Nearly one third of businesses withdraw from market
Published: 09/08/2012 07:49
The Party and State have created favourable conditions for business development during Vietnam's renewal process. Over the past two decades, more than 600,000 private enterprises have been set up to operate along with State-owned enterprises (SOEs). About 70 percent of them have kept running well; only 30 percent have had to dissolve or suspend operations with Vietnam travel news.
Some may describe 30 percent of businesses withdrawing from the market as a failure. But in Loc’s view, this is also a common occurrence in the economies of other countries.
Business is not for everyone
Loc argues that in developed economies such as the US and European Union (EU), about 25 percent of businesses often leave the market after three years of operation. “The field of business is not for everyone. Only a few can be really successful,” he says.
The fact that more than two-thirds of businesses are still in operation at the crunch time shows the vitality of local enterprises as well as the effectiveness of incentive policies adopted by the Party and State, he points out.
Loc then emphasizes the need to boost business restructuring, especially at a time when domestic enterprises are suffering from the negative impact of the global economic downturn.
It’s essential to focus on building Vietnamese trademarks, Loc says, noting that some young local entrepreneurs have successfully developed trademarks that are recognized globally.
He speaks highly of businesses that are brave enough to weather the storm caused by market fluctuations. What matters more than just the bottom line is they all want to contribute to the nation’s economic growth, generate jobs and fulfill their social duties and responsibilities.
Businesses need further support
According to Dang Le Nguyen Vu, Chairman of the Trung Nguyen Coffee Group, Vietnam has not yet developed a powerful business contingent, even though the country has many advantages, such as natural resources, geographical location and labour force, compared to many other countries.
To help local businesses iron out snags, Vu says close links should be established among politicians, entrepreneurs, cultural activists and intellectuals, to promote the country's ongoing process of national development and international economic integration.
He proposes three urgent measures to be taken. First, there must be an effective mechanism for businesses to share resources and help each other penetrate foreign markets.
Second, enterprises should be in the vanguard of applying the latest scientific and technological advances and making proposals to political leaders so that they can adopt appropriate policies to give a boost to the national economy.
Third, businesses should take responsibility for educating young people about business operations and inspiring them to get involved in the cause of national construction.
Vu’s views are shared by Nguyen Lien Phuong, Director of the Vietnam LP Business Institute, who says that local businesses should cooperate more closely and effectively as Vietnam is opening its doors to foreign investors.
With regard to the country’s current policies, Phuong says he believes that Vietnamese businesses will be able to hold sway if they know how to overcome challenges and grasp new opportunities.
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