Recommendations made to forge stronger FDI-domestic business links

(VOVWORLD) - The Vietnamese business community is growing rapidly and driving national economic growth. But links between domestic and foreign businesses remain weak making growth uneven.
Recommendations made to forge stronger FDI-domestic business links - ảnh 1The mid-term Vietnam Business Forum (VBF) 2018 opened in Hanoi on July 4 

According to the Ministry of Planning and Investment, 128 countries and territories are investing in Vietnam with more than 26,000 FDI projects and total registered capital of 326 billion USD. The FDI sector makes up a quarter of total social investment and one fifth of the GDP, contributes nearly 73% of the total export value, and provides 3.6 million direct jobs and from 5 to 6 million indirect jobs.

Loose links between domestic and foreign enterprises

Minister of Planning and Investment Nguyen Chi Dung said FDI enterprises have had an impact on all economic sectors through capacity building, job generation, introducing advanced technology and international business standards. Since foreign companies came to Vietnam 30 years ago, Vietnamese enterprises have had to adapt to international completion, but connections between domestic and foreign enterprises have not developed to join the global value chain as expected. Minister Dung said: “Indexes measuring technology acquisition and development remain low for Vietnamese enterprises making it difficult for them to connect with FDI enterprises. There is a gap. FDI enterprises have more advanced technology. They need to inspire and connect with Vietnamese enterprises to help the Vietnamese economy grow sustainably.”

Tomaso Andreatta, Co-chairman of the Vietnam Business Forum Consortium’s Management Board said Vietnamese enterprises are small and lack experience in marketing their products. That’s why foreign enterprises connect with foreign suppliers instead of supporting Vietnamese suppliers.

Domestic, foreign enterprises urged to increase cooperation

The Minister of Planning and Investment urged FDI enterprises to help Vietnamese enterprises to participate in value chains and urge domestic enterprises to change their mindset toward modern management models, acquire advanced technology, and improve their skills, capacity, product quality and competitiveness. The Minister asked the government to take steps to foster links between these enterprises.

Foreign experts said Vietnamese enterprises need more support to improve their competitiveness by enhancing management and adopt new technologies. He said easing taxes and customs burdens will liberate resources and enable local enterprises to invest in knowledge and technology and attract foreign manufacturers in the domestic market. By doing so, the door will open for cooperation between the two sides. Entrepreneurs stressed the need to narrow the technology gap between domestic and foreign enterprises.