There are 12 action programs to help enterprises but these are only indirect assistances. Enterprises themselves should set up their own development strategies.

Many serious common problems of enterprises in integration era are raised at the Meeting “Integration into WTO: Government’s Action Program and Enterprises’ Strategies” held by Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh city on July 13th. In which, the most enormous and complicated issues are the lack of association among enterprises as well as development strategies for integration requirements.

“Associations are numerous but small as an flock of ants,” Mr. Tran Dinh Thien, Deputy Director of the Vietnam Economics Institute told about situation of Vietnam’s enterprises after Vietnam’s WTO accession. He also said that severe lack of labor and unsteady real estate market made it difficult to appeal foreign investment.

“Labor and land markets that are foundation market to appeal foreign partners are not targeted to improve but high-rank markets such as stock market are developed vainly. Obviously, relationship between enterprises are too fragile. If the current situation still keep going, this relationship will break off soon,” he concluded.

Ms Vu Kim Hanh, Vice Chairman of Enterprise Association of Ho Chi Minh City thought regardless of relationship between sectors, enterprises themselves were indifferent to integration process and were not zealous to build up their brands in order to find business opportunities.

She also said that after having brand identity, goods and services of enterprises would be sold at higher price and distribution channels would be expanded because agents usually wanted to sell products with famous brands. She thought securities of these companies would become quickly blue-chip when being listed on stock market. “Enterprises only see in the short term that it takes so much to spread their brands but not understand the long-term benefits,” she added.

Market is not steady

Mr. Le Trieu Dung in Multinational Trade Division of Trade Ministry forecasted in next time the field of management consultant would appeal considerable foreign investment. However, there has not been any document to guide this activity. Moreover, WTO commitments on services include regulations on bank services that stipulate foreign enterprises’ limit of buying share at 30% but services invested heavily such as securities, insurance, and so on do not have restricted rate.

In addition, Ms Nguyen Van Chi, Deputy Head of International Cooperation Department, Ministry of Finance, said one of challenges to Vietnam’s enterprises in integration process was the unsteadiness of market. “Agreements on tariffs of Vietnam and China are useless because too much China’s goods is smuggled to Vietnam,” she added.

Nearly 70 enterprises put hundreds of questions on Government’s assistance for them. Ms Nguyen Van Chi announced that Vietnam’s Government would support enterprises but these were only indirect assistances.

Mr. Hoang Van Dzung, Vice Chairman of VCCI, told Vietnam’s Government carried out 12 action programs to support enterprises. With Program on Administrative Reform, enterprises will save time of waiting and traveling for licenses and permits. Program on Educating, Training, and Developing Human Resources through local associations and authorities organizes training human resources for enterprises.

“Authorities with inefficient management will be partly responsible for unprofitable enterprises. Each enterprise need its own development strategy. The Government will also launch development strategies for enterprises at national level to support them,” Mr. Tran Dinh Thien said.