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Countries keen on business in Viet Nam
HCM City hosted the 19th Asian Corporate Conference last week, the second such event held in Viet Nam by the Asia Society since 2003. The organiser affirmed the keen interest of other countries to do business in Viet Nam, despite the current economic climate.
Vishakha N. Desai, president of the society, a non-partisan, non-profit global educational institution based in New York City, said given Viet Nam’s vast economic strides over the past few years the time had come to bring the group’s corporate conference back to Viet Nam to examine current developments.
Deputy Minister of Planning and Investment Cao Viet Sinh told 700 participants that the banking and financial sectors as well as other groups were in excellent condition at time when many economies around the world were succumbing to many problems.
"So far this year, no bank in Viet Nam has become insolvent," Sinh said. "Many banks reported profits in the first quarter of this year, and this proves the healthy performance of banks in the country."
The Government is trying not to cut spending, particularly on social and economic development, and has managed to raise funds from Government bond issues as well as loans from various sources including the private sector.
Brett Krause, managing director of Citibank in Viet Nam, said the country had not been directly affected by the international financial crisis as the financial system had not fully integrated into the world.
Simon Tay, chairman of Singapore Institute of International Affairs, remarked the capital inflows in Viet Nam were still small and suggested that the financial system be carefully monitored.
According to Dam Bich Thuy, CEO of ANZ Viet Nam, the economic crisis remains a serious challenge, but any country managing to escape and become stronger will be able to maintain the strength over the long-term.
"After the recession, Viet Nam will not be the only country to attract capital from the US, the EU, and even Asia. The one that has the best competitiveness will be the winner," she said.
"To Viet Nam, the most important thing is to maintain a positive growth rate, not necessarily a high one. It should target a competitive position much higher than the level prior to the crisis," said the banker.
Domestic promotion
The Ministry of Trade and Industry announced last week the 2009 domestic promotion programme that will help companies further tap the local market as exports are being hit by the global economic downturn. The programme is estimated to cost around VND51 billion.
Hoang Tho Xuan, head of the Domestic Market Department, said the ministry would finance programme costs for market research on the spending habits and demands of Vietnamese consumers as well as the current status of the distribution system.
The survey will be carried out nationwide in the second and third quarters and focus on food and foodstuffs, textiles and garments, footwear and home appliances.
The ministry will then fund 100 per cent of the cost that will help Vietnamese businesses bring goods to rural as well as large urban areas, and industrial parks.
Xuan said that would help weed out fake items and low quality goods flooding the rural market from outside the country.
The ministry will also support producers who make essential goods that meet rural consumers’ demands and their spending capacity.
Under the programme, the retail network in the countryside will be widened.
Last year, the scale of the domestic market stood at US$60 billion.
Branding
Branding is an important factor for business survival, but during an economic crisis it plays an even more significant role.
A seminar on the significance of branding during an economic downturn was organised last week in Ha Noi. The meeting’s aim was to find the most efficient and innovative ways possible to brand company services and products.
Alain Cany, co-chairman of the Viet Nam-EU Business Forum, who hosted the event, said he hoped businesses would benefit from an overview on how to make their brands successful.
According to Ralf Matthaes, managing director for the market research firm TNS Viet Nam, the current economic crisis offers strong growth in fields like telecommunications.
He advised companies to make investments at this stage because of the current low costs. The time was ripe to win an edge over competitors, he added.
Ralf also reminded seminar attendees that consumers were changing their spending habits.
According to Vo Van Quang, Viet Nam director for the brand-building group Cowan, consumers of high-end goods will buy lower-priced products during an economic slowdown, but that does not mean a closure of the market.
On a larger scale, a national trade market would help business, he said.
Viet Nam’s National Trademark Programme’s first phrase in 2008 selected 30 trademarks in various sectors, including textiles, footwear, beverage, confectionery, tourism and telecommunication services.
It helped businesses set up a national image based on innovation, creativity, quality and leadership, and sought to develop Viet Nam’s reputation for diverse, high-quality goods and services.
An Phuoc Garment Co General Director, Nguyen Thi Dien, said joining the programme helped her company consolidate its reputation in both local and foreign markets and had led to more contracts with Japanese counterparts during the past year.
Many Vietnamese brands have become more popular in the country, as they represent four out of the top 10 brand-names in the country. The four companies are Viettel, Agribank, Bao Viet and Kinh Do.
VietNamNet, Viet Nam News
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