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Family businesses make significant contribution to GDP

Update: June, 27/2017 - 16:00
Workers make bamboo mats in Định Tường Commune in the central province of Thanh Hóa. — VNA/VNS Photo Đình Huệ
Viet Nam News

HÀ NỘI — Around 100 large household businesses in the country are contributing to a quarter of the country’s gross domestic product (GDP), the Việt Nam Chamber of Commerce and Industry (VCCI) said.

A large section of the private sector comprises family businesses, and their contribution demonstrates their pioneering role in boosting the post-crisis economic recovery, and nurtures the entrepreneurial spirit, playing an important role in the development of Việt Nam’s economy, Vũ Tiến Lộc, chairman of VCCI, told the Voice of Việt Nam (VOV) online newspaper.

Speaking at a meeting on “The Professionalisation of Household Businesses” on Saturday, Lộc said "family-owned enterprises are an important component that promotes the development of the private sector, helping form private economic groups that lead in many sectors and make a valuable contribution to the nation’s GDP".

“The advantage of Vietnamese household businesses is the trustworthiness and intimacy between family members, but it poses the challenge of balancing this relationship with the principles of corporate governance,” Lộc said.

In order to become even more successful, household businesses must work to change their mindsets, improve corporate governance and focus on strengthening human resources management.

Growing into some of the world’s largest and most reputable corporations is an important task for both the economy and the household businesses. To achieve it, there must be professional solutions to enhance the competitiveness of these types of businesses, Lộc said. — VNS


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