Economist Dr. Le Dang Doanh says Vietnamese enterprises need to reevaluate their operations and focus on strong points while discovering new potentials.
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| Economist Dr. Le Dang Doanh |
He feels that to cope with approaching economic changes action will be necessary.
At an international seminar on “Competitiveness and Company Strategies” chaired by Professor Michael Porter in Hanoi November 29, economist Le Dang Doanh spoke with DTiNews on the current competitive capacity of Vietnamese enterprises.
How do you rate the current capacity of Vietnamese enterprises?
The situation is different at each enterprise. I see that those producing for exports are doing very well. They are creative, active and so has great competitiveness capacity. However, monopoly or state enterprises like Electricity of Vietnam (EVN) are very stagnant. EVN always faces various problems including supply shortages, low quality and electricity loss. They need to work and find a solution to address their problems.
It is said that the time after a crisis creates both advantages and disadvantages for enterprises. What do you think?
After getting through a challenge, a strong person will grow stronger but an weak one will fall.
To be able to be a survivor, local enterprises must restructure and regain their strong points and discover new potentials.
I see some of the biggest difficulties that they are now facing include high loan rates, fluctuating exchange rates, unstable electricity supply. I hope that local authorities will help enterprises to solve these problems.
Compared to other countries, what are the advantages of local enterprises competing in Vietnam?
There is a stable political environment and society, a strategic location and a big and cheap human resource market. Many foreign investors are coming to Vietnam to take advantage of these things.
However, if this big human resource is not trained properly, this advantage will turn into a disadvantage.
The general difficulties that are hindering competitive capacity now include instability in the macro-economy, high inflation, varying exchange rates, and especially high bank loan rates.
Do you have any ideas to help improve the competitive capacity of Vietnam?
I think they should concentrate on 4 areas. Firstly, the need to stabilize the macro-economy, reduce inflation, lower bank loan rates and guarantee foreign exchange rates.
I think Vietnam can lower bank loan rates by reducing inflation. Also, monetary policy should be informed and announced.
Vietnam must also synchronize infrastructure and supply enough electricity. The labour field needs better training and finally there are administrative formalities. 65% of enterprises say that they are having to pay additional fees for administrative procedures.
Thank you