The push to inclusive economy

Why do you want to talk about changes of enterprises in 2017?

In 2016, entrepreneurs always said that they believe in and support the government’s efforts to build up a more enabling and responsive government. However, they still don’t trust specific state employees.

Earlier, due to economic woes, many enterprises stopped performing, while the rest have been struggling to stay afloat. So enterprises’ confidence is not high. However, the government is making great strides to revive their confidence.

In early December 2016, at the Vietnam Business Forum (VBF) 2016 in Hanoi, you highlighted a series of hurdles facing enterprises. Could you elaborate on these?

Vietnam’s business environment has yet to reach the average level of ASEAN-4 (Indonesia, Malaysia, Philippines, and Thailand). Some standards of the Vietnamese economy are lower than the average level of ASEAN-6 (Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam). Thus local enterprises’ health remains weak, making it difficult to compete and co-operate with foreign enterprises.

However, the Ministry of Industry and Trade recently removed a series of regulations that we earlier mentioned at the VBF 2016, such as the elimination of the energy labelling procedures before products’ customs clearance is conducted, and the removal of planning on rice exports.

Although much remains to be done by this ministry, what it has done is very encouraging.

The same is also true at the local level. For example in the north-western province of Dien Bien, the leadership wants to continue dialogues with enterprises and learn from other localities ways to improve the province’s business climate. Dien Bien’s provincial competitiveness index (PCI) is ranked 53rd out of Vietnam’s 63 provinces and cities. Such a low PCI means enterprises remain unhappy with Dien Bien’s business environment.

However, the changes will strengthen enterprises’ confidence. But such changes are not enough, and will become really successful when state officers accomplish their duties with enthusiasm and gusto, not because they were ordered to do so by their bosses. That’s the nature of an enabling government.

As it goes with institutions, so it goes with enterprises. Enterprises are eager to grab opportunities. This is a very important condition for Vietnamese enterprises to achieve the goals that they have missed out on in the 10 years Vietnam has been a member of the World Trade Organization.

Industry leaders are seeking ways to keep the future economy inclusive and relevant for Vietnamese values Photo: Le Toan

You once said that the fourth industrial revolution will significantly change the global trade picture. Do you think that this will bring bigger challenges to Vietnamese enterprises?

The US’ Ford Group has recently annulled its billion-dollar project in Mexico, while a Japanese insurance firm has sacked 34,000 employees to use artificial intelligence instead. Taiwan’s Foxconn Group has replaced many employees with 60,000 robots. This evidence shows that Vietnam’s advantages, such as cheap labour and labour-intensive sectors like footwear and garments, will not be the mainstay for economic growth.

Even the agricultural sector, which is often considered one of the economy’s impetuses, is also being faced with great challenges caused by climate change, which is forcing farmers to change their crop structure, with high-yield rice varieties used for production.

We also think about why Vietnam’s culinary culture is not famous worldwide, though the country has many excellent types of foods. Some Vietnamese foodstuff firms have even been sold to foreign firms.

Vietnamese firms are finding ways to answer such questions, with new business strategies and development orientations. Of course, their efforts must be fuelled by the government’s support. But all big changes must start with small actions. Enterprises need safer and more transparent policies to make changes.

Vietnam will host the Asia-Pacific Economic Co-operation Summit (APEC) 2017 in November in the south-central city of Danang. This will be a great opportunity for the country to promote its image and improved business climate to the world. What stories will you, as the CEO of the APEC CEO Summit, tell to the world?

I will talk about Vietnam’s enterprises in an inclusive economy. The enterprises include small- and medium-sized ones, and households who are trying to make their lives better. I will also talk about local big enterprises which are focusing on producing organic vegetables and safe meat, in collaboration with farmer households.

Additionally, I will talk about Vietnam’s young people and students coming back to their homeland from overseas to establish startups, with traditional products which have international standards and are sold both in physical locations and online.

It is also necessary to stress that APEC 2017 will, for the first time, use the term “inclusive economy,” in which super-small enterprises’ roles are included in the event’s agenda.

I do believe that local enterprises’ stories will provide an unforgettable narrative for the APEC leaders and global CEOs. Moreover, Vietnamese enterprises also need to listen to these stories.

I also want to talk about the gift that we will present to the APEC leaders and global CEOs. We have selected the statue of a mother embracing her children, a depiction of the legendary Au Co – the mother who gave birth to Vietnamese civilisation. In the legend, she bore an egg sac that hatched one hundred children, 50 of whom were boys and 50 of whom were girls. The legend is the symbol of Vietnam’s Dao Mau religion.

The legend of Au Co conveys a message about our community’s solidarity, which we hope will resonate with APEC’s guests. We want, via the symbol, to entice them to come to Vietnam for business or travel, just as symbols like the Statue of Liberty in New York, the Little Mermaid statue in Copenhagen, or the Manneken Pis statue in Brussels intrigue us about those places.

Currently, the final design is being considered. I think that it can be used as a gift or can be placed in a park or a tourism area.

Do you think that APEC will also offer great opportunities for Vietnamese enterprises?

Yes. From the past through now, APEC has referred to the participation of major economic groups.

However, at APEC 2017, the roles of super-small enterprises, households, and individual entrepreneurs will be mentioned. Why? Because while the Trans-Pacific Partnership’s future remains in question, the APEC leaders hope to head for a new economic institution with deeper integration and advanced technology, without anyone being left behind.

In this new message, Vietnam’s enterprises have seen many opportunities for themselves – in co-operating with big enterprises, and even in becoming wealthy global entrepreneurs.

Of course, in order to prevent opportunities from turning into challenges, local enterprises must continue improving themselves to reach the world’s common standards. Otherwise, they will be left behind.

I also expect that local enterprises will always keep in mind the humaneness in business via their experiences. That’s the business culture of Vietnamese people – tolerance and sharing, with responsible businesses and environmentally friendly products. They can leave their business imprints in the inclusive economy with their own creative business path.

My colleagues and I are also seeking local specialities to introduce to special guests at the APEC 2017. In 2000, former US President Bill Clinton visited Vietnam and enjoyed Vietnamese noodle soup pho. Also, in May 2016, when visiting Vietnam, outgoing US President Barack Obama enjoyed bun cha [a Vietnamese dish of grilled pork and noodle] in Hanoi. This event made big media headlines.