‘Foreign eagles’ and ‘Viet dragons’ do the 'tango dance' together

Vietnam needs to create favorable conditions for ‘Viet dragons’ and ‘foreign eagles’ to join the "tango dance" that brings benefits to both sides, according to VIetnam Chamber of Commerce and Industry (VCCI) chair Vu Tien Loc.

‘Foreign eagles’ and ‘Viet dragons’ do the 'tango dance' together

Loc, speaking at a workshop some days ago in Hanoi, said he wants to call Vietnam’s enterprises Viet dragons instead of domestic eagles.

Eagle is the word used by Vietnamese experts to refer to large powerful enterprises and investors.

“Vietnamese people are the children of the Fairy and the Dragon,” Loc explained.

Stressing the important role of the private sector, Loc said private enterprises are the ‘star of hope’ of the country. They are ‘Viet dragons’ bearing a Vietnamese identity.

He said that unreasonable views do not truly reflect the position and role of private enterprises. Foreign investments are always appreciated, no matter what their scale and technologies are. Meanwhile, the presence of Vietnamese enterprises is underestimated.

Loc related a story about the US semiconductor industry, led by private enterprises. When the industry was in the danger of becoming uncompetitive with the Japanese semiconductor industry, the US government then placed orders with US businesses to support them.

It helped businesses make investments in technology to improve competitiveness. The solutions successfully helped the country’s industry cement its position.

According to Loc, Vietnam has 6.2 million private businesses, not only 800,000 as reported, if counting in 5.4 million business households, which, by nature, are businesses but have no business registration. As such, Vietnam has 24 businesses per every 1,000 people.

Tran Dinh Thien, former director of the Vietnam Economics Institute, said Vietnam not only needs to prepare nests for ‘foreign eagles’ but ‘Vietnamese eagles’ as well.

He said that foreign invested enterprises (FIEs) which make up 20-22 percent of GDP only, but account for up to 70 percent of total export turnover. FIEs can enjoy the most commercial benefits from Vietnam’s integration efforts.

He believes that it is necessary to change the Vietnamese business development approach. Vietnam needs to rely on domestic strength and economic resources, considering the private sector an important driving force for economic development.

Vietnam’s private businesses attract 85 percent of the labor force and make up 43 percent of GDP. Meanwhile, the figures are just 29 percent for state-owned enterprises and 18 percent for FIEs.

“The presence of private enterprises in the business fields where the State held the monopoly in the past, such as aviation, has made the market more competitive, bringing benefits to consumers,” said Nguyen Thi Luyen from the Central Institute of Economic Management (CIEM).

Vietnam’s private businesses attract 85 percent of the labor force and make up 43 percent of GDP. Meanwhile, the figures are just 29 percent for state-owned enterprises and 18 percent for FIEs.
 

However, the private sector is still at a disadvantage in comparison with other sectors in terms of accessing important resources such as labor, market, business rights and information.

Commenting about the strength of Vietnam’s businesses, Loc said Vietnam is not inferior to other countries in number of enterprises, but in quality.

Vietnam lacks large powerful corporations. Therefore, it is necessary to improve the quality of enterprises and give support to form up large companies.

“We need policies aiming to improve the quality of enterprises rather than increase the number of enterprises,” he said.

What large enterprises need are reasonable institutional regime, and safe, transparent and favorable business environment.

“Preparing nests for domestic eagles means creating a business environment where domestic enterprises feel equality and respect,” he said.

Pham Chi Lan, a respected economist, attributed the gaps between private enterprises and the enterprises belonging to state and foreign-invested economic sector to the lack of a leveling playing field for all economic sectors.

Studies by some institutions have found that the majority of small businesses don’t want to grow into big businesses, which shows the low confidence of the private sector.

“Pervasive, excessive, unjustified and unfair incentives offered to FIEs and crony businesses must be removed,” Lan said.

Pham Dinh Doan, president of Phu Thai Thuc, said in preparing nest for eagles and creating an ecosystem for them, the state needs to plan the development of every business field well. The state acts as chief project manager to assign tasks to large corporations, ministries, branches and localities. This avoids the wasteful use of resources.

Meanwhile, Huong Tran Kieu Dung, vice president of FLC, commented that there was no need to set specific policies for large corporations, but to set general preferential policies for business fields the state wants to encourage investment, especially tourism. 

Duy Anh

Share of female management in FDI highest among Vietnam economic sectors

Share of female management in FDI highest among Vietnam economic sectors

The number of Vietnamese women accounts for half of the labor force but less than one-fourth of overall management roles.

Vietnam’s industrial export still relies on FDI sector

Vietnam’s industrial export still relies on FDI sector

Vietnam posted an estimated trade surplus of $1.3 billion in January, according to a report recently announced by the Ministry of Industry and Trade (MoIT).

 
 

Other News

.
The Prime Minister of drastic actions and breakthrough thinking
The Prime Minister of drastic actions and breakthrough thinking
FEATUREicon  09/04/2021 

Mr. Pham Minh Chinh has taken office as the new Prime Minister of Vietnam. 

Why do Vietnamese PhDs want to write  research articles and not pursue applied research?
Why do Vietnamese PhDs want to write research articles and not pursue applied research?
FEATUREicon  09/04/2021 

Professor Truong Nguyen Thanh says four challenges exist for the development of applied research in Vietnam.

Farmer looks to the internet to improve skills, income
Farmer looks to the internet to improve skills, income
FEATUREicon  08/04/2021 

Phan Van Hung now earns half billion dong a year after studying farming techniques on the Internet.

The politician who goes to wholesale market, wades in water to visit people
The politician who goes to wholesale market, wades in water to visit people
FEATUREicon  08/04/2021 

President Nguyen Xuan Phuc, 67, on April 5, took the oath of office before the National Assembly, people, and voters. This is the first time that an incumbent Prime Minister was elected State President.

Vietnamese enjoy high-end tours at surprisingly low fees
Vietnamese enjoy high-end tours at surprisingly low fees
FEATUREicon  07/04/2021 

Travel firms have been advised to focus on the domestic market for the immediate time. However, they also need to draw up new strategies and new programs to conquer this group of travelers.

Hybrid electric vehicles to account for 30% of market by 2030
Hybrid electric vehicles to account for 30% of market by 2030
FEATUREicon  07/04/2021 

Hybrid electric vehicles (HEV), which have maximum fuel economy, low emissions and smooth operation, are suited to Vietnam’s climate and transport conditions, experts say.

Sai Gon’s ‘knights' offer aid to people in distress
Sai Gon’s ‘knights' offer aid to people in distress
FEATUREicon  07/04/2021 

The kindness of "night-road knights" has made a massive contribution to reducing traffic accidents, and has won acclaim from the people and the government of Binh Tan District, HCM City.

ICT Minister answers key questions about digital transformation
ICT Minister answers key questions about digital transformation
FEATUREicon  06/04/2021 

Minister of Information and Communications Nguyen Manh Hung posed key questions and outlined solutions to digital transformation issues at a recent meeting with officials of the southern province of Ba Ria - Vung Tau.

National Assembly - Highest organ of State power, highest representative body of the people
National Assembly - Highest organ of State power, highest representative body of the people
FEATUREicon  06/04/2021 

Within the State apparatus of Vietnam, the National Assembly (NA) is the highest representative body of the people and the highest organ of State power of the Socialist Republic of Vietnam.

Vietnamese engineers register inventions in the US
Vietnamese engineers register inventions in the US
FEATUREicon  06/04/2021 

The strategy of mastering the high-tech industry at a world-class level has been the foundation for Viettel Group’s engineers to now have four patents protected as intellectual property in the US.

Prices surge on stock market, VN Index reaches record high
Prices surge on stock market, VN Index reaches record high
FEATUREicon  05/04/2021 

Many new investors have made high profits after the stock market reached a record high.

From Tho Nguyen to Ryan Kazy: high profits are made from YouTube content for children
From Tho Nguyen to Ryan Kazy: high profits are made from YouTube content for children
FEATUREicon  06/04/2021 

Developing content on YouTube has proven to be very profitable for young creators, from a 29-year-old Vietnamese girl to a 9-year-old boy from Texas.

Wind power: investors wait for PM’s decision on Feed-in-Tariff price
Wind power: investors wait for PM’s decision on Feed-in-Tariff price
FEATUREicon  06/04/2021 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

"VietNamNet has a great opportunity to take the lead in digital technology"
"VietNamNet has a great opportunity to take the lead in digital technology"
FEATUREicon  05/04/2021 

Minister of Information and Communications Nguyen Manh Hung said that the digital age is coming and it will fundamentally change our lives. VietNamNet should be a newspaper that applies the most of the new technology.

Local authorities struggle to stop real estate bubble
Local authorities struggle to stop real estate bubble
FEATUREicon  03/04/2021 

The real estate market remains feverish not because of high demand and short supply, but because of speculation, experts have said.

Will Vietnam compete with Thailand, Indonesia to manufacture electric cars?
Will Vietnam compete with Thailand, Indonesia to manufacture electric cars?
FEATUREicon  04/04/2021 

In Southeast Asia, Thailand and Indonesia are running a race to become electric car manufacturing centers of the region and the world. Will Vietnam join the race?

Vuong Dinh Hue held many midnight meetings before becoming NA chair
Vuong Dinh Hue held many midnight meetings before becoming NA chair
FEATUREicon  02/04/2021 

Having "gone through the mill" when he was Minister of Finance, Deputy PM, and Hanoi Party Committee Secretary, Vuong Dinh Hue has left an impressive legacy as a leader who took serious action on many matters.

Intensive-care physician faces daily 'battle of wits' with critical Covid-19 cases
Intensive-care physician faces daily 'battle of wits' with critical Covid-19 cases
FEATUREicon  02/04/2021 

Dr Pham Van Phuc has been honored as one of the 10 outstanding young faces of Hanoi in 2021.

Students fascinated by traditional music instruments after schools introduce new lessons
Students fascinated by traditional music instruments after schools introduce new lessons
FEATUREicon  02/04/2021 

Tran Hai Dang, deputy director of the Vietnam Institute of Musicology, says that many students are familiar with the western guitar, violin and piano but lack knowledge about traditional Vietnamese instruments.

Big businesses pour billions of dong into land purchases in Da Nang
Big businesses pour billions of dong into land purchases in Da Nang
FEATUREicon  01/04/2021 

While other land markets are hot, Da Nang remains very quiet, prompting many investors from Hanoi and HCM City to collect land plots in advantageous positions in "bottom fishing" deals.

 
 
 
Leave your comment on an article

OR QUICK LOGIN