Vietnam’s business in 2018: New mindset needed for prosperity

Updated at Friday, 05 Jan 2018, 16:36
The Hanoitimes - The business community in 2017 has experienced ups and downs, but with more business mindsets and ideas to break away from tradition, 2018 is expected to be year for enterprises to flourish.
As the government is pushing up with the divestment plan of state fund from state owned enterprises (SOEs), new doors are open for private enterprises to set foot in essential economic sectors in Vietnam. The shift of trade and investment flows through new-age free trade agreements to preparations for the fourth industrial revolution also create chances in attractive investment – business channels. 
2018 is expected to be year for enterprises to flourish.
2018 is expected to be year for enterprises to flourish.
The divestment plan of state fund from the Saigon Beer Alcohol Beverage Corp (Sabeco), resulting in Vietnam Beverage successfully bought 53.59% Sabeco shares has raised 4.8 billion USD in revenue. This successful deal has eased off concern from investors and some administrative agencies, showing the positive responses from the market toward determination and effort of the government in respecting market principles and meeting expectation for a transparent business environment. As such, this deal will lay the foundation for other SOEs to speed up the equitization process, such as Hanoi Beer Alcohol & Beverage (Habeco), Vietnam National Petroleum Group (Petrolimex), Mobil Fone, PV Oil, PV Power, Vietnam National Tobacco Corporation (Vinataba), or Binh son Refining and Petrochemical Company (BSR). 

Previously, some expressed concerns over the government is selling the best Vietnamese brands to foreign investors, but through divestment plans, the aim is to have diversified ownership in the economy. Eventually, the important issues would be the good service quality, brand, steady stream of revenue and creating jobs.

In 2017, Vietnam’s automobile industry has received positive news with Vingroup’s decision to invest 3.5 billion USD in Vinfast automobile manufacturing complex, thus aiming to become a leading automobile manufacturer in Southeast Asia with a designed capacity of 500,000 units by 2025 with the localization rate of 60%. The move is a step toward realizing the dream of having made in Vietnam cars with acceptable price and high quality. Vingroup’s decision to invest in the automobile industry will open chances for customers to purchase cars with affordable price, environmental friendly, meeting domestic demands and developing national brand.

In the Information & Technology (IT) sector, Vietnamese company BKAV has launched its second generation of flagship model Bphone 2. This product showed the dedication and determination of BKAV after the failure of the first model 4 years ago. With this being said, the mission of BKAV is to create the foundation for smart phone manufacture in Vietnam. 

The mission and long-term strategy, which Nguyen Tu Quang, the founder of BKAV set is to transform BKAV into an independence technological manufacturer. “Our biggest desire is Bphone brand positioning, which means when mentioning smartphone in Vietnam, people immediately think of Bphone, like Iphone in US or Samsung in Korea. As such, BKAV can accept the loss to develop brand and expect in the near future, Bphone can overcome these two brands mentioned above” – Quang shared.
Nguyen Tung