Mobibiz.vn takes pulse of local firms
Mobibiz.vn takes pulse of local firms
This year’s record number of free trade agreements has opened up a new era of unlimited potential as well as challenges for Vietnamese businesses whose ambitions lie beyond the country’s borders.
Vietnam has, so far this year alone, signed and concluded four crucial free trade agreements (FTAs) with major markets, including the free trade agreement between Vietnam and the Eurasian Economic Union, and the Vietnam-Korea Free Trade Agreement.
Vietnam has also finalised negotiations on other two landmark agreements, namely the Trans-Pacific Partnership (TPP) and the EU-Vietnam Free Trade Agreement (EVFTA).
The country has also sealed six FTAs with the Association of Southeast Asian Nations (ASEAN), while continuing negotiations on six other trade agreements. In addition, the country will officially be joining other ASEAN members to form the ASEAN Economic Community (AEC) on the last day of this year.
These FTAs will create opportunities for local businesses to access world markets through trade incentives and the elimination of as many barriers and non-tariffs as possible.
Perhaps the most significant FTA, in terms of the removal of barriers, is the EVFTA, where some 99 per cent of import taxes will be waived by the EU.
Meanwhile, for the TPP, the tax exclusion rate will range from 78-95 per cent once the agreement takes effect. According to the Peterson Institute for International Economics, by 2025, the TPP alone has the potential to boost Vietnam’s exports by 37 per cent, equivalent to $68 billion.
However, in tandem with these opportunities, Vietnamese businesses will face unparalleled competition in the open market. As such, the question currently facing domestic firms is how can they compete with foreign businesses while capitalising on the FTAs?
According to a recent report by PwC International, more than half of the 800 CEOs surveyed in Asia-Pacific responded positively when asked if they would invest in economies like Vietnam, the Philippines, or Singapore next year. This good news is somewhat surprising as 2015 has been a year of record-high foreign indirect investment for developing nations in Asia.
“This shows that CEOs have experience in dealing with short-term instabilities and taking advantage of business opportunities in the region,” said Dennis Nally, chairman of PwC International.
With this new era of heightened competition just around the corner, Vietnamese businesses must make certain preparations if they are to swim with the bigger fish. Their ability to succeed in this regard will depend largely on those possessing a strong internal force that enables them to advance and take advantage of the FTAs. As part of their attempt to establish a solid foundation, it is important to self-evaluate their strengths and weaknesses, as well as their performance, relative to their competitors.
With the clear objective of supporting the local business community in their integration into the global market, MobiFone, one of the leading mobile network operators in Vietnam, has successfully developed an application which performs a health-check for businesses.
The Online Business Healthcheck, launched in early December, offers a free online tool at mobibiz.vn. Here, businesses can take the initiative to assess their activities and the factors affecting their business growth, including their vision, financing, markets, and customer base. Upon receiving a business’s response to the online check list, the system will automatically process the information and analyse the data, issuing the company with a summary report on the health of its business.
