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How businesses can help curb soaring inflation...
Each movement in the business community may have an impact in curbing inflation, said economist Han Manh Tien here yesterday.
Tien was speaking at a conference of economists and entrepreneurs hosted by the Viet Nam Association of Business Managers and the Viet Nam Association for Science and Technology.
The subject of the conference was "countering inflation as an aspect of business management".
Tien, who is chairman of the Viet Nam Association of Corporate Directors, said entrepreneurs should involve themselves directly and feel deeply the effects of the nation's present economic situation.
According to Professor Dr Tran Dinh Thien, deputy director of the Viet Nam Institute of Economics, the Government's measures to stabilise the economy have been on the right track.
"The problem now is to concentrate on solving the difficulties from grassroots level since the business community includes mainly medium and small-sized enterprises," he said.
"Improving the effectiveness of the business community would be an effective measure in coping with inflation."
Thien also stressed the importance of creating trust in people and enterprises towards the Government's management.
Regarding information sources, Professor Dr Nguyen Hong Son, deputy rector of Ha Noi National University's Collage of Economics, said that Vietnam's economy had become an information society in which plans could be made quickly from fast and diversified information.
"Any mistake made by one irresponsible statement, announcement or rumours can make measures and policies fail," he warned. "This makes people mistrust enforcing policies."
Dr Nguyen Minh Phong from Ha Noi Institute of Social Economic Development, said that the fight against inflation depended a lot on the effectiveness in using loans from State-owned groups and corporations, which accounted for more than 50 per cent of total State investment.
"Meanwhile, we should increase the investment in the production of goods necessary for daily life, such as agriculture, export and consumption," he said.
Entrepreneurs
At the conference, entrepreneurs urged banks to equip staff with risk management skills.
Nguyen Quang Thuat, general director of Foodinco Investment and Trading Joint Stock Group, urged State-owned companies, especially those in banking and finance, to have the most update and accurate information before making any public pronouncements.
General director of AsiaInvest Nguyen Ngoc Bach said the important thing for enterprises was an effective system for risk management.
"Enterprises should review investment lists in their budget for 2008 and re-organise the capital structure," he said.
Bach advised enterprises to have a good control over expenses and promote practising thrift in their offices. "They should actively find material and goods suppliers since their current suppliers can reduce production due to financial difficulties," he said.
VNS
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