THE BUSINESS INFORMATION CENTER AT THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

No.4 (7) October 2004

   

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Issue No. 22
Access to land
:: Article  :: Viewpoints
 

Issue No. 21
The state capital
investment corporation
:: Article  :: Viewpoints
 

Issue No. 20
Streamlining the
business startup process
:: Article  :: Viewpoints
 

Issue No. 19
Effective Implementation of the new Enterprise and Investment Laws
:: Article  :: Viewpoints
 

Issue No. 18
Starting a business in Vietnam
:: Article  :: Viewpoints
 

Issue No. 17
Streamlining
Business Licensing
:: Article  :: Viewpoints
 

Issue No. 16
Women's entrepreneurship
:: Article  :: Viewpoints
 

Issue No. 15
Private Credit Bureaus
:: Article  :: Viewpoints
 

Issue No. 14
Efforts in improving business environment
:: Article  :: Viewpoints
 

Issue No. 13
Corporate governance
:: Article  :: Viewpoints
 

Issue No. 12
The common investment law
:: Article  :: Viewpoints
 

Issue No. 11
Private sector firms
:: Article  :: Viewpoints
 

Issue No. 10
The unified enterprise law
:: Article  :: Viewpoints
 

Issue No. 9
Investment incentives
in Vietnam
:: Article  :: Viewpoints
 

Issue No. 8
Business Environment in Vietnam - Overview 2004
:: Article  :: Viewpoints
 

Issue No. 7
Business Development Services
:: Article  :: Viewpoints
 

Issue No. 6
Local governance
& Economic growth
:: Article  :: Viewpoints
 

Issue No. 5
SOE Valuation
:: Article  :: Viewpoints
 

Issue No. 4
Corp. Social Responsibility
:: Article  :: Viewpoints
 

Issue No. 3
Trademark protection
:: Article  :: Viewpoints
 

Issue No. 2
The stock market
:: Article  :: Viewpoints

 

Issue No. 1
The revised draft Land Law
:: Article  :: Viewpoints

 

 

VIEWPOINTS
 

... of businesses

 

  • Business development services are invisible products, and it is not easy to judge their quality as we do with other goods. When we select BDS suppliers, we can only make a judgment on their quality of services based on the reputation of the firm and the presentation made by the consultants. The need for services on the part of Vietnamese firms is quite significant. In our case, we have been using various consulting services including factory layout design, construction monitoring, legal advice for our trademark, auditing, financial services and HR consulting. To be very honest, however, we have yet to be fully satisfied by any of the services we have contracted. Take the auditing consultant as an example – we expected that their "management letter" (advice to the company's management) would make concrete recommendations on management issues, not just identify the accounting and bookkeeping issues that we had. Another example occurred with a well-known intellectual property legal consulting firm that we used. This company did not act professionally when dealing with conflict of interest issues among their clients.
    One reason for the low quality of consulting services is the lack of professional training and experience among Vietnamese consulting firms. Many local consulting firms were founded by individuals who previously worked for foreign consulting firms based in Vietnam; as consultants, they often specialized in one or two areas. Now these individuals are running consulting companies that offer full services, but often they lack the expertise to do so. As a result, they cannot ensure the overall quality of a consulting project from project kick-off through implementation, monitoring and completion. Furthermore, in one of our experiences, the understanding about the scope of work was different between our company and the consultants, and thus we were not fully comfortable with the results at the end of the project. Consultants often do not pay attention to after-sales service – they just go after short-term profits for each project. Perhaps they have forgotten that in this special services sector, it is important to satisfy the client because client satisfaction is the best marketing tool for a consulting firm.
    In general, I think that consultants are not up to date with the development of the business sector. Consultants should improve their capacity both in terms of professional knowledge and business delivery to keep up with foreign consulting firms. They should have longer-term business visions and live up to high business standards and ethics. Only by doing so will this sector be able grow to meet the increasing demand from businesses.

Ms. La My Hoan, Chief Executive Officer, Tien Hung Joint Stock Company.


  • When businesses reach a certain level of growth, more management systems-related problems develop that are beyond their capacity to solve. In this case, the use of consulting services is a necessary and efficient solution. Even in cases where businesses may have the expertise to resolve the problems by themselves, they usually are driven by day-to-day business activities that are geared towards more short-term profit and may not necessarily be well positioned to carry out the needed changes. Furthermore, independent outside consultants have a more objective approach to solutions which are not biased by the internal politics of the business.
    Taking our company, which has about 1,500 staff as an example, we have been using human resources consultants to develop a staff handbook, job descriptions, and company policy, as well as executive search services for key management positions, including foreign staff. In general, we are happy with the quality of these services. However, a very common shortcoming of consultants is that they normally do not fully understand, and then take into account, the need of a business to ensure uninterrupted operations while implementing the consultants' suggestions. In addition, as there could often be a number of options to resolve the same business issue, the consultants need to understand their clients very well to recommend the best solution.

Mr. Le Le Tuan, HR and Administration Manager,
AA Design and Construction Corporation.


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Publisher: Dao Tuan Dung - Director of BIZIC - VCCI
Office: 5th floor - International Trade Center - No. 9 Dao Duy Anh Str., Hanoi
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