Currently, many State-owned enterprises are still engaged in out-dated business operations. Many small-and medium-sized enterprises have not yet joined efforts in generating competitive power. Instead, a certain number of them have even resorted to every means to gain the upper hand over others in the trade area. Therefore, the lack of joint cooperation efforts will not only limit production efficiency and competitiveness but also challenge the existence of businesses themselves.

To cope with tough competitiveness, multi-national groups tend to move their plants to developing countries to reduce production costs. Unilever Vietnam is an example. Starting business activities in Vietnam 11 years ago, Unilever Vietnam has become one of leading foreign-direct investment companies in terms of growth rate, achieving 43 percent per year. To achieve such a growth rate, Unilever Vietnam has established ventures with not only the Vietnam Chemistry Corporation but also hundreds of domestic enterprises through contracts of financial assistance, labour employment and material supply. As a result, as much as 70 percent of Unilever Vietnamese products of international standard quality have been made by domestic enterprises so far this year.

However, the successful story of good business like Unilever Vietnam is not a common occurrence in Vietnam.

Chief consultant of PRISED project in Vietnam Kees Van Der Ree said Vietnamese enterprises need to promote dialogues and better keep up with increasing demand from customers. One of the challenges many Vietnamese businesses are facing is the lack of information about market, prices and new trends not to mention that they still have a short-sighted business vision. There is no doubt that they are finding themselves in a difficult position to sell their products for home consumption, let alone for export.

Against this background, it is imperative for enterprises to make cooperation efforts in the long term. Facts show that close cooperation among seafood processing enterprises, tea enterprises and garment and textile enterprises in recent years has helped develop new markets, and resolve international disputes.

However, according to the Vietnam Chamber of Commerce and Industry (VCCI), there is still little cooperation among businesses operating in industrial parks. This is a stumbling block to their efficiency in production and business activities.

Director of the Vietnam Institute of Management (VIM) Han Manh Tien, said businesses are lacking information to get updated on market development and management.

Mr Manh said “Associations play an important role in providing information. We have asked them to launch an information programme with a view to helping enterprises in need of information. They should provide reliable information for businesses to map out their own strategies for quick access to new markets. In the meantime, state agencies should fully inform enterprises of market, technology, investment developments as well as World Trade Organisation rules and other legal matters.”

President of the Vietnam Young Entrepreneurs Association, Phuong Huu Viet said “Associations will increasingly play its important role after Vietnam joins the WTO. There will be a lot of international trade exchanges, and enterprises will likely face trade disputes. Therefore, associations should provide not only a reliable source of information but also a forum for enterprises to share experiences, and join efforts in protecting themselves once trade disputes arise. So to speak, together with their member businesses, associations should make careful preparations on the threshold of international integration.“