Lack of global competitive advantage, enterprises are hard to "live"?

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In order to develop in the deep economic integration, enterprises need to determine their competitive advantages. Photo: Nguyen Thanh

Recognizing the development opportunities of the business community in the context of digital economy, Dr. Vu Tien Loc, President of Vietnam Chamber of Commerce and Industry (VCCI), said that this is a great opportunity for small and medium enterprises and micro enterprises. The impacts of the digital revolution, internet, e-commerce will help this business group access the market more conveniently , especially the global market, remove the inherent disadvantages of enterprises and create equality with large enterprises.

The internationalization of these businesses will be a national strategy. With 98% of enterprises being small and medium enterprises, Vietnam is not out of the "game".

As an expert of training start-ups and e-commercial business, Nguyen Dinh Hung, general director of EDX Group analysed that "with the industrial revolution of 4.0, the productivity increased dramatically and demand was less than supply.

At this time, the value of the seller increased. The decisive factor to the market is not the producer but the seller. Those who have the demand source, have customers, then hiring processing will be winners.

Currently, large group like Metro, BigC ... are experiencing sales via internet, supermarket and online sale channel and invading the entire sales chain. When these groups dominated the selling source, they will squeeze the manufacturers.

"For example, when Alibaba buys the brands of Vietnamese businesses, they will take their goods into the market. Foreign enterprises have already dominated the buying channel, Vietnamese enterprises can not control them. Therefore, the global competition is to determine the national advantage, " Mr. Hung said.

Starting from the above analysis, in order to meet the demands of the revolution 4.0 and to develop in the context of deep economic integration, Mr. Hung said that the importance was that enterprises need to accumulate their global competitive advantages. The first was the brand. It meant that one small enterprise could not do, it required the brand alliance.

He pointed out that products of a business are not sold despite their good quality, if that business cooperate with Alibaba and attach the Alibaba brand to the products, those products will immediately be known and attract customers . If in Vietnam, we build a brand of a company or association that is strong enough to ensure quality and competitive prices, then that that brand can compete globally.

The second is the supply chain alliance to reduce the price and increase competitive advantage. In the alliance, enterprises should focus on their strengthens, which is professionalism and increase of efficiency.

Agreeing with Mr. Hung, some experts added that if the enterprise determines the global competitive advantages and identify clearly their strengths, enterprises should focus on them. For the weak side, enterprises can hire, even hiring foreign businesses if they do well.

More transparent, favorable business climate improves Vietnam' competitiveness According to the World Economic Forum (WEF)’s Global Competitiveness Report for the 2017-2018 period, Vietnam ranked 55th ...

For example, Vietnamese enterprises can hire Chinese enterprises. However, it is noted that individual businesses and small orders will be ineffective. If the enterprises form an alliance to order from Chinese partners, they will enjoy preferential prices and quality assurance.