Vietnamese enterprises too fragmented for global, regional economic integration: forum

 

Vietnamese and foreign experts have been concerned that local enterprises may face numerous challenges when further integrating into the regional and international economy, with many trade deals with foreign partners already signed or about to be clinched, local media reported.

The realization of those trade pacts can be considered a key moment for Vietnamese firms to join the global value chain, experts said Tuesday at the mid-term Vietnam Business Forum 2015, with the theme of “Improving the Competitiveness of Enterprises for Global Integration.”

Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said the private sector in the country is still very fragmented as individual and household businesses are contributing over 33 percent of GDP, news website VnExpress reported.

Two percent of the sector are large-scale businesses while medium-sized enterprises account for two percent and the remaining 96 percent are small and micro enterprises, Loc said.

“Vietnam’s economy is severely lacking in mid-sized businesses which can serve as linkages between local firms and the global value chain and directly participate in international markets,” he asserted.