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 Government agencies

 

  • Business Development Services have just become popular in the last few years. Decree 87 issued in 2003 is the first legal document that recognizes and regulates consulting activities. Government officials usually perceive BDS as a regular service industry like catering or tourism, and there is no clear development strategy. In my view, BDS should be considered a knowledge industry that provides inputs for other manufacturing and service industries. The Enterprise Law issued five years ago has significantly increased the number of newly registered enterprises, but by now, the effect of this Law has started to decline. To give the corporate sector another impetus for growth and competitiveness, the Government needs to make another move. In my opinion, a BDS development strategy or paper could be the right tool. I strongly believe that the Government needs a policy to further develop BDS, perhaps by offering vouchers. Obviously, any support policies should be in conformity with commitments to AFTA or the upcoming WTO accession.
    From the demand side, I believe that the majority of businesses understand the need and importance of using BDS, but the use of BDS is still limited because businesses lack confidence in the quality of services provided and are concerned about the risk of disclosing their company information. From the supply side, most consulting companies in Vietnam are not yet professional services providers. There are many retired officials now working as consultants; they rely heavily on personal contacts and relationships, but less on professional competency. For example, a retired official working as a consultant may have early access to information about upcoming import-export policies or a new road to be built, and then give out this information to businesses as "consulting services”.
    To improve the BDS industry, the State should have regulations on professional and ethical standards. In addition, pubic information should be generally disclosed and available in a transparent manner.

Mr. Tran Kim Hao – Chief Editor of Economic Management Magazine,
the Central Institute for Economic Management.


  • Many Vietnamese SMEs do not recognize the importance of information. For example, many export businesses have very little knowledge about quality requirements or packaging preferences in their product markets. To address this issue, the Government as well as BDS providers should pay more attention to awareness raising activities to introduce more BDS to businesses. For example, we actively marketed our services through direct mail, fax and email to over 15,000 businesses last year. The most important thing in awareness raising is to avoid providing generic information and instead to communicate value and focus on measurable benefits.
    The BDS market in Vietnam is growing fast and the State's management is lagging behind. Currently there is no comprehensive database of BDS suppliers and no one knows exactly how many consulting service providers, including local and foreign, are operating in the country. Thus, potential customers of BDS do not have sufficient information to select appropriate service providers. I understand that the Ministry of Science, Technology and Environment is going to issue a regulation on consulting services related to quality certification in an attempt to improve the quality of consulting services in Vietnam.

Mr. Tran Dinh Van, Director, Directorate for Standards and Quality (STAMEQ).


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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
Tel: (84-4) 574 3084 - Fax: (84-4) 574 2773 - E-mail: vcci@hn.vnn.vn