Policy advocacy is the biggest weakness of Vietnamese business associations, according to a survey released on January 25 by the Vietnam Chamber of Commerce and Industry (VCCI).

Policy advocacy refers to advocacy tactics, strategies and initiatives which target changes to policies and legislation.

Only 44 percent of interviewed associations reported participating in policy advocacy activities, while 56 percent admitted they had never advocated.

"This is a sad reality, as policy advocacy is considered one of the most important functions and responsibilities of an association and aims to effectively protect members' rights and interests," said a VCCI representative.

Only 38 percent of associations said that their policy advocacy activities were effective, while 53 percent were unsure and 2 percent judged their activities ineffective.

On the bright side, 85 percent of surveyed associations said they had organised dialogues with authorities to address their major concerns in taxes, land and natural resources management and finances and 73 percent of associations had collected their members' opinions on how to improve the domestic business environment.

"The role of associations has become increasingly important," said Dau Anh Tuan, deputy head of VCCI's Legal Department and a member of the surveying team.

However, local associations were stuck in a vicious cycle, Tuan said, as insufficient financial capacities and a shortage of materials caused associations many difficulties in attracting skilled personnel. Without skilled human resources, it was hard for associations to offer professional and quality services for members. Failures to draw new members resulted in capital shortages, holding back operations.

He called for the State and sponsors to provide financial assistance that could help associations improve their corporate governance. "Closer co-operation between associations is also necessary," he said.

Vietnam Steel Association chairman Pham Chi Cuong agreed that associations have encountered many challenges, with financial shortages being one of the most serious.

Cuong emphasised the importance of issuing a Law on Associations that could help facilitate the development of local associations.

The survey, conducted from July to September, interviewed 78 associations nation-wide. -VNA