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Policy advocacy weak in Vietnames business groups

Policy advocacy is the biggest weakness of Vietnamese business associations, according to a survey released on January 25 by the Vietnam Chamber of Commerce and Industry (VCCI).
Policy advocacy is the biggest weakness of Vietnamese businessassociations, according to a survey released on January 25 by theVietnam Chamber of Commerce and Industry (VCCI).

Policy advocacy refers to advocacy tactics, strategies and initiatives which target changes to policies and legislation.

Only 44 percent of interviewed associations reported participating inpolicy advocacy activities, while 56 percent admitted they had neveradvocated.

"This is a sad reality, as policy advocacy isconsidered one of the most important functions and responsibilities ofan association and aims to effectively protect members' rights andinterests," said a VCCI representative.

Only 38 percent ofassociations said that their policy advocacy activities were effective,while 53 percent were unsure and 2 percent judged their activitiesineffective.

On the bright side, 85 percent of surveyedassociations said they had organised dialogues with authorities toaddress their major concerns in taxes, land and natural resourcesmanagement and finances and 73 percent of associations had collectedtheir members' opinions on how to improve the domestic businessenvironment.

"The role of associations has become increasinglyimportant," said Dau Anh Tuan, deputy head of VCCI's Legal Departmentand a member of the surveying team.

However, local associationswere stuck in a vicious cycle, Tuan said, as insufficient financialcapacities and a shortage of materials caused associations manydifficulties in attracting skilled personnel. Without skilledhuman resources, it was hard for associations to offer professional andquality services for members. Failures to draw new members resulted incapital shortages, holding back operations.

He called for theState and sponsors to provide financial assistance that could helpassociations improve their corporate governance. "Closer co-operationbetween associations is also necessary," he said.

Vietnam SteelAssociation chairman Pham Chi Cuong agreed that associations haveencountered many challenges, with financial shortages being one of themost serious.

Cuong emphasised the importance of issuing a Lawon Associations that could help facilitate the development of localassociations.

The survey, conducted from July to September, interviewed 78 associations nation-wide. -VNA

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