Accordingly, Mr. Nguyen Bao Quoc – General Director of International Consumer Product Investment Joint Stock Company (ICP), which owns S&B automatic retail infrastructure (Select and Buy), shared with the Securities Investment Newspaper about the difficulties, as well as the enterprises’ expectations about the new policies.
As a young business, but ICP already owns a system of automatic retail outlets throughout Vietnam, would you tell us, how does the support policies of the State affect the Company?
The Government’s determination to reform institutions, as well as administrative procedures, helps us – the founders of ICP – have more confidence in starting a business. In recent years, the contact with state management agencies to implement administrative procedures has made significant progress. In particular, the processing time of procedures is shortened, creating great conditions for businesses to actively plan their business.
In your opinion, what is the biggest difficulty of SME in Vietnam?
SMEs face many barriers, as Vietnam does not yet have a favorable environment for accessing long-term capital. Not to mention equity capital, businesses nowadays mainly access banks’ capital with strict conditions and are required to have collateral as real estate, even though their business plans are clear and feasible. Meanwhile, the capital mobilization channel from the stock market is not really suitable to support SMEs. It is these shortcomings that make it very difficult for Vietnamese enterprises to grow and to compete in the initial period.
Specifically, in the field of building auto retail infrastructure, what challenges does ICP face? How has the company overcome those barriers?
When building automatic retail infrastructure, ICP faces other retail channels such as supermarkets, traditional markets, traditional grocery stores … However, it is convenience, modernity, quality along with price Guaranteed competition from major ICP partners such as Coca-Cola, Ajinomoto, Vinamilk, TanTan, Suntory Pepsi, URC, Nestle… helped us overcome difficulties in the early stages. In addition, ICP also received the absolute trust of partners when implementing the installation of automatic retail infrastructure in the channels of 7 major cities in Vietnam where the system was deployed and installed.
In addition, the methodical business plan and the implementation organization with the modern management model platform has persuaded partners to provide products, trust in direct contracting or strategic cooperation.
The challenge of developing the system across the country, with the fastest possible speed in ICP’s business strategy is not an easy one. We made it through by adopting a shared business approach, collaborating with the mindset of an “fourth industrial revolution” that is growing at an exponential rate.
What action do you expect “the Tectonic Government” to take to help Vietnamese SMEs overcome difficulties and develop more?
In my opinion, the Stock Exchange is a bridge to build a trading market, or at least a receiving place for businesses to disclose transparent information wishing to raise capital, so that professional investors can find, screen, and then pour investment capital.
In addition, the State does not collect income tax, or further reduces the number of businesses with revenues below 20 billion VND / year during the first 1-2 years since its inception to promote the entire population to start a business. In fact, the amount of tax collected from these small businesses is negligible compared to the fact that all citizens seek to start a business.
I also hope that in the coming time, the reduction of time for administrative procedures will continue to be strengthened.
Thank you, sir!
