Firms thrive in face of global competition

Business management has faced many challenges with many Vietnamese enterprises deeply entangled in the global economy, according to participants at a special economic dialogue held in Ha Noi last Friday.

Speaking at the event entitled Global Economic Trends and Business Leadership in Viet Nam, Deputy Prime Minister Nguyen Thien Nhan confirmed that, despite difficulties, Viet Nam had retained a stable economic growth rate with high foreign direct investment capital in comparison to other developing countries after the world economic crisis.

GDP growth in the third quarter was 7.18 per cent and this year’s GDP was expected to reach 6.7 per cent. Export turnover in the first eight months of 2010 was US$44.5 billion, an increase of 19.7 per cent over the same period last year.

These positive numbers could create opportunities for Viet Nam to export to both developed and developing economies as well as attract FDI flows. Nhan attributed these successes to the country’s stable political system and to the plentiful and low-cost labour force that has increasing access to new knowledge.

However, he said, the challenges Viet Nam was facing included energy shortage, environmental pollution, shortcomings in urban planning and management, traffic congestion and macroeconomic instability in inflation, exchange rate and interest rate.

To resolve these issues, Nhan urged economic specialists to provide suggestions to the Government so that it can help leaders remain aware of new information and global trends.

Ashok Sud, CEO of Standard Chartered Bank in Viet Nam, Laos and Cambodia said leaders emphasised leadership and immediate action. According to Sud, businesses and countries alike needed three types of capital: financial, human and management gurus.

Dean of Harvard Kennedy School of Government David T Ellwood said the world faced an enormous economic crisis, severe climate change and natural disasters and that these issues require governments, businesses and ordinary people to act immediately and efficiently to reduce the cost and impact of those.

Participants of the event also discussed the need for large public companies to guide private companies as they entered the market. — VNS

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs