In the context of global economy integration, Viet Nam has been making every effort to participate in international organisations, and negotiate a number of free trade agreements in a bid to promote the national socio - economic development.

Workers at the Huynh Duc Trading Service & Manufacturing Co Ltd

Along with this trend, small and medium-sized enterprises (SMEs), which play an important role in the economic development of the country, enjoy the opportunity to expand their production and business activities.

In addition to opportunities, global integration poses big challenges in human resources competitiveness and expanding their consumer markets for SMEs.

A representative from an unnamed company at the Hoa Khanh Industrial Park in Da Nang’s Lien Chieu District said his company has been facing difficulties in recruiting and retaining skilled labour force as the US aerospace components factory at the Hi-tech Park started its recruitment.

He remarked some of his company’s skilled employees intend to quit their existing jobs to find better ones. In addition, most of university graduates prefer to work in big foreign corporations than domestic factories. The main reason is thought to be that foreign companies offer better benefits than domestic ones do.

In addition, many import/export businesses bear bitter fruit when their overseas partners do not keep their prestige.

Ms Nguyen Thi Kim Lien, General Director of the An Dien General Business Co Ltd in Thanh Khe District, said that her company used to export goods to Laos. In the contract, her Latian customers agreed to make the payments within once month. However, around 6 months later, they failed to pay money that they owe.

“In theory, we can sue these customers for breaching the contract, but in fact, some SMEs like us do not have enough finance sources and human resources to pursue such lawsuits. Moreover, pursuing lawsuits means the companies may also lose customers”, Ms Lien added.

Meanwhile, some SMEs are tricked by foreign partners due to not having a thorough grasp of laws.

For instance, a furniture manufacturing and trading enterprise in Cam Le District recently bought an expensive set of wooden tables and chairs. The product was advertised to be imported from South Korea but it, in fact, was found that it was sourced from another country.

Speaking at a seminar on international integration in late June, lawyer Vu Xuan Hung, Deputy Head of the Ho Chi Minh City branch of the Viet Nam Chamber of Commerce and Industry (VCCI), stressed the necessity for SMEs to have a thorough grasp of laws to avoid being tricked.

He advised SMEs to ask their foreign partners to provide full certificates of origin instead of bar codes which can be completely made fake.

“In the context of Viet Nam signing numerous trade agreements with foreign countries, SMEs can search information relating to taxes, tariff reduction schedule, non-tariff measures, trade defence measures and rules of origins of goods on VCCI’s website in Vietnamese language”, Mr Hung emphasised.

The Director of the Huynh Duc Trading Service & Manufacturing Co Ltd, Mr Le Duc Hoai, underscored the need for SMEs to renew their machines and equipment, train high-quality human resource, diversify their products and expand their consumer markets in a bid to boost their international integration.