VietNamNet Bridge – There will be no major obstacles for Vietnamese businesses in the global market in 2015, but the biggest difficulties will come from the domestic market, economists say.

Dr. Tran Du Lich, a renowned economist, said fulfilling the yearly export targets is within Vietnamese businesses’ reach in 2015 as many free trade agreements with other countries have been signed.

He noted that Vietnamese goods now account for a very small proportion of the world’s imports, and that the 10-15 percent export growth rate this year would not be difficult to achieve.

Lich said the global economy is believed to be better in 2015, while the US, one of Vietnam’s key export markets, is predicted to recover well.

The most outstanding feature of Vietnamese goods is that they are essential goods, targeting the middle-class market segment, not high-end products. Consumers, while fastening their belt in economic difficulties, still have to spend money on essential goods.

“The 10-15 percent export growth rate is not an impossible mission and there’s no need to worry about the plan’s implementation,” he said.

Tough domestic market

The biggest problem for Vietnamese businesses, according to Lich, lies in the domestic market. There are too many difficulties which would hinder the development of Vietnamese businesses, including bad management and trade fraud.

The director of a Hanoi-based private company said the availability of low-quality Chinese goods in Vietnam under the cloak of Vietnamese goods is his biggest concern. He said that Chinese counterfeit and low-quality cheap goods would kill Vietnamese goods, sooner or later.

Meanwhile, Lich pointed out that Vietnamese goods are inferior in the home market because Vietnamese cannot control the distribution network.

“The weak distribution network is one of the biggest problems of Vietnamese businesses,” Lich noted, expressing his concern that many Vietnamese-owned distribution chains have been transferred to foreign investors, thus making it more difficult for local businesses to bring their products to consumers.

Vietnamese businesses to return

Lich classified Vietnamese businesses into three groups. The first comprises large corporations with healthy financial capability. The second includes businesses which still exist thanks to preferential loans and the government’s support programs. The businesses of the third group are on the verge of bankruptcy and they still cannot see the light at the end of the tunnel.

However, Lich is optimistic about the recovery of the national economy in 2015.

Dr. Tran Sy Chuong, also a renowned economist, noted that the drop in oil prices will help businesses recover and encourage start-ups to join the market.

TBKTSG