Friday, October 28 2016


VN firms must adapt to FTAs

Update: October, 31/2015 - 09:42
In 2016, Vietnamese companies will have to export with a low taxation level, and join global supply chains. — Photo baodautu
HCM CITY  (VNS) — The upcoming Trans-Pacific Partnership (TPP) and ASEAN Economic Community would present Vietnamese business with opportunities as well as challenges as they would have to compete with highly qualified foreign companies, business executives said at a seminar held yesterday in HCM City.

"Today, intelligence, creativity and technology are the factors that make success, not intensive labour of a low capacity," Ly Truong Chien, chairman of the Tri Tri Group, said during the opening speech of the seminar.

He said the world was "now flat" with information available to many people.

"But Viet Nam is still passive and waiting, so the country lags behind far even neighbouring countries," he added.

Chien suggested that the business community should encourage start-ups and the embrace the philosophy of "welcoming mistakes and failures".

"Change is the essence of life, especially at this time where change is faster than in the past. Viet Nam must change to catch up with the international community," Chien said.

In 2016, Vietnamese companies will have to export with a low taxation level, and join global supply chains.

More markets will not depend on only one partner, and the business environment will be more fair and transparent.

Chien said that Viet Nam did not have a competitive advantage over other ASEAN members.

"Cheaper commodities from ASEAN will flood into Viet Nam along with high-level human resources who will come to work in Viet Nam," Chien said.

In addition, prices would increase, such as electricity, which rose 7.5 per cent early last year.

Chien said that environmental fees would rise by 300 per cent.

To cope with the situation, Chien said that the local business community must increase their resilience, promote creativity and innovation, and receive protection for their ideas and products.

"The HCM City Intellectual Property Association (HIPA) is ready to support the local business community in protecting their products and inventions," Nguyen Van Vien, chairman of the HIPA, said.

"Viet Nam has signed many international intellectual property agreements in order to support local enterprises so they can compete in the international market. However, intellectual property protection does not receive enough attention, only when Vietnamese brand names are lost," Vien said.

The situation has improved, but not enough to protect local businesses in the international arena.

"The local business community must protect their brand names, products and creations with intellectual property rights," he said. — VNS

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