Restructuring vital for economic growth
By Pham Thai - The Saigon Times Daily
HCMC - In the current context of economic hardships inside and outside the country, restructuring local enterprises is a vital factor for them to survive tough times and grow in a sustainable way, heard a corporate management consulting conference.
The conference was organized in HCMC last Saturday by the Executive Master of Business Administration – Management Consulting International (EMBA-MCI).
Corporate restructuring remains a challenge for not only large companies but also smaller ones in all economic sectors in many different fields. These entities need to be equipped with knowledge if they have yet to follow any sustainable business and corporate management models.
Local businesses have been facing difficulties given the ongoing macroeconomic uncertainty and slowing economic growth in the first few years of the Government’s economic restructuring program, economic expert Pham Chi Lan told the conference. Also, it is hard for them to mobilize capital for expansion, she noted.
Meanwhile, the competition with other nations, especially China and members of the Association of Southeast Asian Nations (ASEAN), has become fiercer due to the greater openness of the Vietnamese economy in line with free trade agreements (FTA) clinched with foreign partners, Lan said.
“Therefore, enterprises need to undergo restructuring and adjust competition strategies to ride out difficulties and adapt to the changing business environment for growth,” Lan stressed.
According to Lan, a lot of companies tend to depend on support from the Government since a series of macroeconomic restructuring solutions have been launched. “The task of the Government is to create sustainable macroeconomic conditions, not to support troubled firms on a case-by-case basis,” she pointed out.
To make the proposed restructuring more effective, businesses should focus on research and development, science and technology to raise productivity and add value to their products, said Phan Minh Tan, director of the HCMC Department of Science and Technology.