Vietnam enterprises should learn to “dance” through storms: official
Vietnamese businesses need to learn to "dance" through storms, said Dr. Vu Tien Loc, a member of the National Assembly’s Economic Committee and president of the Vietnam International Arbitration Center (VIAC).
Many experts say that businesses play an important role as the driving force of development, and labor productivity is the deciding factor for the success or failure of development. What do you think about this view?
Over the past 30 years, Vietnam has told the world a great story of escaping poverty. The formation and development of an increasingly large business force in the economy and the improvement of labor productivity with the shifting of tens of millions of people from rural agricultural areas with low productivity to higher-productivity industry, trade and services sectors are among the most important achievements of the country's reform.
What is the current state of Vietnam’s business and labor productivity in your view?
Currently, both businesses and labor productivity show shortcomings. The private business sector, after a period of booming development, is weakening. Vietnam’s labor productivity improvements are very slow compared to the world and the region, and lag behind many other countries.
In the new stage of development, whether we become rich or not, once again the keywords of “businesses” and “labor productivity” must be emphasized. So I think making breakthroughs in these two areas is very important, in order to hit the critical point of the economy.
Dr. Vu Tien Loc, a member of the National Assembly’s Economic Committee and president of the Vietnam International Arbitration Center (VIAC). Photo by The Investor/Gia Anh
Regarding demand, Vietnam's economy is a three-horse carriage driven by three growth drivers: export, investment and consumption. Over the past 30 years, the country’s economic growth has achieved positive results based on these main driving forces. But now all of them are weakening as the world economy and market are slowing down.
Both the Government and the National Assembly are making great efforts, with unprecedented decisive policies, to maintain these driving forces, but we are still facing a sea of difficulties and challenges. The growth target set by the National Assembly and the Government is extremely challenging. And what we need to do now is not just to restore and maintain these growth drivers in the old structure, but to upgrade them plus promoting innovation, digital transformation, green transition, and more effective engagement in the global supply chain.
Obviously, the road ahead is extremely rough. This global economic crisis does not only come from economic and financial issues, but is the integrated and synergistic impact of many factors: climate change, epidemics, and geopolitical and geo-economic conflicts, wars and even science and technology that lead to the need for restructuring supply chains and not re-establishing a new equilibrium in a few years like in previous major crises. So it is completely grounded when people mention a decade of loss, not just a few years, of the world economy. And the world economy will not see a V-shaped recovery or a normal U-shaped recovery, but the letter U with a very long bottom.
In that context, does the Vietnamese economy also have many new opportunities?
In the process of shifting supply chains by transnational corporations, we boast many advantages such as geopolitical and geo-economic position, and a flexible foreign economic policy that enables Vietnam to befriend the rest of the world.
We are a medium-sized economy, with the levels of development and technology complementary with major powers. This is also an advantage. For a long time we have been talking about the advantages of small- and medium-sized enterprises, but there have not been many studies on the advantages of medium-sized economies: big enough to be effective and small enough to not compete for dominance, with no risks to harm others.
When it comes to improving endogenous capacity and enhancing self-reliance, are multilateralization, diversification, and making friends with other countries, including major powers, an important direction?
It is clearly important because it contributes to improving competitiveness, and ensuring the sovereignty and economic security of the country. In my opinion, endogenous capacity also features an effective symbiotic capacity between the private sector and FDI enterprises from countries around the world. Playing with giants, through symbiotic cooperation, our businesses have grown and matured. But currently this symbiotic capacity is very weak. FDI enterprises, basically, are still oases in the Vietnamese economy, with loose relationships with local peers.
Another endogenous capacity that I think is important is the public-private partnership (PPP) model. PPPs are formed not only in infrastructure development and socio-economic projects, but also in the development of industries, especially the core industries related to the country's self-reliance, self-resilience, and national security. The current powerful semiconductor industry of the U.S. is the product of the PPP program between the government and the private sector.
Vietnam needs to implement such programs, and the Government will submit to the National Assembly the draft Industrial Development Law for consideration. With state support, Vietnamese major private enterprises will do many things.
Many experts believe that to have strong businesses and a strong private sector, making breakthroughs in institutional reform is extremely important. What do you think about this?
It is right. To have strong businesses and a strong private sector, making breakthroughs in institutional reform is very important. 70% of real estate projects encountering legal difficulties signals that the institutional environment and institutional enforcement show shortcomings that need special attention from the National Assembly and the Government.
Businesses are feeling insecure because the business and development environments have many potential risks. Particularly, the Government should pay attention to institutions paving the way for the digital economy, green economy, energy transition and new business models. Regarding labor productivity, it is necessary to have a national program on raising productivity associated with a national program on improving the quality of human resources and upgrading Vietnamese enterprises. We have nearly 900,000 enterprises, 5.2 million business households and more than 6 million business entities, but quality is problematic. We should heed Japan's experience in this field.
Regarding digital transformation, green transition, and energy transition, projects in this field are large-scale projects with the potential to attract private investment, FDI and public-private partnerships. But more importantly, the development of these projects will pave the way for transparent, green, and environmentally friendly investment capital flows that characterize international investment and trade capital flows in the new era. Therefore, they need to be treated as pioneering projects to upgrade the quality of Vietnam’s growth on all three pillars of export, investment and consumption.
The world economy is facing many difficulties and will continue to struggle, but we have many great opportunities in the global transition process and especially we still have a lot of room for institutional reform. Institutions stimulate new driving forces and growth for the digital economy, green economy, and energy transition. Continued innovation and reform to strengthen public-private partnerships, and effective cooperation and symbiosis with FDI enterprises in global supply chains will open up breakthrough opportunities for Vietnam's development in the coming years.
The world will still have to go through months and years of unpredictable changes. The global economy will be like a ship on the ocean without a predetermined itinerary. Therefore, improving endogenous capacity and resilience will be the core for each economy in these stormy times. If in politics, we have the “bamboo diplomacy” (a flexible and steadfast foreign policy which is resilient and determined but not rigid), in the market, our businesses also need to learn to "dance" to weather storms. I think it cannot be otherwise.
* Dr. Vu Tien Loc used to be president of the Vietnam Chamber of Commerce and Industry.
- Read More
State-managed property trading centers will help curb speculation, price manipulation: expert
Establishment of state-managed real estate trading centers is expected to create a transparent transaction channel, helping control and limit speculation and price manipulation in the Vietnamese market.
Real Estate - Tue, October 21, 2025 | 8:37 am GMT+7
Vietnam's benchmark VN-Index records sharpest drop in 25-year history
VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), saw the sharpest decline in its 25-year history on Monday, down by 94.76 points, or 5.47%, to 1,636.43.
Finance - Mon, October 20, 2025 | 5:49 pm GMT+7
Construction contractor Coteccons sets record FY2026 targets, capital base hike via share issue
Coteccons Construction JSC (HoSE: CTD), one of Vietnam’s largest construction contractors, has set ambitious targets for its fiscal year 2026, driven by a record order backlog and its push into international markets.
Companies - Mon, October 20, 2025 | 4:50 pm GMT+7
Real estate, gold markets to be fully established by 2026: Prime Minister
Vietnam plans to complete comprehensive legal framework for its financial, real estate, and gold markets by 2026 as part of a broader effort to modernize market infrastructure and accelerate economic growth, said Prime Minister Pham Minh Chinh.
Finance - Mon, October 20, 2025 | 3:33 pm GMT+7
Vietnam breaks ground on nation’s most advanced domed stadium in Hung Yen province
Vietnam’s Ministry of Public Security has broken ground on a 60,000-seat domed stadium in the northern province of Hung Yen, set to become the country’s most technologically advanced sports venue.
Society - Mon, October 20, 2025 | 2:48 pm GMT+7
Workforce and logistics - keys to sustainable e-commerce growth in Vietnam: experts
Businesses and online shop owners in Vietnam should pay greater attention to human resources and logistics, considering these factors “keys” to competitive advantage in the increasingly volatile e-commerce market, according to experts.
Economy - Mon, October 20, 2025 | 10:54 am GMT+7
Construction stocks ignite Vietnam’s market rally by year-end
FDI inflows into Vietnam are hitting record highs, while faster public investment disbursement and stable construction material costs are fueling a late-year surge in construction stocks, analysts said.
Finance - Mon, October 20, 2025 | 10:44 am GMT+7
Vietnam's central bank struggles to rein in cross-ownership
Cross-ownership and bank manipulation in Vietnam have eased, yet control remains elusive as shareholders and related parties conceal ownership through nominees, the State Bank of Vietnam (SBV) said in a report to the country’s legislature.
Banking - Mon, October 20, 2025 | 8:34 am GMT+7
Viettel Post-invested $27 mln logistics center project breaks ground in central Vietnam
Viettel Post, a subsidiary of military-run Viettel Group, has broken ground on an over VND722 billion ($27.41 million) logistics center project in Danang city, which is expected to enhance the logistics capacity of Vietnam's central and Central Highlands regions.
Industries - Sun, October 19, 2025 | 7:35 pm GMT+7
Vietnam's stock market regulator introduces green bond disclosure handbook
By enhancing transparency and standardizing disclosures, the Green Bond Disclosure Handbook that the State Securities Commission of Vietnam (SSC) introduced will build investor trust, reduce greenwashing risks, and support the growth of a credible and resilient green finance market in Vietnam.
Finance - Sun, October 19, 2025 | 2:11 pm GMT+7
Central Vietnam province Lam Dong seeks investment for 72 projects
The Lam Dong province People's Committee has called for investment in 72 projects across various sectors which are set for implementation in 2025 and the 2026-2030 period.
Industries - Sun, October 19, 2025 | 1:31 pm GMT+7
Vietnam's leading conglomerate Vingroup ventures into senior living market
Vingroup JSC (HoSE: VIC) has unveiled Vin New Horizon, a network of premium retirement and wellness communities built to international standards, marking the Vietnamese conglomerate’s strategic entry into the senior living market.
Industries - Sun, October 19, 2025 | 12:28 pm GMT+7
Vietnam’s agri major HAGL makes surprise return to property, saying land plot forgotten for 15 years
Vietnam’s agri major Hoang Anh Gia Lai JSC's (HAGL) return to real estate is an accident, after discovering a plot of land the company had “forgotten for 15 years” during its boom years, said chairman Doan Nguyen Duc.
Companies - Sun, October 19, 2025 | 10:02 am GMT+7
REE to set up 2 subsidiaries for wind projects in southern Vietnam
Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE) has decided to establish two wholly-owned subsidiaries to develop two wind power projects in Vinh Long province, expanding its renewable energy portfolio in southern Vietnam.
Energy - Sun, October 19, 2025 | 8:00 am GMT+7
Australian CEO detained, NSH Petro’s recovery hopes collapse
The recovery prospects of NSH Petro (PSH) have dimmed after its Australian CEO was detained on allegations of fraud involving false promises of billion-dollar financing that led to the misappropriation of nearly $4.9 million.
Companies - Sat, October 18, 2025 | 6:53 pm GMT+7
Maintaining market status upgrade a bigger challenge: official
Vietnam's stock market status will be upgraded by FTSE Russell from "frontier" to "secondary emerging" from September 21 next year, but continued reform is critical as the bigger challenge is to maintain the new classification, said a market watchdog official.
Finance - Sat, October 18, 2025 | 1:30 pm GMT+7






















