Domestic firms call for competition reforms
HA NOI — Business leaders are feeling the pressure from foreign competitors and have called on both Government and business to make substantial changes so Viet Nam’s economic integration will be a success.
The entrepreneurs sounded the warning at a symposium in Ha Noi on Sunday, where they gathered to suggest ways to stimulate a domestic economy they described as "not competitive and sluggish."
The two sponsors of the event, Deputy Trade Minister Luong Van Tu and the chairman of the Viet Nam Chamber of Commerce and Industry Vu Tien Loc, told business leaders that the domestic economy and enterprises were still very weak.
Tu credited the use of Vietnamese labour and natural resources for the success of some locally manufactured goods in foreign markets.
The deputy minister warned that the incresing price of imported raw materials may weaken Viet Nam’s competitive advantages.
He blamed poor quality goods and outdated manufacturing methods for Viet Nam’s performance in the international market.
The general director of the Thai Nguyen Steel Corporation, Dang Van Siu, said the tariffs on imported steel would fall to less than 5 per cent over the next few years.
He said domestic steel mills would have to raise their quality and reduce prices to survive on the local market.
Some business leaders said managers and workers were unaware of the importance of competition, and pointed to domestic enterprises’ lack of marketing expertise, limited capital and obsolete manufacturing methods.
However, other entrepreneurs pointed to a lack of relevant education and training for business managers preparing them for a market economy.
As a result, they said, business people are unsure how to exploit information technology to promote and sell their goods on the internet.
Some entrepreneurs said domestic businesses had been reluctant to end their monopoly in the domestic market, which had reduced their competitiveness.
State, business join efforts, key to survival
Experts told the symposium that businesses should draw on more sources of capital, develop strategic plans and strengthen human resources in order to achieve sustainable growth.
Many representatives said the Government should work hand-in-hand with businesses, policy-makers, researchers and primary producers to improve the competitiveness of Vietnamese goods and services.
The director of the Van Dien Phosphate Fertiliser Plant, Bui Quang Lanh, said the Government should stabilise the prices of raw material, fuel and electricity so chemical enterprises could sell their goods to farmers at low prices.
The president of the Viet Nam Engineering Business Association, Nguyen Van Thu, said the Government needs an investment policy for engineering firms that is appropriate to each stage of their development.
He also said each business should undergo restructuring without waiting for assistance from the Government.
However, the deputy director of the Central Economics Research Institute, Le Xuan Ba, said trade protection could not go on forever.
He said it would be unwise for the State to completely abolish trade barriers, and recommended that protection be limited to certain trades for short periods.
He said businesses should be aware that they will eventually need to survive in the market on their own.
Deputy Industry Minister Bui Xuan Khu said stronger macroeconomic management would help businesses exploit Viet Nam’s advantages and become more competitive.
He also said business managers need to know how to make the most of these potentials. — VNS
