LEGISLATION DECIDES THE SURVIVAL OF ENTERPRISES

 

Mr. Dau Anh Tuan, Head of Vietnam Business Forum Magazine - VCCI said that these laws had significant impacts on the competitiveness and survival of almost all of Vietnamese companies. "Not the quality of goods or management capabilities, a document born determines the survival of the enterprise. There are documents which not only promote the growth of the business, but they also may lead them to failure" Tuan said.

For example, there are a decree assigning those who are heads of printing companies must graduate university or college. In fact, nearly 3000 enterprises operating in this sector, which have good development, are not managed by people who had graduations. However, some companies run by those who successfully defended a PhD thesis in printing field went bankrupt. So, this decree is not in accordance with the business operations. It could not promote the revenue figure, increase their market shares or even guarantee the business success. There are so many entrepreneurs who succeeded without college degree such as Colonel Harlan Sanders known as founder of Kentucky Fried Chicken (KFC), Ray Kroc who is founder of McDonald’s and Walt Disney, founder of the Walt Disney Company.

Mr. Tuan also showed another inappropriate regulation on wastewater. For instance, a 10,000 big farm has to meet the demand of wastewater level A which is quite fresh and able to drink. This requirement is hardly to fulfill because its norms are really high and seem as a challenge to not only Vietnam but Japan and Korea also.  

According to Mr. Nguyen Dinh Cung – Head of CIEM, another regulation to export rice is having a more than 10,000 ton warehouse. He thought that this provision has no real scientific basis, distorts competition and only protects the interest of a group of people doing business in this sector.

In conclusion, rules, regulations and different decree should have clear objectives, legal clarity and base on politic and scientific basis. Moreover, it must ensure the benefits of all companies and promote fair competition, not restrict or distort the market.