Worker at the Hoa Sen-Phu My factory in the province of Ba Ria-Vung Tau. — Photo hoasengroup.vn

HCM CITY (Biz Hub) — Domestic private companies should get equitable treatment, especially in the context of the country's increasing international integration, a seminar heard in HCM City on Monday.

Speaking at the "Integration and globalisation" seminar organised by the Viet Nam Youth Business Association, Le Phuoc Vu, chairman of Hoa Sen Group, said "Domestic and foreign firms should be considered as the two legs of the Vietnamese economy, but we see foreign businesses develop strongly and local ones decline."

"The Government has not been transparent or fair [in its treatment of] various economic sectors, and this is considered one of the main reasons for domestic companies' limited development"

Poor management skills, lack of experience in production and limited funding are the other factors that have restricted the development of local companies, who account for only 30 per cent of total export turnover with foreign firms accounting for the rest.

Delegates at the conference urged policy makers to pay more attention to the private sector, resolve its problems and create favourable conditions for it to integrate with the global economy.

Since most domestic companies are small or medium-sized, they always face disadvantages, especially when trying to borrow, they said.

"Besides seeking support from the Government, private enterprises must address three problems: poor human resources, management and awareness," Nam Phuong, deputy chairwoman of the Da Nang Youth Business Association, was quoted as saying by Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) newspaper.

The Government is trying to create a level playing field for all sectors by creating a transparent, fair and open business environment, she said.

"Therefore, the private business community should improve its awareness to catch up with the changes."

To increase awareness, their managers should be educated, she said.

"Awareness of Government workers must also be improved because they will be one of the most important factors in operating policies."

The seminar sought to discuss "how private enterprises can exploit free trade agreements", one of themes that will be discussed at the upcoming Viet Nam Private Sector Forum (VPSF).

According to the VPSF, the Vietnamese economy will face three major issues related to its global integration before 2018: ending of WTO transition period, the Trans-pacific Partnership, and the European – Viet Nam Free Trade Agreement.

"By 2018 the competitive pressures will increase significantly and only foreign-invested companies can take advantage of the integration because they have better competitive ability than domestic ones," Dao Huy Giam, the VPSF's chief consultant, said. — VNS