with the market, management capacity, staff, has access to technology, created relationships with partners in other fields at home and abroad that the largest resources have been capital... Therefore, in my opinion, the new sector development of the enterprises and corporations is suitable for the rules, when the resources are accumulated to a certain level, the enterprises will develop some industries that they think they have strengths, while the strengths being relative or absolute depending on a number of other factors.

Secondly, this is also consistent with the legal regulations and this is also an inevitable economic tendency that has arisen in some other countries for a long time. It is important that these enterprises, corporations do not waste the resources provided by others (as the shareholders of the enterprises). The solution of each corporation will bring different successes so it is not easy to evaluate common characteristics. But all these movements require great resources, such as capital resource, the ability to exploit the strengths they possess. For example, Vingroup's clean agricultural model, their strength is capital, Vingroup's market network when they have markets in their commercial centers and about 500 small supermarkets. Not to mention they apply the trend that uses land resource for clean agriculture and the need for clean vegetables of society is very high... Of course, this process will be slow progress, it is not easy for these enterprises to succeed in a short time and they are startups in new industries. Their success or failure can last from 2-5 years, even 10 years.

In sum, the multi-sector investment is an inevitable developmental rule, each industry has different characteristics, so each industry must have policies, regulations and control levels to facilitate the most for the enterprise development, but how to control the enterprises not to deviate. Because let the enterprises develop in the rule, the management capacity of the State is very important in determining whether the enterprises can meet management requirements in the medium and long term. The story about iron sheet making business Referring to make steel is an example. As for the steel industry, if left unchecked, it may be possible to have long-term environmental consequences.

Dear Sir, what is the duality of multi-sector investment?

Basically, that is the inevitable rule and a good sign, but the management capacity of the enterprises is worried. Because there are a number of the enterprises with good management capacity and control capacity, but for some enterprises, when they have more money, then they just think what should do more, so that their capacity of organization, management, connection orientation, exploring, defining the business strategy... have a hastiness and lack of many factors. Or, policy system of the enterprises does not perceive long-term issues, such as environmental issues, training, social obligations, when they have achieved good results in business. Actually, profit of the enterprises is due to avoid taxes and the State does not collect the necessary funds, the accumulation can make them realize that they can develop quickly in other areas but when developing, the result is not exactly what they want.

In general, the views of many enterprises in the implementation of business plans are simple relatively. In Europe, we approved the business plan of small enterprises with a few hundred thousand to several million US dollars of capital, the cost of each business plan is about $US 50,000 (about 1 Billion VND), but in Vietnam, there are some businesses whose business plan is only 2-3 million VND, so the way of plan writing is very stereotypical, no connotation and quality is not high.

There have been big corporations, enterprises failing to invest in multi-sectors. What are your recommendations to the enterprises in this case?

In my opinion, there is no common solution for all enterprises. The trend of multi-sector investment is inevitable but in this process, not only the Vietnamese enterprises fail but also the European companies fail. So, it is important that when a company accumulates resources to a certain level, it must consider which resources are the core, the decisive key to open up the multi-sector business. As I mentioned above, Vingroup, when deciding on clean agriculture business, they exploited financial strength, prioritized land for clean agriculture, they had their business network, as well as demand for clean agriculture, is high.

From the failure, it can be seen that the most important thing for the enterprises is a determination in order to exploit which strengths they have and right determination which resources they have. Currently, in general, the enterprises are weak on the market, especially, they often simplify the issues of standards, quality, technical ability and strength of other enterprises. For example, when signing a contract with a foreign company, while the Vietnamese company has only 1-2 consultant lawyers, the foreign company has a large support team. Therefore, in my opinion, it is necessary to encourage the enterprises to expand their investment, but in terms of policies, they must solve the environmental problems, human resource training, encourage the linkage among the enterprises. The State should make conditions for healthy enterprises, at the same time, support the business consultant, this is the issue that the enterprises are in need.

Thank Sir!

By Thu Hien (interview) /Binh Minh

Related News

Quang Ninh Customs: Many activities to develop Customs-Business partnership

Quang Ninh Customs: Many activities to develop Customs-Business partnership

VCN - Developing the Customs-Enterprises (DN) partnership continues to be identified by the Quang Ninh Customs Department as one of the key tasks to be implemented in 2024.
Enterprises accelerate production and business activities after Tet holiday

Enterprises accelerate production and business activities after Tet holiday

VCN - Following the Tet holiday in the year of the Wood Dragon 2024, numerous enterprises have resumed their production and business operations, swiftly ramping up with a plethora of orders from the very start of the year.
Deploy business support programs at the Customs unit with a turnover of "hundreds of billions of dollars"

Deploy business support programs at the Customs unit with a turnover of "hundreds of billions of dollars"

VCN - The spirit of considering businesses as partners, always "side by side" with the business community through dialogue, troubleshooting, and timely support activities has widely immersed by the Department's leaders to each unit leader of the Bac Ninh Customs Department, thereby maintaining the leading position in turnover of "hundreds of billions of dollars".
Trade promotion focuses on market development

Trade promotion focuses on market development

VCN - In 2024, trade promotion activities will continue with the goal of expanding new export markets and exploiting FTAs; Digital transformation is associated with green transformation in trade promotion to develop sustainable foreign trade.

Latest News

Legal framework for crypto assets to be finalised next year

Legal framework for crypto assets to be finalised next year

The Government has assigned the Ministry of Finance to research and develop a legal framework to ban or regulate crypto assets in May 2025 with an aim to combat money laundering.
Combating tax loss in e-commerce transactions

Combating tax loss in e-commerce transactions

VCN - Besides the results achieved, the implementation of tax management for e-commerce transactions is still limited. Therefore, the tax authority is required to review the actual tax management in localities to develop solutions to further strengthen tax management in e-commerce in the near future.
Local State Treasuries focus on effective control of public budget

Local State Treasuries focus on effective control of public budget

VCN - From the early year 2024, the State Treasury has task of managing the State fund to ensure strictness and safety. This is also the key task determined by the local customs departments.
Export growth supports the economy and stock market

Export growth supports the economy and stock market

VCN - Vietnam's export growth is on the recovery path, thereby becoming a positive signal for the economy as well as the stock market in 2024.

More News

The corporate bond market will enter new period of development

The corporate bond market will enter new period of development

VCN – After recovering in 2023, the corporate bond market is predicted to see slow growth trend in 2024 due to the impact of stricter provisions of Decree 65 /2022/ND-CP. However, this will help investors enjoy benefits because it creates transparency, as well as the quality of issued corporate bonds.
The bad debt ratio has increased, putting pressure on banks

The bad debt ratio has increased, putting pressure on banks

VCN - According to the summary of 2023 business results of 28 listed banks, the total volume of bad debt by the end of 2023 increased by more than 40% compared to 2022, to nearly 195,000 billion VND.
Finance sector held a dialogue with nearly 250 Korean enterprises on tax and customs policy

Finance sector held a dialogue with nearly 250 Korean enterprises on tax and customs policy

VCN - On February 29, the Ministry of Finance held a Dialogue with Korean enterprises on tax and customs policies 2023-2024. Deputy Minister of Finance Cao Anh Tuan chaired a dialogue.
Accelerate development of Stock market in 2024

Accelerate development of Stock market in 2024

VCN - At the Conference on developing the stock market in 2024 held on February 28, Prime Minister Pham Minh Chinh said that it is necessary to take measures to upgrade Vietnam’s stock market from frontier market to emerging market, especially focusing on resolving obstacles to meet criteria by strictly honoring commitments.
Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN – Sharing direction of ta management in 2024, Mr. Mai Son, Deputy Director General of Taxation said that the Tax sector has implemented solutions to achieve “dual goals” of completing the revenue target while supporting enterprises in operation and economic growth.
Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Public investment - Expectations from key transportation projects

Public investment - Expectations from key transportation projects

VCN - As one of the three main growth engines of the economy, in recent times, public investment has played an important role, leading and activating all social resources for development investment. This important driving force continues to have very positive signals with disbursement results reaching 2.58%, higher than the same period. 2024 strives to achieve a disbursement rate of at least 95%.
More policy rate cuts forecast in 2024 to support economic growth

More policy rate cuts forecast in 2024 to support economic growth

There is still room for the State Bank of Vietnam (SBV) to make another policy interest rate cut in 2024 to boost economic growth, analysts believed.
Urgently complete Decree on application of Global Minimum Tax inline with roadmap

Urgently complete Decree on application of Global Minimum Tax inline with roadmap

VCN – Regarding the development of Decree on the application of Additional corporate income tax (Global Minimum Tax), Deputy Director General of the General Department of Taxation Dang Ngoc Minh has requested units developing the Decree to closely cooperate and give opinion in line with actual operations of corporations that are affected by Resolution 107/2023/QH15 to effectively facilitate taxpayers during the implementation of the Decree.
Read More

Your care

Latest Most read
Legal framework for crypto assets to be finalised next year

Legal framework for crypto assets to be finalised next year

The Government has assigned the Ministry of Finance to research and develop a legal framework to ban or regulate crypto assets in May 2025 with an aim to combat money laundering.
Combating tax loss in e-commerce transactions

Combating tax loss in e-commerce transactions

VCN - Besides the results achieved, the implementation of tax management for e-commerce transactions is still limited. Therefore, the tax authority is required to review the actual tax management in localities to develop solutions to further strengthen ta
Local State Treasuries focus on effective control of public budget

Local State Treasuries focus on effective control of public budget

VCN - According to the State Treasury, in 2023, the State Treasury of provinces and cities coordinated with local collection agencies to fully, promptly and accurately disburse revenues for all budget levels; regularly provide revenue data to competent ag
Export growth supports the economy and stock market

Export growth supports the economy and stock market

VCN - Vietnam's export growth is on the recovery path, thereby becoming a positive signal for the economy as well as the stock market in 2024.
The corporate bond market will enter new period of development

The corporate bond market will enter new period of development

VCN - Fiin Group data shows that the privately placed bond market saw a slight recovery in 2023 with the worth of VND 345.8 trillion. The value of the publically offered bond reached VND 37 trillion. The issuance of industry groups showed signs of recover
Mobile Version