The hanoi union of associations of industry and commerce

The Hanoi Union of Associations of Industry and Commerce The Hanoi Union of Associations of Industry and Commerce Bởi: The Online Management Training Company The Hanoi Union of Associations of Industry and Commerce Big plans ahead for Hanoi’s private sector Background The Hanoi Union of Associations of Industry and Commerce (HUAIC) today is a product of the Doi Moi era, when government policy in Vietnam shifted toward open market reforms It functions as a facilitating institution for businesses in the market economy, representing and protecting their legal rights and offering information exchange among members and government partners HUAIC promotes trade investment and cooperation among businesses, facilitates business ventures with foreign investors, and provides services such as brand building and competitiveness training The first Hanoi industry and commerce association dates back to 1956, led by what was known in the terminology of the time as ‘nationalist bourgeois’ Bui Gia Hung This association was mandated to mobilize the industrial and commercial sector to support the private and capital reform policy The association continued during the war but was dissolved in 1975 Ten years later, Doi Moi again allowed people to go into business for themselves but after a year there were only about 20 private business, all factories Then the Politburo issued a decision allowing small business owners and individual manufacturers to form an association In early 1989, businesspeople in the city then proposed establishment of their own representative body under the name of the Hanoi Industrial and Technological Association Word of the new association attracted the interests of more small business owners and after a great deal of effort, in 1996 HUAIC was born 1/5 The Hanoi Union of Associations of Industry and Commerce HUAIC has been very active in advocating for the legal and business environment Its representatives now participate in drafting or revising trade law, laws on banks and credit organizations, tax law, corporate tax law, VAT, land laws, the Enterprise Law and Investment Law The Association also conducts market research and has participated in several studies together with the National Economics University and other institutes Member services Mapping the future HUAIC was instrumental in preparing the plan for the South Thang Long Industrial Park, where it seeks to provide spaces for its members And through its Trade Promotion Centre, the Association has been successful in matchmaking between businesses domestically and internationally Hundreds of companies have received support to design projects, conduct market research and attend foreign trade fairs The group established its Trade Promotion Center in 1998 when no agencies, not even the Ministry of Trade, had such a facility The center is administered by the Association It is its own legal entity, has its own seal and generates its own finances, and after eight years has proven its role as a bridge between local enterprises and domestic and international markets Hundreds of enterprises have received funds to conduct market research or take part in trade fairs both domestically and abroad Before the launching of the current information portal, HUAIC has also collected some 10,000 legal documents and several hundred thousand pages of materials for business research Access to credit and financial support The Association has established relations with organizations that support domestic and international enterprises, such as the Danish International Development Agency (DANIDA), Mekong Private Sector Development Facility (MPDF) and the Japan Bank for International Cooperation (JBIC) Once members have established relations with enterprises they turn to direct contact and only return to the Association when necessary Over 30 enterprises have received $2000 to $3000 for grants from DANIDA to develop business partnerships in Denmark Over 20 enterprises have received loans of VND to billion each from MPDF as well, and 20 enterprises have received loans of approximately VND 55 billion total from JBIC to expand production Partnerships The Association has established dynamic relationships with many domestic and international organizations, including the Beijing Industry and Trade Association and 2/5 The Hanoi Union of Associations of Industry and Commerce other Chinese groups to facilitate business on both sides It has also been active in the following: • Partnership with ZDH (Germany) • Partnership with the Asia Foundation (U.S.) • Works with the Asia World Research Institute (Japan) to recruit mechanics and welders to participate in technical training courses • Partnership with JETRO • Works with IMF and the World Bank in creating a more favorable environment for business through annual business forums in Vietnam • Participates in linkages between business associations of ASEAN and India chaired by the Prime Minister of India HUAIC has also joined with domestic research institutes and associations such as VCCI, the industry and trade associations of Ho Chi Minh City, Dong Nai, and Can Tho, and associations in steel, tea coffee, sea food and wood to exchange information and to organize conferences, workshops and dialogues Fact Sheet Name of association: Hanoi Union of Associations of Industry and Commerce HUAIC Year of establishment 1996 Number of members - Over 1,000 businesses- sectoral associations Type of organization Business Association Term of General Meeting years Organization and staffing: Executive Board: Chairman, Vice Chairmen (2 women), 19 commissioners (6 women) Missions • Represent and protect legal rights of members • Policy advocacy • Bridge communications between businesses and government agencies • Promote trade and investment • Promote business linkages and cooperation • Provide training services 3/5 The Hanoi Union of Associations of Industry and Commerce Services and Facilities Line Membership • • • • • • Trade and Training Promotion Centre Legal Consulting Service Centre “Doanh nghiep & Kinh te thu do” Newspaper Infrastructure Consulting Centre Pro-poor Fund (planned) Business Development Research Institute (planned) City Fatherland Front Representative Mr Vu Duy Thai, President Contact Chairman: Mr Vu Duy ThaiAddress: No 64, Thuy Khue street, Hanoi, VietnamTel: +84-4 733 4375 - 7281314Fax: +84-4 843 4794 E-mail: hhoicgthg@hn.vnn.vn Webstie: http://www.huaic.org.vn Turning points New endeavors HUAIC is currently planning two projects in parallel, a Pro-poor Fund and the Business Development Research Institute The Pro-poor Fund originated from an inspiration for larger firms to conduct corporate social responsibility programs This will raise funds from HUAIC members and domestic and international organizations to sponsor disadvantaged individuals, businesses that need support and poor children who show talent and the willingness to better themselves Target beneficiaries include the disadvantaged in Hanoi and individuals who demonstrate talent, notably young adults who demonstrate skills in technology, architecture, music, arts, and business The program also reaches out to victims of accidents and natural disasters It will grant limited cash support to target groups as funds for procurement of production materials or equipment, and as scholarships The Business Development Research Institute (BDRI) was inspired by Vietnam’s accession to the World Trade Organization, which will bring both opportunities and challenges for members The challenges will come from foreign competition and will dramatically increase the need for capacity building in domestic entrepreneurship BDRI, which operates on service fees, will function as a research institute on macroeconomic policies, economic institutions and the issues of business administration, financial management and human resources It will create a network of high profile researchers from national and regional institutes as well as business leaders Currently, the Institute has been able to bring together 20 scientists (professors and doctors) and six notable business leaders HUAIC is now finalizing procedures for the establishment of the institute, slated to come into operation at the end of 2007 It is also re-designing 4/5 The Hanoi Union of Associations of Industry and Commerce its “Doanh nghiep & Kinh te thu do” Newspaper as “Thoi bao doanh nhan nay” (Modern Entrepreneur Times) Lessons learned • The most serious problem facing enterprises today is space This grows out of several factors, including a lack of land, inefficient administration, lack of knowledge among enterprises themselves, and lack of mutual understanding between enterprises and authorities HUAIC has prepared plans for the South Thang Long Industrial Park (119.5 ha) and acts as guarantee for the Infrastructure Development Company, where it seeks to meet the demands of space for its members It has also organized many training courses to improve management capabilities of members and acts as the connection between enterprises and authorities • As Vietnam has joins the WTO, the demand for better international-caliber business practice will grow Enterprises need closer contact with foreign businesses This it is not easy for smaller local entrepreneurs HUAIC, with its status and reputation, facilitates communication between local and foreign businesses • Traditional business loans require high collateral But there are other capital sources from developed countries, through groups such as DANIDA, MPDF, and JIBIC And with its network, HUAIC can put members into contact with these organizations as well as with other commercial banks which are members of HUAIC, such as VP bank, Ocean Bank and AB Bank • Although HUAIC has provided a strong package of services to its members, it must continue growing Members have requested consulting services, for example, more study tours to learn more hands-on experience in other companies, and better newsletters Members have also called for greater professionalism in HUAIC administration 5/5