Enhancing the effectiveness of cross-border trade investment for Vietnamese enterprises
- 165
- Enterprise
- 15:35 19/06/2024
DNHN - The trend of shifting from traditional business models to digital platforms is becoming increasingly popular and is considered an effective solution to help enterprises penetrate and expand export markets.
In recent years, Vietnam has achieved significant economic development milestones by promoting openness, integrating into the global economy, and actively negotiating and successfully signing many bilateral and multilateral Free Trade Agreements (FTAs). However, the unprecedented negative impacts of the Covid-19 pandemic on the global economy, including Vietnam, have posed numerous challenges to two main pillars of global economic growth: trade and investment, as supply chains have been disrupted and international capital flows have encountered many obstacles.
In this context, along with trends shaped by the fourth industrial revolution, global digital transformation has been emphasized as a solution not only to overcome the limitations of the pandemic period but also as a long-term strategy to restore operational efficiency and boost business investment activities. Accordingly, the trend of shifting from traditional business models to digital platforms is becoming increasingly popular and is considered an effective solution to help enterprises penetrate and expand export markets in the context of Vietnam’s deepening integration with the global economy.
![The trend of shifting from traditional business models to digital platforms is becoming increasingly popular and is considered an effective solution to help enterprises penetrate and expand export markets The trend of shifting from traditional business models to digital platforms is becoming increasingly popular and is considered an effective solution to help enterprises penetrate and expand export markets](https://media.doanhnghiephoinhap.vn/uploads/2024/06/19/enterprise-1718785664.jpeg)
Digital transformation helps enterprises expand markets
Digital transformation in trade promotion activities is contributing to changing the perceptions and trade mindset of people and businesses, creating a sustainable and long-term bridge for trade activities, and meeting the development trends of the current digital economy era. The application of information technology and digital transformation is no longer an option but has become a mandatory direction for all organizations and businesses to adapt and seize new opportunities to maintain and expand markets. This is considered a new and effective trend in product promotion processes, as well as a "golden" opportunity to optimally exploit the values of cross-border trade and investment activities.
Digital transformation brings many new opportunities but also presents significant challenges for businesses, including high investment costs for technology applications; difficulties in changing business habits and practices; challenges related to the lack of internal human resources to apply digital technology; lack of digital technology infrastructure; lack of information about digital technology; and difficulties in integrating digital technology solutions. Regarding human resources, digital transformation also sets conditions for the commitment and understanding of business leaders and managers and employees, as well as concerns related to data leakage of individuals and businesses.
Moreover, expanding cross-border markets with digital technology also comes with specific legal risks, and businesses may face the risk of disputes due to limitations in verifying partners or the authenticity of exchanges and transactions, such as not meeting directly to negotiate contracts, sign cooperation agreements, or directly viewing production facilities and processes, conducting work through online methods, email, video calls, etc., during contract execution. This is also a topic discussed at many legal support forums that accompany Vietnamese businesses in expanding to international markets recently.
“3 Enhancements” and “5 Strengthening” in digital transformation and digital economy development
On April 24th, during the 8th meeting of the National committee on digital transformation, Prime Minister Pham Minh Chinh, Chairman of the Committee, urged ministers, sector leaders, and provincial party secretaries and chairpersons to increase their determination and take decisive action in implementing national digital transformation tasks, focusing on "3 enhancements" and "5 strengthening".
The "3 Enhancements" include: (1) Enhancing awareness of the position, role, and importance of digital transformation among every citizen, enterprise, and especially leaders; (2) enhancing capacity for digital transformation, viewing it as a key priority task for resource allocation; and (3) enhancing public-private partnerships, leveraging public investment to lead private investment, and mobilizing all societal resources.
The "5 Strengthening" include: (1) Strengthening the completion of the institutional framework, creating a comprehensive legal corridor to promote national digital transformation and digital economy development; (2) strengthening the development of digital infrastructure and platforms as crucial foundations for the digital economy; (3) strengthening innovation and entrepreneurship in digital transformation; (4) strengthening the development of digital workforce and skills to meet socio-economic development requirements; and (5) strengthening cybersecurity and information security to protect the legitimate rights and interests of citizens and businesses, safeguarding national cyberspace sovereignty from the outset.
Alongside government efforts to enhance legal, institutional, and policy frameworks to support economic integration, enterprises need to proactively update regulations, policies, and laws, and receive advice and consultancy to devise effective business strategies when entering the global market.
In recent years, the United States Agency for International Development (USAID) through the global initiative INVEST has been collaborating with the Vietnam International Arbitration Center (VIAC) to improve the ecosystem providing and promoting Alternative Dispute Resolution (ADR) methods in Vietnam. The joint project between the two entities has been and is implementing activities for professional exchange, sharing international experiences for leaders, judicial officials, and related stakeholders at central and local levels, including judges, court clerks, and arbitrators; at the same time, raising awareness for the business community about the benefits of ADR and improving digital infrastructure to deploy online dispute resolution services to further enhance the efficiency and flexibility of arbitration and other ADR methods.
VIAC SYMPOSIUM: Cross-Border Trade and Investment in an uncertain economic context: Disputes and Arbitration
In recent years, Foreign Direct Investment (FDI) has been considered one of the important drivers of Vietnam's economy, helping Vietnam increasingly enhance its position in the global value chain. Besides, large Vietnamese enterprises have also been expanding into international markets in key and potential sectors such as public-private partnerships, construction, real estate, and renewable energy.
With the aim of creating an informative forum, focusing on discussing and addressing the concerns of investors and businesses about the Vietnamese market, while promoting the use of arbitration in dispute resolution to contribute to facilitating cross-border trade and investment, the Vietnam International Arbitration Center (VIAC), with technical support from the United States Agency for International Development (USAID), organizes a series of events named VIAC SYMPOSIUM 2024. The program will take place on June 26 & 27, 2024, in Hanoi. For more detailed information about the event series, please visit https://www.viacsymposium.vn
VIAC SYMPOSIUM 2024 will revolve around the theme "Cross-Border Trade and Investment in an Uncertain Economy: Disputes and Arbitration," whereby the discussion sessions will focus on reviewing and evaluating current economic fluctuations and discussing appropriate measures to overcome these obstacles. The forum aims to gather many experts, lawyers, researchers, the legal profession community, as well as investors and businesses domestically and internationally investing in Vietnam.
Tien Dat
Related news
#Free trade agreements
![Trade revenue set to eclipse 700 billion USD this year](https://media.doanhnghiephoinhap.vn/uploads/2022/05/28/trade-revenue-set-to-eclipse-700-billion-usd-this-year-1653707301.jpg)
Trade revenue set to eclipse 700 billion USD this year
Free trade agreements (FTAs) spurred Vietnam’s bilateral and multilateral trade, with 2022 revenues projected to hit a record 750 billion USD, according to experts.
Đọc thêm Enterprise
Hòa Phát Group leaders receive major pay hike during steel market crisis
Although the global steel industry is experiencing a crisis, Hòa Phát recorded a sharp increase in executive remuneration in the first half of 2024, with costs rising 3.4 times compared to the same period last year, reaching VND 112 billion.
Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
In the first eight months of the year, the number of businesses entering the market increased by 8.8%, but the number of businesses withdrawing also rose by 7.4%.
Businesses are the main actors and the greatest drivers of innovative startups
Dr. Đàm Quang Thắng – Chairman of the National Innovation Advisory Council has provided deep insights into the role of businesses within the innovative startup ecosystem.
General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
On the afternoon of August 22, General Secretary and President Tô Lâm received a delegation of the Vietnam Association of Small and Medium Enterprises. This important and meaningful event was organized by the Business and Integration Magazine.
BIDV financed the construction of Cap Saint Jacques Complex in Vũng Tàu City
The signing ceremony for the credit contract to finance the project was organized by BIDV and the Development Investment Construction Joint Stock Corporation (DIC) — the project's investor — in Ho Chi Minh City on August 19, 2024.
The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
On the afternoon of August 22, the VINASME will have the honor of meeting with the General Secretary and President Tô Lâm to report on the results of their activities. This significant event is organized by the Business and Integration Magazine.
Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
Dr. Tran Xuan Luong believes that real estate businesses that lack resources and strategy will certainly struggle to survive in the current competitive environment.
Tight control on foreign borrowing, businesses face more difficulties
Since 2022, borrowing foreign capital without government guarantees has become more difficult, and according to feedback from many businesses, part of the reason is the tight control policies on foreign borrowing from the State Bank of Vietnam.
Untying the knot of accessing investment capital for Vietnamese startups
The lifecycle of a startup is often shaped by funding rounds. Each funding round not only provides the necessary resources for the next stage of development but also serves as a milestone to assess the success and potential of the business.
Financial revenue - a bright spot for real estate enterprises
Financial revenue in the second quarter of 2024 has been an important bright spot, helping many real estate businesses maintain positive profits despite challenges from their core business activities, contributing to their financial stability.