In the ever-evolving Vietnamese business community, a strong trend of multidisciplinary linkages has emerged, particularly among medium, small, and micro-sized enterprises. These linkages have created connection networks between manufacturing enterprises, service providers, and consumer partners, leading to enhanced trade situations and growth rates for member businesses. This article explores the benefits of multidisciplinary linkages and the challenges faced by businesses in Vietnam, while also highlighting the importance of coordination between the state, industry organizations, and economic entities to encourage and maximize the potential of these linkages.
The Rise of Multidisciplinary Linkages
In today’s modern economy, the trend of business partnerships is gaining popularity due to the numerous benefits they offer to participating parties. Dr. Cao Dinh Kien, from the Faculty of Business Administration at the Foreign Trade University, emphasizes the significance of business cooperation activities in helping enterprises expand their scope, scale of operations, and competitiveness. As technology advances and globalization trends accelerate, businesses increasingly rely on collaboration to reduce costs and increase their market presence.
Recognizing the potential for multi-sector economic development and the advantages of international economic integration, the Vietnamese government has implemented policies to encourage businesses to engage in multidisciplinary linkages. By opening the economy and actively participating in global economic organizations, Vietnam has created opportunities for growth and development. However, despite the formation of many business links, there is still a lack of initiative from participating entities, especially small and medium-sized enterprises (SMEs) that stand to benefit the most from these activities.
Challenges and Opportunities for Businesses
In Vietnam, business associations have primarily remained at a simple level, focusing on horizontal and cluster linkages to form craft villages or associations within specific industries. While large enterprises occasionally associate with small enterprises and business households for non-core business activities through leasing or contracting, the rate of conducting linkages for core business activities or participation in the global value chain remains low. One of the reasons behind this is the predominantly household and individually-run Vietnamese economy, which lacks standardized production processes and quality. As a result, it becomes challenging for large enterprises or foreign entities to establish long-term trust and cooperation.
To encourage business linkage activities and overcome these challenges, coordination is required from the state, industry organizations, and economic entities. Functional branches should create a favorable legal framework, appropriate institutions, and policies that cater to different types of businesses. Moreover, professional organizations in all economic fields should play a crucial role in facilitating communication through seminars and consultations. These platforms can help businesses find opportunities to connect, develop industry value chains, and expand their operations domestically and internationally.
Coordinated Efforts for Success
To effectively support business linkages, organizations need sufficient financial resources and human expertise to carry out advisory roles. Economic entities, including businesses and business households, must be proactive in seeking change, self-improvement, and actively participate in the process of forming value chains. The initiative of economic actors plays a key role in the establishment and operation of economic links. By proactively seeking opportunities to cooperate and solve difficulties within their respective value chains, economic entities can harness the socio-economic benefits of business links.
Through collaboration, businesses can tap into economies of scale, gain access to new markets, and share resources and expertise. Multidisciplinary linkages also foster innovation through the exchange of ideas, technologies, and best practices. By diversifying their networks, businesses can mitigate risks and adapt to changing market conditions more effectively. Additionally, multidisciplinary linkages contribute to the overall growth and development of the Vietnamese economy.
The rise of multidisciplinary linkages in the Vietnamese business community presents significant opportunities for growth and development. By establishing connection networks between manufacturing enterprises, service providers, and consumer partners, businesses can enhance their trade situations and growth rates. However, to fully realize the benefits of these linkages, coordination is essential from the state, industry organizations, and economic entities. With the right support and proactive engagement from all stakeholders, businesses in Vietnam can thrive in an increasingly interconnected and competitive global economy.