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National cohesion needed to reduce dependence on China
29/05/2014

(VOV) -Vietnamese businesses should commit to lessening their reliance on imports from China, said National Assembly (NA) deputy Tran Xuan Hoa, Vietnam National Coal- Mineral Industries Group (Vinacomin) former Chairman.

Hoa shared his view with a Radio Voice of Vietnam (VOV) reporter on the sidelines of the ongoing 7th session of the 13th NA.

Reporter: As a former leader of a State-owned giant, what do you think Vietnamese businesses should do at present in the wake of complications in the East Sea?

Mr Hoa: The current circumstance requires that businesses act in unison to fully tap their inside potential. It’s time for the different economic sectors to act cohesively and cooperate for further economic growth of the country as a whole.

Reporter:  What steps should the Vinacomin undertake to take its best advantages?

Mr Hoa: Vinacomin has been successful in capitalising on its international strengths. Our businesses are getting involved in almost of all transport services following the form of build-operate-transfer model (BOT). Local private businesses can also participate in many large projects, such as Mao Khe, Mong Duong and Cao Son worth trillions of VND.

Reporter: Could you talk about shortcomings of State-owned enterprises?

Mr Hoa: They lack high sense of solidarity in fostering economic development. Vietnamese people have shown great solidarity during their past struggle against foreign invaders. However, in national construction, economic development and scientific research, their cooperation is still weak.

I worked in the coal industry for 37 years, and realized that we need a stronger link to achieve a common development goal.

Reporter: Which measures should be taken to help Vietnamese firms make full use of their internal strengths?

Mr Hoa:  The Government should issue incentive policies for the support industry to ensure an adequate supply of input materials for businesses, especially those operating in such fields as mechanical engineering, machine manufacturing, and garments and textiles.

For example, the local coal industry is overly dependent on imported input materials as domestic firms are not given priority in bidding and there is an over emphasis placed on selecting the lowest bid price.

Reporter: In your point of view, how does the East Sea tension impact on Vietnam’s mining industry?

Mr Hoa:  China is a huge market for the world. The local coal sector can effectively compete with China, however many other industries will initially face extremely tough challenges. The core matter is that Vietnamese businesses need to improve their processing technology.

The Government is urging processors to apply modern technology and draw up long-term development strategy in line with current situations.

The coal sector is taking two key measures to develop its machine manufacturing capacity and expand cooperation with other businesses and economic sectors on the domestic market.

It is essential to focus on diversifying trade relations with different countries.

Reporter: What is your assessment of Vietnam’s coal exports to the Chinese market in the face of the East Sea tension?

Mr Hoa: We still need a large volume of coal  for power plants. Therefore, we do not pay much attention to exports, but we import coal to serve the national electricity development plan.
Reporter :  Thank you.

(VOV)

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Tags: China, coal sector, input material, internal strength, Local businesses, mining industry, reliance, stronger link, support industry, Tran Xuan Hoa, tre, Vinacomin, đầu tư,