The policies should be changed to facilitate cooperation of enterprises

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Mr. Yoon Sang Ho.

Thus, this cooperation needs new mechanisms in the hope of achieving more efficiency and higher quality. A Customs Reporter had an interview with Mr. Yoon Sang Ho, CEO of Korean Business Association in Vietnam (SMBL).

What do you think about the connection and cooperation between Vietnam enterprises and foreign enterprises, specifically Korean enterprises in recent years?

The good news is that in recent years, Vietnam enterprises have not only cooperated with Korean enterprises, but also cooperated with foreign enterprises in many cooperation models, many cooperation activities and programs

With the target of global integration of Vietnam today, it is certainly true that these relationships will need expanding further.

Besides the significant increase in quantity and quality of relationships, the cooperation models in the recent time had many changes in a positive and more efficient direction. Previously, the Government played a leading role in issuing policies and grounds for cooperation between the two enterprises, now the enterprises are aimed at self-cooperation by their abilities. This will create a new growth model and be multiplied quickly.

What are advantages of the cooperation for the two countries’ enterprises, Sir?

It can be said that this is a very favorable time for Vietnam enterprises to expand their relations with foreign enterprises. On the one hand, Vietnam enterprises get many opportunities from this cooperation. Because Vietnam enterprises are now under great pressure from Chinese enterprises for their cheap goods, creating big competition, te Vietnam enterprises need improving. Therefore, if Vietnam enterprises, especially small and medium sized enterprises cooperated with foreign enterprises, they can take advantages of technology, services and commodities, etc. Although this awareness is only at the beginning, it will create major premises to facilitate the enterprises’ development.

On the other hand, foreign enterprises will also receive great opportunities to expand their developments. For example, Korean enterprises have invested much in Vietnam, previously, these enterprises could not build into a system but now, with combining with Vietnam enterprises, Korean enterprises will have further cooperation relationships, forming a completed system which makes many more enterprises toward cooperation.

What are disadvantages of the cooperation, Sir?

The first disadvantage is the Vietnam legal system, especially in administrative procedures. Although the legal system has been amended many times to facilitate enterprise activities, many subordinate authorities and implementing officers still follow former habits, causing difficulties for foreign enterprises in administrative procedures settlement. Unless this problem is reformed more positively, it will become a big prevention for foreign enterprises.

The second disadvantage is that though the Vietnam’s labor force is abundant and young labor force is multitudinous, people who can work effectively, and do much work is not abundant.

Along with the disadvantages above, the biggest disadvantage is the difference between the two side’s enterprises. While Korean enterprises have specific characteristics, as well as mechanisms and particular organizations, Vietnam enterprises have inherited experiences from the US, Japan, Germany, so the administration system and organization policies are not unified and have not particular characteristics. This causes difficulties in combination between the enterprises. In my opinion, Vietnam enterprises should have methodical working models for foreign enterprises easily see prospects as well as potentials in cooperation, thereby promoting the cooperation and investment from the foreign enterprises.

As for you, what are solutions to improve the cooperation between Vietnam enterprises and foreign enterprises?

In my opinion, besides solving internal problems of Vietnam enterprises well and effectively, the Vietnam Government should continue to issue policies for the enterprises to cooperate, exchange and discuss together. This is a bridge for enterprises who really want cooperation to contact to each other and sign cooperation agreements.

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For Vietnam, cooperation is being mainly promoted through Vietnam Chambers of Commerce and Industry (VCCI), however, there are issues of concern, cooperation is sometimes a macro issue for VCCI. We established SMBL - a completely private company to bring practical benefits for enterprises and help enterprises including small and medium sized enterprises to meet together and promote their cooperation faster without being bound by the provisions and conditions.

Thank you,