‘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

.
How long does AstraZeneca vaccine protect patients?
How long does AstraZeneca vaccine protect patients?
FEATUREicon  10/03/2021 

Vietnam will use 60 million doses of AstraZeneca vaccine this year. How long does the vaccine’s effectiveness last?

Retail market slumps, global supermarket chains leave Vietnam
Retail market slumps, global supermarket chains leave Vietnam
FEATUREicon  10/03/2021 

Big C, Metro, Tran Anh and Vien Thong A, once powerful retail giants, have disappeared after takeover deals.

The female successors of Vietnam's tycoons
The female successors of Vietnam's tycoons
FEATUREicon  10/03/2021 

Despite their young ages, a number of women hold important positions in large corporations and own assets worth trillions of dong.

Tourists do field work, Hoi An locals make a fortune
Tourists do field work, Hoi An locals make a fortune
FEATUREicon  09/03/2021 

One of the joys of tourists coming to the ancient town of Hoi An in the central province of Quang Nam is to ride a buffalo and learn to farm.

Water puppetry made from discarded materials
Water puppetry made from discarded materials
FEATUREicon  09/03/2021 

Mr. Ho Van Than (60 years old, Quynh Thien ward, Hoang Mai town, Nghe An province) is very admired for his flair in turning scrap shops into riveting electric puppets.

Covid-19 and digital transformation
Covid-19 and digital transformation
FEATUREicon  09/03/2021 

Digital transformation is keeping life going but in a ‘new normal’ state.

Covid-19 vaccinations begin in Vietnam
Covid-19 vaccinations begin in Vietnam
FEATUREicon  08/03/2021 

On the morning of March 8, the first Vietnamese were injected with Covid-19 vaccine at four places: 

Physician spends 100 unforgettable days at COVID-19 epicenters
Physician spends 100 unforgettable days at COVID-19 epicenters
FEATUREicon  09/03/2021 

In hermetic protective clothing, Tran Anh Tu, a physician from Hanoi, spent memorable days at pandemic-hit areas with fast meals and late meals at night.

6th grader's website and its unexpected success
6th grader's website and its unexpected success
FEATUREicon  08/03/2021 

A free website with a homework search engine was launched in 2013 by a boy in the 6th grade.

Trees thousands of years old – treasures beyond price
Trees thousands of years old – treasures beyond price
FEATUREicon  08/03/2021 

No measure of money can be exchanged for the mark of time. These trees, with a lifetime of over 1,000 years, are associated with national culture and history.

Another road for Covid-19 vaccines
Another road for Covid-19 vaccines
FEATUREicon  07/03/2021 

Western nations have the capacity in terms of economic potential and the legal and moral aspects to promote access to vaccines on a global scale.

Digital transformation and the digital economy
Digital transformation and the digital economy
FEATUREicon  06/03/2021 

The fourth industrial revolution, digital transformation and the digital economy are mentioned many times in documents of the 13th Party Congress. 

Vaccine nationalism
Vaccine nationalism
FEATUREicon  06/03/2021 

Vaccine nationalism has become alarming, as politicians have criticized the previous US President Donald Trump for his "America First" doctrine.

Online stalls help ‘rescue’ farm produce in North
Online stalls help ‘rescue’ farm produce in North
FEATUREicon  06/03/2021 

Hai Duong’s first farm produce, including cabbage and chicken eggs, are being sold on voso.vn, an e-commerce website, while an online stall distributing Hai Duong’s produce has been set up.

Are Vietnam’s e-commerce platforms inferior to foreign competitors?
Are Vietnam’s e-commerce platforms inferior to foreign competitors?
FEATUREicon  08/03/2021 

Some reports show that Shopee has left its rivals far behind, and that Tiki is competing equally with Lazada, while Sendo is in the fourth position.

Carer for cemetery devotes daily life to martyrs
Carer for cemetery devotes daily life to martyrs
FEATUREicon  08/03/2021 

For the last 40 years, she comes to clear grass, burn incense, and sit and talk at the martyrs’ graves at the cemetery every day.

Vietnamese rush to buy cars as prices fall
Vietnamese rush to buy cars as prices fall
FEATUREicon  05/03/2021 

Though the automobile market has become big enough for manufacturers to step up domestic production, industry policies remain unencouraging.

Vietnamese professor in the UK and memories of Vietnam
Vietnamese professor in the UK and memories of Vietnam
FEATUREicon  05/03/2021 

Prof. Duong Quang Trung, Research Chair of the Royal Academy of Engineering and Professor at Queen's University Belfast in the UK, had a talk about science and other topics with VietNamNet.

Fleeing the city, woman moves to mountainous area to farm, be close to nature
Fleeing the city, woman moves to mountainous area to farm, be close to nature
FEATUREicon  06/03/2021 

Leaving the urban life and a highly paid job behind, May chose to settle in a mountainous area, and enjoy gardening and farming.

When the flag of institutional reform is raised
When the flag of institutional reform is raised
FEATUREicon  05/03/2021 

Institutional reform and improving the business environment reflect the Government's enduring determination over the years, benefiting people and businesses.

 
 
 
Leave your comment on an article

OR QUICK LOGIN