Illustrative photo (Photo: VNA) Hanoi (VNA) - Local private enterprises have improvedtheir productions and operations, but half of them still must take operationaland production loans, according to the Vietnam Chamber of Commerce and Industry(VCCI).
VCCI research surveys show that Vietnameseprivate enterprises had developed robustly since 2000, and they had registeredto operate mainly in sectors of commerce, services and construction.
Few of them had joined the production andindustry sectors, and local private enterprise contribution to the domesticeconomy remained limited, said the VCCI.
According to the survey roughly 50 percent oflocal private enterprises have taken loans. Large firms commonly took bigloans. They have used the loans mainly to stabilise operations, but not toinvest in updating equipment and technology.
At 2 percent, the portion of enterprises usinghigh technology is very low compared to other countries in the region. Smalland medium-sized private enterprises have invested only 0.2-0.3 percent oftheir revenue to technology reform.
Small and medium sized enterprises (SMEs) andprivate firms have paid attention to quality of products and strategies onproducts because of high market demand.
However, SME production has continued a lowtechnology rate and has been mainly based on labour advantages.
Meanwhile, SME managers lack skills, managementknowledge and reform experience, leading to a failure to implement regulationson tax, financial management, labour, product quality and intellectual property.
Dau Anh Tuan, Head of VCCI Legal Department, saidaccording to surveys on annual production and business results of enterprises,65 percent of SMEs and private firms have faced difficulty in seeking forcustomers while 44 percent of them have had obstacles in approaching capital.In addition, they mainly have customers on the domestic market.
Local private firms have not joined deeply globalsupply chains, while the nation has signed free trade agreements with manyother countries, Tuan said.
Vietnamese SMEs and private firms have facedlimitations in approaching international standards in corporate management.Strategies for distribution, communication and trade promotion have notreceived reasonable investment. They have put about 1 percent of their revenueto those strategies, while foreign firms have invested 10-20 percent of theirrevenue in that sphere.
Local firms have also not sufficiently researchedpotential markets, leading to losses, he said.
Experts expect that the Law on Support for Smalland Medium Sized Enterprises will partly contribute to the improving businessenvironment and encouraging development of private enterprises.
Especially, the law will have indirect supportsrelated to credit for local SMEs and private firms.-VNA
VCCI research surveys show that Vietnameseprivate enterprises had developed robustly since 2000, and they had registeredto operate mainly in sectors of commerce, services and construction.
Few of them had joined the production andindustry sectors, and local private enterprise contribution to the domesticeconomy remained limited, said the VCCI.
According to the survey roughly 50 percent oflocal private enterprises have taken loans. Large firms commonly took bigloans. They have used the loans mainly to stabilise operations, but not toinvest in updating equipment and technology.
At 2 percent, the portion of enterprises usinghigh technology is very low compared to other countries in the region. Smalland medium-sized private enterprises have invested only 0.2-0.3 percent oftheir revenue to technology reform.
Small and medium sized enterprises (SMEs) andprivate firms have paid attention to quality of products and strategies onproducts because of high market demand.
However, SME production has continued a lowtechnology rate and has been mainly based on labour advantages.
Meanwhile, SME managers lack skills, managementknowledge and reform experience, leading to a failure to implement regulationson tax, financial management, labour, product quality and intellectual property.
Dau Anh Tuan, Head of VCCI Legal Department, saidaccording to surveys on annual production and business results of enterprises,65 percent of SMEs and private firms have faced difficulty in seeking forcustomers while 44 percent of them have had obstacles in approaching capital.In addition, they mainly have customers on the domestic market.
Local private firms have not joined deeply globalsupply chains, while the nation has signed free trade agreements with manyother countries, Tuan said.
Vietnamese SMEs and private firms have facedlimitations in approaching international standards in corporate management.Strategies for distribution, communication and trade promotion have notreceived reasonable investment. They have put about 1 percent of their revenueto those strategies, while foreign firms have invested 10-20 percent of theirrevenue in that sphere.
Local firms have also not sufficiently researchedpotential markets, leading to losses, he said.
Experts expect that the Law on Support for Smalland Medium Sized Enterprises will partly contribute to the improving businessenvironment and encouraging development of private enterprises.
Especially, the law will have indirect supportsrelated to credit for local SMEs and private firms.-VNA
VNA
