Illustrative image (Photo: VNA) Many multidisciplinary business communities have been built anddeveloped, establishing connection networks between manufacturing enterprises,service providers and consumer partners, thereby, promoting the trade situationand growth rate of member businesses.
From a research perspective, Dr. Cao Dinh Kien, from the Facultyof Business Administration at the Foreign Trade University, said that the trendof business partnerships was becoming more and more popular in the moderneconomy because of the benefits it brought to the participating parties.
With the development of technology and globalisation trends,business co-operation activities are also indispensable to help businessesexpand their scope and scale of operations as well as reduce costs or increasecompetitiveness.
In Vietnam, the State has also introduced many policies toencourage multi-sector economic development; as well as promoting the processof international economic integration by opening the economy and activelyparticipating in world economic organisations.
This not only creates potential and opportunities for developmentbut is also a big challenge, requiring domestic businesses to know how to takeadvantage of business association activities as well as its advantages toenhance competitiveness.
Although many business links had been formed, there was still noinitiative from participating entities, especially small and medium-sizedenterprises - those who benefit from this activity, said Kien.
Forms of business association in Vietnam had also stopped at asimple level, implementing horizontal and cluster linkages to form craftvillages or business associations of a certain industry, he said.
Some large enterprises associate with small enterprises andbusiness households in the form of leasing or contracting, mostly for non-corebusiness activities of the enterprise.
The rate of conducting business linkages for core businessactivities or further participation in the global value chain is not much.
This was partly due to the fact that Vietnamese economy is mostlyrun by households and individuals, with a high degree of spontaneity; productionprocesses and quality were not standardised, so it was difficult for largeenterprises or foreign enterprises to trust and co-operate in long-term, headded.
Therefore, in order to encourage business linkage activities,there needed co-ordination from the State, industry organisations and economicentities, said Kien.
Accordingly, functional branches create a favourable legalframework, appropriate institutions and legal policies for different types ofbusinesses to develop.
Professional organisations in all economic fields must play a rolein communication through seminars with content related to business associationactivities, and at the same time, consulting and connecting to businesses findopportunities to link together and develop the industry's value chain, at homeand abroad.
To do so, organisations needed financial resources and humanresources with expertise to carry out the advisory role, said Kien.
Finally, economic entities or businesses and business householdsare conscious of change, self-improvement and proactively seek to participatein the process of business linkages and formation of value chains.
The initiative of economic actors played a key role in theformation and operation of economic links, he noted.
To promote socio-economic benefits from business links, economicentities must proactively seek opportunities to co-operate and solvedifficulties in the value chain in which their businesses operated, he added,only then could new business links operated most effectively in the market./.
VNA
