The collapse of the
State enterprise reform is changing this. The barriers between state corporations are breaking down and competition is increasing between them. As they equitise member companies, some corporations are losing formal control. Over time, the precise meaning of the term ‘corporation’ in
Large firms are also making decisions about their future. Some of
Product upgrading is not the preserve of firms in more obviously ‘high-tech’ industries. Several firms interviewed in garments, textiles and seafood had invested to create more value in their core businesses. For these firms profits can be found in the development of skills and technologies. However, the process can be as risky as investments in over-valued land and securities. Technology is expensive and difficult to acquire, workers need to be trained and markets understood. Often the alternative is to build hotels, apartment blocks and industrial zones and to establish subsidiaries to trade equities.
The government can encourage firms to invest in core business areas by discouraging speculative investments in real estate and financial markets. Appropriately designed land and capital gains taxes would be a good start. In addition, the government can assist firms in the acquisition of skilled labour by improving the quality of universities and vocational schools. These two policy areas emerged as key issues in our interviews. Addressing them will facilitate the growth and development of
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- The Relationship Between Old Age and Poverty in Viet Nam
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- Filling the Gap: The Emerging Civil Society in Viet Nam
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- The State as Investor: Equitisation, Privatisation and the Transformation of SOEs in Viet Nam
- Impacts of Basic Public Services Liberalization on the Poor and Marginalized People: The Case of Health, Education and Electricity in Viet Nam
- Deepening Democracy and Increasing Popular Participation in Viet Nam
- Study on the Competitiveness and Impacts of Liberalization in Financial Services: The Case of Insurance Services
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