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 development organizations

 

  • In the recent study MPDF and GTZ undertook, we found that 90% of consultants believed the reason that SMEs do not hire consultants is because they do not see the value of consulting services. I believe this is fundamental to understanding the current situation, as it highlights both demand and supply-side constraints.
    On the demand side, while some SMEs may believe the absolute costs of hiring consultants is too high, we know that where they can see a good return on investment they do find ways to invest and grow their business. Consultants have to clearly explain the value of their services. In developed countries there would almost always be a clear business case, capturing the financial and non-financial benefits. This is rarely done in Vietnam, but I believe SMEs will start to demand this before they take on projects to change their business.
    For some businesses, the perceived "lack of value" probably arises from a poor experience with consultants. This may be because the consultants did not do a great job, or because the client's expectations were not managed appropriately. Most consultants have been in business for less than five years, with little experience in marketing their services to SMEs, and often have limited experience in implementing projects through to completion. SMEs themselves may be inexperienced in selecting or managing the consultants effectively, and will be disappointed if they have unrealistic expectations or keep increasing the scope of work.
    Throughout our 10-day Core Consulting Skills Course, we help consultants differentiate themselves by identifying where they can add value by helping the client make a sustainable business change, and developing a simple business case to articulate specific benefits in each project phase. By defining clear quality standards and acceptance criteria when setting up the project, the benefits can be measured and communicated as the project is delivered. Important disciplines like Change Control are needed to manage the inevitable changes in the scope of the assignment. By applying Change Control, consultants can deliver the benefits while managing client expectations so that both parties are satisfied in the end.
    Another important element may be addressing the potential lack of trust of third parties. Most consulting firms in the developed world have an ethical code of conduct, setting out their standards and values around client confidentiality, conflicts of interest, fees, and the professional behavior they demand from their staff. I believe that it will be important for consultants in Vietnam to develop an appropriate code of conduct for their individual firms, and also to discuss and work together to raise professional standards in both conduct and delivery throughout their emerging industry.
    We hope that by raising the awareness of SMEs about how to work with consultants, the level of professionalism they should demand, and supporting the development of professional consulting skills, SMEs will increasingly see the value that consultants can bring.

Ms. Kate Lloyd-Williams, Manager, Consultant Development Program, MPDF.


  • While the overriding principles of BDS market development are easily agreed upon, there is no one single solution to the development of the BDS market. The problems in BDS markets are so diverse and unique, requiring market facilitators to be as innovative as possible. In this field, GTZ, besides doing research, is very committed to working to remove legal constraints in BDS markets we have been doing this in cooperation with the Vietnam Chamber of Commerce and Industry, the Central Institute for Economic Management, the mass media and local partners. We also promote specialized and advanced services like quality management, management training, and the development of new products. Real impacts from our activities can be seen in the increase in the supply of consultants in selected BDS markets like quality management, business information, and management training. Our strong cooperation with the mass media and local partners also pays off with a higher level of awareness about BDS and the actions being taken by the Government to remove legal barriers to BDS market development. The road ahead of us is even more challenging and this will require us to work harder and in a more innovative manner. In this process, we are very open to new initiatives and cooperation with other organizations in order to make BDS markets work much better for SMEs in Vietnam.

Mr. Le Duy Binh, Program Officer, GTZ SME Promotion Project.


  • As a trade promotion organization and a representative body for the Vietnamese business community, the Vietnam Chamber of Commerce and Industry (VCCI) has been actively contributing to the development of a BDS market in Vietnam. VCCI plays a dual role as a BDS facilitator and a direct BDS supplier.
    Our experience shows that BDS providers normally do not adequately assess and understand the BDS needs of businesses activities which are necessary to ensure high quality services delivered. In many cases, BDS providers did not conduct needs assessment before designing their BDS, therefore their services were not always satisfactory.
    Using its advantage as a nation-wide business representative organization, VCCI has been undertaking various programs to improve the capacity of BDS providers through activities such as training of trainers, providing industry information and joint delivery of services.

Mr. Nguyen Viet Phuong, Officer, Business Information Center (BIZIC),
Vietnam Chamber of Commerce and Industry (VCCI).


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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