How the economy of Vietnam and the world economy will be shaped, how business leaders will implement their development strategies and what the Vietnam Chamber of Commerce and Industry (VCCI) will do to better support the business community in itsnext term (VI) are some of the issues about which Vietnam Business Forum interviewedMr Hoang Huy Ha, Member of the VCCI Executive Board of the 5th term as well as the Member of the Board of Directors of the Bank for Investment and Development of Vietnam (BIDV). Ha Anh reports.
In the perspective of a business leader, do you have any review about the position and role of VCCI, especially in business support activities over time? In term VI, what kinds of measures should be considered to further unite the business community?
Since Vietnam joined the WTO and the trade and investment activities of Vietnam have been growing, VCCI has proved its performance to become a link for the business community, which helps gather the Vietnamese business community as well as open more investment and business opportunities in line with the trend of international integration. VCCI has taken the role as a channel to provide information, supporting Vietnamese businesses to take investment opportunities and gain partners, and conducts activities in investment promotion, trade and service between the Vietnamese businesses and foreign businesses, which enables the businesses to make investments abroad.
In the next term, to further promote its reputation, VCCI should implement a number of measures to enhance its role, connecting the business community in a more organised manner to ensure the implementation of the government’s direction, as well as the commitment to the partnership country. Besides, the VCCI should often organize the trade and investment promotion activities for Vietnamese enterprises in potential markets, promoting dialogues between business and government leaders and ministries, and fostering connecting activities among different types of businesses, such as large enterprises with state ownership or by the government’s control as well as the small and medium enterprises for mutual assistance in the development processes. VCCI also needs to prove its more efficient support on the side of business by making and updating research and surveys more frequently on investment promotion in foreign countries, as well as updating market information, regulations and laws of the important markets for Vietnamese enterprises. On policymaking, the organization should make more regular reports about information relating to the difficulties and problems of Vietnamese enterprises to offer timely recommendations to the Vietnam government, authorities and functional organizations of the partner countries to find solutions. Finally, the VCCI should be always on the side of businesses to protect their legitimate rights and resolve disagreements and disputes in business relations internally and externally.
As a member of the Executive Board of VCCI term V, what is your review about the development of the Vietnam’s business communitynow? To join hands to remove difficulties for enterprises, what should VCCI do?
After years of high growth, Vietnam’s economy since 2010 fell into difficulties due to the impacts of the global financial crisis and the world economy’s downturn. Although the government has introduced several measures to stabilize the macro economy and achieved some of positive results, Vietnam’s economic growth remains low compared to the initial plan and is now at the lowest level after one decade. The number of businesses dissolved, suspended or facing bankruptcy has increased and the remaining businesses are now facing many difficulties, causing production delays. According to the data compiled by the Research Centre of BIDV, the number of dissolved and suspended businesses has increased for the first 9 months of 2013, with 42,459 businesses dissolved, up 12.8 percent compared to the same period in 2012, which puts the number of dissolved and suspended enterprises up to 194,040 from 2010 to present. Meanwhile, for the first 9 months of the year, there have been 58,231 newly registered businesses, up 10.8 percent over the same period.
Given the challenges of the businesses, a series of recommendations have been made. The first solution focuses on demand stimulation by increasing government spending, expending credit, rescheduling loans, and reducing interest rates, exempting and rescheduling corporate income tax and VAT. The second solution aims to reduce supply by providing protection, and increasing technical barriers.
Thus, in order to jointly solve the problems for businesses, VCCI needs to more frequently promote activities related to business and investment by making surveys, organizing trade fairs and conferences to capture the difficulties and problems of the Vietnamese enterprises to help the government recommendations and the authorities take measures to remove the difficulties promptly.
In recent years, BIDV has gained larger role and influence on the financial and security markets of Vietnam, so could you please share about the upcoming development strategies to help BIDV continue to be one of the leading financial institutions in Vietnam?
Recognizing our position and influence in the financial and security market as well as following our vision of becoming one of the leading financial institutions in Vietnam, BIDV was aware early on of the importance of sustainable development strategies. In the 2020 development strategy of BIDV, the bank determines the sustainability and efficiency associated with the scale of growth as its top priority, so we do not focus just on financial goals, which are considered outcome measures, but on non-financial goals, which are driving forces for the financial goals; the measures relate to the customer, internal process and training and development to comprehensively improve the capacity of the bank.
In each specific goal, the BIDV always determined to not only ensure the operational requirements in accordance with the State Bank of Vietnam and the government, but also maximize the application of international standards in the banking activities to improve its competitiveness and maintain its position as one of the large-scale, influential and efficient banks in the system.
Could you please share some opinions or action plans you would recommend to the VCCI’s Standing Committee term VI?
The Bank for Investment and Development of Vietnam (BIDV) and I myself always support and will actively participate in activities organized by VCCI for the development of the Vietnamese business community.