VCCI President Vu Tien Loc: High time for Vietnamese entrepreneurs to reach global standards

On the occasion of Vietnam Entrepreneurs Day (Oct 13th), President of Vietnam Chamber of Commerce and Industry (VCCI), PhD Vu Tien Loc, shares his view on “the spirit of a warrior" that every entrepreneur should have.

On the occasion of Vietnam Entrepreneurs Day, what message would you like to send to the business community in general and business readers of TheLEADER in particular?

PhD Vu Tien Loc: We are living in an era of medium, small and micro enterprises and the last of these firm types is an essential subject in the global market. For micro firms, things will not happen in the old way. Looking ahead, they can flourish on the basis of the Internet. Micro-enterprises can also expand as they sell their products and services to the world with a high added value.

As a result of the internet revolution and government policies supporting the growth of e-commerce, smaller enterprises are no longer insignificant. Rising scale, improved standards and continuous innovation can help them succeed.

For example, the Government has once again affirmed the necessity to reach the OECD (Organization for Economic Cooperation and Development) standards in Resolution No.19.

It is said that the competitiveness of Vietnamese enterprises is gradually diminishing. What do you think?

PhD Vu Tien Loc: I do not think it is “gradually diminishing”. I think it is more correct to say that stronger competition and improved competition have done more to reveal the weaknesses of Vietnamese enterprises.

The global economy is changing, especially with the internet revolution and the reversal of FDI and trade. Enterprises will stand and develop if they can adapt.

But do you think the size of Vietnamese enterprises still seems small in the current competitive environment?

PhD Vu Tien Loc: Business scale is less worrisome now. The main issue is whether they live up to the global standards. Thanks to the advancement in technology and internet connection, small and medium enterprises can also enter the global market. Therefore, living up to the international standards is a requirement for any firm.

The principle behind satisfying international standards is transparency, professional management and modern technology application.

How does the elimination of obstructive business administrative red tape affect the business environment?

PhD Vu Tien Loc: Recently, the Government has asked authorized agencies to reduce the number of business licenses by at least 30% to 50%. The Ministry of Industry and Trade has set a path to cut nearly 700 business conditions, nearly half the current number.

This figure, according to a survey by VCCI and the Central Institute for Economic Management, is attainable. Thus, such series of action and direction are bold and are following the right direction. If all those are realized, it will make a significant move for the business environment in Vietnam.

Besides, the Party continues to implement anti-corruption programs. There is no exception for anti-corruption, and the controversial incidents of the past are now exposed. That determination has greatly enhanced the belief for the people and firms.

Thank you very much!