Vietnamese enterprises need to revise their business strategies in aprofessional and careful manner in order to make use of the futuredevelopment opportunities, Vietnam Chamber of Commerce and IndustryDirector Vu Tien Loc said.

The past few years weredifficult for the Vietnamese business community. However, due to theGovernment’s efforts to reform its administrative procedures,enterprises regained confidence in the future business climate, henoted.

The VCCI leader said a new wave of investments lay ahead, with more stability and caution.

During the period of 2004-2006, thousands of firms went bankrupt dueto their investments in a failing financial and real estate sector,while 60-70 percent of businesses made no profit.

However, nearly 500,000 enterprises are currently in a position ofstability, contributing to national economic growth and creating jobs,Loc said.

The government’s economic restructuringefforts have also been stepped up, Loc said, adding that by 2015, morethan 400 State-owned enterprises, accounting for around half of SOEs,will have been equitised.

For the first time,Vietnam has met the ASEAN standards on administrative reform, whilethe National Assembly considered the approval of the Laws on Enterprisesand Investment, which is expected to support business development, hestated.

At the same time, Vietnam ’s signing of anumber of free trade agreements (FTA) with partners is also hoped toopen up new chances for domestic businesses to expand their developmentspace, according to Loc.

The VCCI leader was of theopinion that FTAs, along with other trade deals, would pave the way forVietnamese firms to increase their exports, especially of strongproducts such as footwear and apparel; and agriculture, forestry andfisheries products; while attracting more investments.

Meanwhile, Do Huu Hao, Chairman of the Vietnam General Associationof Mechanical Engineering, asserted that FTAs would also put pressure onVietnam to improve its investment environment and build acomprehensive economic institution.

An investmentinstitution would support the creativity of enterprises, Hao said, whois a former Deputy Minister of Industry and Trade. He added that asuitable roadmap for Vietnamese firms for the next five years was toexceed the ASEAN standards and orientate themselves along US and EUstandards.

Additionally, the reforms ofadministrative procedures, taxation and customs should be made moretransparent in a bid to raise the confidence of enterprises.

On top of this, VCCI Director Loc said it was crucial for Vietnameseenterprises to improve their capacity and internal strengths to make useof all the opportunities.

According to Cao Sy Kiem,head of Vietnam ’s Association of Small and Medium-SizedEnterprises, the country’s SMEs could face a number of difficulties incompeting with foreign rivals upon implementation of the FTAs due totheir limited capital, out-of-date technology and low-quality labourers.

Sharing Kiem’s opinions, Hao acknowledged thatenterprises themselves were affected by many shortcomings, frommanagement and technology to capital sources, underlining the need forbusinesses to improve their own situations.

Businesses should pay more attention to the fundamental elements ofdevelopment and their internal processes, such as management strategy,human resources development, and technology, Loc said.

The VCCI also proposed concrete measures to improve thecompetitiveness of Vietnamese enterprises in the integration process,including the establishment of a system of business associations.

A new business development era needs to be launched in Vietnam ,with more enterprises showcasing their tangible strengths, Locconcluded.-VNA