Vietnam's recent economic policy shifts are taking center stage as the government moves to abolish duty exemptions for low-cost imported goods, effective February 18. This decision, signed by Deputy Prime Minister Ho Duc Phoc, reflects mounting concerns over local market impacts from e-commerce platforms, particularly from Chinese online competition.
Historically, imports valued under 1 million dong (approximately $39.37) had been exempt from duties since 2010. The move to scrap this exemption was driven by the feedback from local businesses and the overall push from the national parliament aimed at safeguarding domestic industries.
Simultaneously, the Vietnamese government acknowledges the pressing need to bolster national enterprises, which are seen as pivotal not only for enhancing the country's industrial capabilities but also for carving out global market presence. This development is intricately linked to Vietnam's aspirations to modernize its economy and integrate more deeply within international value chains.
According to experts, the definition of what constitutes a national enterprise remains vague. Some argue it should be restricted to large state-owned corporations such as Vietnam Airlines and Vinamilk, whereas others argue it should include powerful private corporations like Vingroup and Hoa Phat. The lack of clarity hinders the establishment of concrete legal frameworks and support mechanisms for these entities.
"Completing legal policies to support national enterprises is not only urgent, but also decisive for achieving industrialization and modernization," says Nguyen Si Dung, PhD, former deputy chief of the National Assembly Office. He emphasizes the need for policies facilitating access to capital, especially within key sectors like high technology and renewable energy.
The Vietnam Chamber of Commerce and Industry has noted significant growth since the anticipated Doi moi (Renewal) reforms introduced back in 1986, with the country now boasting over 900,000 enterprises, including approximately 20,000 cooperatives and more than 5 million business households. This growth creates opportunities but also showcases the pressing need for enhanced frameworks to nurture these enterprises, especially amid threats from foreign competition.
Nguyen Xuan Phu, Chairman of the Sunhouse Group, adds another layer to this conversation by calling for breakthrough policies to support national enterprises. "Developing these enterprises will require comprehensive strategies including financial aids like investment support funds and credit incentives, alongside fostering human resource training and technology transfer."
The establishment of specific criteria for identifying national enterprises is highlighted as fundamental. Policies enabling these companies to innovate, expand their capabilities, and focus on high-value products are also considered necessary. Dung points out the importance of creating mechanisms to link small- and medium-sized enterprises (SMEs) with larger corporations to build sustainable business ecosystems.
There is recognition of the successful models of national enterprise development seen in countries like Japan and South Korea, where leading companies such as Samsung and Hyundai serve as core entities anchoring their respective economies. Learning from these existing frameworks could provide Vietnam with the necessary blueprint to develop its own leading national enterprises.
To close gaps, proposals have emerged for building stronger national brands and protecting products with Vietnamese identities on global platforms. Experts believe state-sponsored programs should aid Vietnamese enterprises' participation in international trade exhibitions to bolster their visibility and competitiveness.
The government’s decision to end duty exemption for low-cost imports combined with steps to define and support national enterprises marks significant progress for Vietnam as it navigates the challenges of globalization and economic modernization. Analysts remain cautiously optimistic, envisioning these reforms as pivotal levers for enhancing Vietnam’s economic standing on the global stage.