A garment-textile factory in Vietnam (Photo: VNA)
Hanoi (VNA) – Links need to be strengthened between Vietnamese businesses and foreign firms to help domestic companies fully tap opportunities arising from the regional and international integration process.

Economic experts proposed this at the Vietnam Business Forum held recently in Hanoi, which focused on policy dialogue between the Government, domestic and international business communities aimed at boosting the competitiveness of Vietnamese enterprises amid global integration.

Reports presented at the forum said Vietnam is home to a great number of small-and medium-sized enterprises (SMEs), accounting for 96-97 percent of the total. They play an important role in the country’s economic development.

However, private enterprises, especially SMEs, remain disconnected from global value chains and have yet to cooperate with foreign direct investment (FDI) businesses. This situation makes it difficult for them to compete with foreign firms, and even lose ground in the domestic market.

Participants stressed the importance of outlining measures to balance the benefit between domestic and foreign businesses, especially in the context of international integration and the increasing number of foreign goods entering the Vietnamese market.

President of the Vietnam Chamber of Commerce Industry (VCCI) Vu Tien Loc said Vietnamese and FDI firms need to expand their links to form business alliances to help domestic firms enter the value chains of transnational groups and FDI enterprises.

The Government should issue policies to assist companies during the intgegration process, Loc stressed, saying that this will encourage domestic firms to speed up the renovation and restructuring process in order to join business alliances.

According to Sherry Boger, President of the American Chamber of Commerce in Vietnam (AmCham) , Vietnam has been successful in attracting FDI capital, with two-thirds of Vietnam’s export turnover sourced from FDI firms operating in the country.

She noted that FDI enterprises benefit the most from export growth in Vietnam, while the number of Vietnamese firms benefiting from it remains negligible.

AmCham’s members are working with the VCCI to search for capable Vietnamese partners to meet the requirements necessary to develop supply chains, Boger said.-VNA