Đào tạo kỹ năng liên quan tới hiểu biết chính trị và pháp luật trong kinh doanh quốc tế cho các doanh nghiệp nhỏ và vừa Việt Nam

Nội dung text: Đào tạo kỹ năng liên quan tới hiểu biết chính trị và pháp luật trong kinh doanh quốc tế cho các doanh nghiệp nhỏ và vừa Việt Nam

1. TRAINING ON SKILLS CONCERNING GOVERNMENT AND LEGISLATIVE REQUIREMENTS NEEDED IN INTERNATIONALIZATION FOR VIETNAMESE SMALL AND MEDIUM-SIZED ENTERPRISES ĐÀO TẠO KỸ NĂNG LIÊN QUAN TỚI HIỂU BIẾT CHÍNH TRỊ VÀ PHÁP LUẬT TRONG KINH DOANH QUỐC TẾ CHO CÁC DOANH NGHIỆP NHỎ VÀ VỪA VIỆT NAM Dr. Le Tien Dat Thuongmai University Abstract In developing countries such as Vietnam, small and medium-sized enterprises (SMEs) are considered as the primary source of employment creation and output growth. The development and internationalization of SMEs, therefore, have been highly considered and supported by the government with a range of incentives and policies. However, the shortage of international managerial skills, including government and legislative skills, makes Vietnamese SMEs hesitate in capturing international business opportunities and struggling in overcoming barriers, especially chances and challenges coming from free trade agreements that Vietnam has signed such as EVFTA. The purpose of this study is to identify skills concerning government and legislative aspects that Vietnamese SME managers need in internationalization, and propose training programs to develop such skills. The research adopts a qualitative orientation. Empirical data were collected from 58 SME potential and current exporters in three main cities of Vietnam, through group- style semi-structured interviews. The outcome of this study is expected to be helpful for SME managers, training institutions and government agencies in the development and provision of appropriate training programs to improve the skills concerning government and legislative aspects for Vietnamese SME managers in internationalization. Based on that, Vietnamese SMEs may have more sustainable development and seize opportunities from FTAs. The study brings new insights around the human resource development capacity building in the SME sector in developing countries including Vietnam. Key words: Internationalization, international management skills, government and legislative skills, developing country, Vietnam Tóm tắt Trong các nước đang phát triển như Việt Nam, các doanh nghiệp nhỏ và vừa (DNNVV) được coi là nguồn lực chính tạo việc làm và gia tăng sản lượng. Do đó, sự phát triển và quốc tế hóa của các DNNVV đã được Chính phủ khuyến khích với nhiều ưu đãi cùng các chính sách. Tuy nhiên, thiếu các kỹ năng quản lý kinh doanh quốc tế, bao gồm sự hiểu biết về chính trị và luật pháp quốc tế đã làm cho nhiều DNNVV của Việt Nam không mạnh dạn trong việc nắm bắt các cơ hội kinh doanh quốc tế và vượt qua các rào cản, đặc biệt là những cơ hội và thách thức từ các hiệp định thương mại tự do mà Việt Nam đã ký kết như EVFTA. Mục đích của nghiên cứu là xác định những kỹ năng liên quan đến các khía cạnh hiểu biết chính trị và luật pháp mà các nhà quản lý DNNVV Việt 734
2. Nam cần trong quá trình quốc tế hóa cũng như đề xuất các chương trình đào tạo để phát triển các kỹ năng này . Nghiên cứu sử dụng phương pháp nghiên cứu định tính. Các dữ liệu thực nghiệm được thu thập từ 58 DNNVV xuất khẩu tại 3 thành phố chính của Việt Nam qua các cuộc phỏng vấn nhóm tập trung (focus group). Kết quả của nghiên cứu này được mong đợi là sẽ giúp ích cho các nhà quản lý DNNVV, các cơ sở đào tạo và các cơ quan chính phủ trong việc phát triển và cung cấp chương trình đào tạo phù hợp nhằm nâng cao những kỹ năng liên quan đến hiểu biết chính trị và luật pháp cho các nhà quản lý DNNVV Việt Nam trong quá trình quốc tế hóa. Trên cơ sở đó, các DNNVV Việt Nam có thể có sự phát triển bền vững hơn và nắm bắt tốt hơn các cơ hội từ các FTA. Nghiên cứu mang lại những cái nhìn mới về phát triển nguồn nhân lực trong khu vực DNNVV ở các nước đang phát triển nói chung và Việt Nam nói riêng. Từ khóa - Quốc tếhóa, kỹ năng quản lý quốc tế, chính phủ và kỹ năng lập pháp , nước đang phát triển, Việt Nam 1. Introduction Nowadays, SMEs have better conditions to internationalize their business and acquire numerous benefits from this process, such as maintaining gradual development, seizing potential business opportunities, accessing more advanced technologies and funding sources, and obtaining international business experiences (Andersson & Florén 2011; Campbell-Hunt 2003; Oviatt & McDougall 1997; Paunović & Prebežac 2010; Subrahmanya 2014). Being considered as the primary source of employment creation and output growth in developing countries such as Vietnam, the development and internationalization of SMEs have been highly considered and supported by the government with a range of incentives and policies (Goverment of Vietnam 2012) Nevertheless, in the process of transitioning from a controlled economy to a market-oriented economy, a great number of Vietnamese SME managers still lack vital skills to compete successfully in international markets (Steer 2001, cited in Neupert, Baughn and Dao 2005; Agency for Enterprise Development 2012) The shortage of international managerial skills, including government and legislative skills, makes Vietnamese SMEs hesitate in capturing international business opportunities and struggling in overcoming barriers. Consequently, many SMEs that are able to internationalize either through opportunities and/or domestic push factors, choose not to do so (Agency for Enterprise Development 2012; Thai & Chong 2013). This paper identifies the skills concerning government and legislative requirements that Vietnamese SME potential and current exporters need to internationalize their business. Subsequently, based on such identification, a comprehensive training program to improve such skills are developed and provided. 2. Literature review 2.1. SME internationalization and barriers concerning government and legislative aspects Generally, SMEs are motivated to internationalize their business when they find that domestic markets for their products or services are on the decline or are going to be 735
3. saturated (Daniels, Radebaugh & Sullivan 2013; Paunović & Prebežac 2010). This decision may also be made when SMEs want to develop their business in new foreign markets. Expanding markets not only help SMEs maintain gradual development, but also provide potential business opportunities. In addition, numerous beneficial learnings may be acquired when SMEs deal with experienced foreign partners. For instance, they may have opportunities to access more advanced technologies. Collaborating with other foreign firms may also provide SMEs with other funding sources. Furthermore, SME managers not only practice skills they already have as part of internationalization, but may also adopt further useful skills for their current and future work (Paunović & Prebežac 2010). In the modern economy, SMEs have better conditions to internationalize their business, due to the increasing changes in economies, technologies and societies, as well as fewer constrains in international trade (Andersson & Florén 2011; Campbell-Hunt 2003; Oviatt & McDougall 1997; Subrahmanya 2014). However, in international process, SMEs may be challenged by a number of barriers, especially those with regard to government and legislative requirements (Albaum & Duerr 2008; Bilkey 1978; Cateora, Gilly & Graham 2009; Czinkota & Ronkainen 2013; Leonidou 2004; Moini 1997; Paunović & Prebežac 2010; Seringhaus & Rosson 1990; Szabo 2002; Terpstra & Sarathy 2000). According to Albaum and Duerr (2008), for businesses operating in an international context, the assistance of government through policies and incentive programs has increasingly become important. Such involvement and sponsorship of the government may be conducted by the government alone or via the joint effort of the government and business. For instance, company grouping programs organised by the government often labelled as ‘network schemes’ and frequently offered to SMEs, especially for exports, relate to numerous countries. Encouraged and facilitated by government, these company grouping programs help SMEs to spread costs and risks in foreign market penetration, and to share experiences and information as well as resources. In addition, to promote exports, the government may also use so-called ‘regulatory supportive activities’ to directly enhance the competitiveness of companies’ products and encourage greater involvement of enterprises in exporting, especially SMEs. Two types of regulatory supportive activities in promoting exports are state trading (the government may involve itself in export business transactions) and the granting of subsidies to enterprises to engage in exporting (Albaum & Duerr 2008). However, problems that may arise from government assistance often relate to a shortage or insufficiency of aid funding, in some countries, or the inability of exporters to adequately leverage such assistance. In some cases, the assistance from governments may not be appropriate to the specific needs of the exporter (Seringhaus & Rosson 1990). In addition, governments of target export countries may use various methods to control companies entering their markets, such as entry restrictions, price controls, special tax rates, and exchange controls. In such cases, entry restrictions may delay or restrict the product flow of export companies into the target markets. Price controls may also reduce the profitability of firms, special tax rates may increase the price of export products in foreign markets, and exchange controls may impose difficulties in sales, especially in profit repatriation (Cateora, Gilly & Graham 2009). 736
4. Foreign regulations and restrictions may include general rules and standards, tariff barriers, nontariff barriers, import licences and permits, and other additional compliance- related documentation (Jensen & Davis 1998; Koksal & Kettaneh 2011; Milanzi 2012). To restrict foreign enterprises from entering markets, tariffs and quotas are two of the most common methods used by governments. “A tariff is a tax on imports, and is stated either as a percentage of value (ad valorem) or on a per unit basis” (Albaum & Duerr 2008, p.142). The tariff may push the price level of the imported goods up to that of domestic substitutes, and create pricing and promotional difficulties for exporters. Meanwhile, “quotas are specific provisions limiting the amount of foreign products that can be imported” (Albaum & Duerr 2008, p.143). In addition to tariffs, exporters are also affected by nontariff barriers that may exist in many forms (Albaum & Duerr 2008). According to Czinkota and Ronkainen (2013), nontariff barriers include product standards, testing or approval procedures, subsidies for local products, and bureaucratic ‘red tape’. For example, France requires all contract offer terms, and advertisements to be in French. In addition, Japan has high standards and certification requirements for products entering into its market. For example, Japan requires all pharmaceutical products imported into Japan to be tested in Japanese laboratories. This type of stringent requirement is extremely challenging for SMEs with limited resources. Furthermore, instability in some overseas markets due to economic, societal or political factors may be barriers for exporters conducting international business. In such instances, economic factors may be related to a low per capita income, inflation or foreign debt. Societal issues may stem from religious fundamentalism, ethnic tensions or a high degree of government corruption; whereas political matters may concern an authoritarian regime, conflicts with other countries, or the control of the military. Such political instability may place exporters in difficult situations, including where their property is confiscated, their activities are closed or suspended, or repatriation of earnings is prohibited. Generally, the more involved the export companies are in a foreign market, the heavier the impact of political issues on its business operations (Leonidou 2004; Terpstra & Sarathy 2000). In some cases, the home government may restrict export activities to certain countries, or restrict products due to national security or foreign policy significance. For example, the US Government prohibits its firms from dealing with North Korea, Libya, Cuba and Cambodia, and has special restrictions on trade with Iran and Iraq. The US also uses strategic technology controls to limit the products its firms can sell abroad, which might also be used against other foreign companies. For instance, the US penalised Toshiba, a Japanese company, for selling Russia technology that allowed submarines to be too quiet to be detected by the old listening devices of the US Navy (Terpstra & Sarathy 2000). In addition to the laws and policies of export countries, as well as home government requirements, issues concerning legal procedures and documentation including customs declarations, shipping arrangements and other legal procedures can also be 737
5. challenging for international exporters. For example, firms may find it difficult to understand what type of paperwork is required. Such problems may force SMEs to incur extra costs, time losses or red tape, which in turn may cause a negative attitude towards completing such procedures (Moini 1997). When engaging in exports, managers should carefully comply with and complete all necessary procedures and documentation to avoid violating any regulations and receiving a refusal of payment by financial organisations. Errors in export transactions and documentation may lead to major delays or losses. Therefore, exporters are required to have well-rounded knowledge to make the right decision across all stages and processes of the export supply chain (Albaum & Duerr 2008). 2.2. Training needs concerning government and legislative requirements in internationalization Historically, training needs analysis has been seen as the phase or tool by which the training content is determined (Roberts 2006). According to Tracey (2004), p.678, training needs analysis is defined as “the first step in the training process, designed to identify performance gaps that can be remedied by training. It consists of surveillance, investigation, and data analysis”. Various scholars such as Neupert, Baughn and Dao (2005); Nordstrom and Kleiner (1990); _ENREF_314_ENREF_206and Yu et al. (2005) have investigated the training needs with regard to government and legislative requirements in internationalization. To begin with, Nordstrom and Kleiner (1990) believed that managers conducting international business should be aware of the rules, laws and regulations of local countries. With this valuable knowledge, they are more likely to be able to overcome any legal barriers such as those concerning trades and tariffs. The authors also noted that as the legal system significantly varies from country to country, global business managers need to be clear about the differentiating legal practices in the countries they engage in. An understanding of the political directions and of the political developments in countries they conduct business in or want to expand into are perceived as fundamental to avoiding politically motivated issues. In addition, an understanding of government policies was also identified as one of the most important skills for international managers by Yu et al. (2005). Neupert, Baughn and Dao (2005) also argued that a strong legal understanding is an essential international management skill. 2.3. Vietnamese SMEs development and internationalization In both developed and developing countries, SMEs play a critical role in economic development and integration (Tambunan 2008). Particularly in developing countries such as Vietnam, SMEs are often considered the primary source of employment creation and output growth. The role of SMEs is more crucial due to their potential contribution to the improvement of income distribution, exports growth, employment creation and poverty reduction. This sector also often leads to the development of entrepreneurship, industry and rural economies (Goverment of Vietnam 2012) There have been numerous plans and policies issued by Vietnamese government to support SMEs such as the Government Decree No. 90/2001/ND-CP, dated 23 November 738
6. 2001, and the Government Decree No. 56/2009/ND-CP, dated 30 June 2009, on supporting the development of SMEs (Government of Vietnam 2001, 2009). To provide further comprehensive assistance for Vietnamese SMEs, the Prime Ministerial Decision No. 236/2006/QD-TTg, dated 23 October 2006, on the approval of the SME Development Plan 2006-2010 was issued (Government of Vietnam 2006). Subsequently, the Prime Ministerial Decision No 1231/QD-TTg, on the approval of the SME Development Plan 2011-2015, was issued on 7 September 2012. The overall objectives of this plan can be stated as: “Increase the development speed and competitiveness of medium and small enterprises, create favorable and healthy environment for investment and business for medium and small enterprises to contribute ore in the economic development, enhance the national competitiveness and international economic integration” (Goverment of Vietnam 2012, p.2). Despite the increasing role of SMEs in Vietnam’s economy growth, as well as the supports of government for the development of this sector, the country’s socialist tradition is seen as a factor that inhibits the development of SMEs. In the process of transitioning from a controlled economy to a market-oriented economy, the number of SMEs with qualified, experienced and skills leaders to compete successfully in international markets remain insignificant (Steer 2001, cited in Neupert, Baughn and Dao 2005; Agency for Enterprise Development 2012). The major factor preventing many Vietnamese SME manager from internationalizing their business is their fear of uncertainty and failure, which partly due to the shortage of managerial skills, especially those regards government and legislative requirements. Often because of this fear, many Vietnamese SMEs that are able to internationalize either through opportunities and/or domestic push factors, choose not to do so (Agency for Enterprise Development 2012; Thai & Chong 2013). There have been various researchers such as Bartram, Stanton and Thomas (2009); King- Kauanui, Ngoc and Ashley-Cotleur (2006); Neupert, Baughn and Dao (2005); Quang and Dung (1998); Stanton and Pham (2014); Thang and Quang (2005a); _ENREF_280Thang and Quang (2005b); _ENREF_206_ENREF_149_ENREF_282and Thang, Thu and Buyens (2008) who have investigated training in Vietnam. However, studies on training needs of SME managers, especially those examining the skills with regard to government of legislative requirements that Vietnamese SME managers need in their internationalization are still lacked. It is this gap that this paper intends to explore and further expand on. 3. Research - objectives and methods 3.1. Research objectives The purpose of this paper is to identify and develop a needs profile of training requirements for Vietnamese SME managers. Implications to develop training programs based on government and legislative skills needed by Vietnamese SME potential exporters and SME current exporters are provided. Key constructs needed in international business have been established from extant literatures such as those of Neupert, Baughn and Dao (2005); Nordstrom and Kleiner (1990); _ENREF_314_ENREF_206and Yu et al. (2005). The outcome of this study is expected to be helpful for SME managers, training institutions 739
7. and government agencies in the development and provision of appropriate training programs to improve the skills concerning government and legislative aspects for Vietnamese SME managers in internationalization. The following main research question has been investigated and guides this study: What are the perceptions of Vietnamese SME potential and current exporters with regard to training needs to improve government and legislative skills, and human resources (HR) support needs to internationalize their business? 3.2. Data collection In this study, 60 SME managers in three main cities of Vietnam were approached, and 58 of them agreed to attend group interviews. These participants were diversified based on the variety of exporting stages (current vs. potential), regions (Hanoi, Da Nang and HCMC), and gender (male and female). Among 58 participants, potential exporters were 23 and current exporters were 35. Four focus groups were undertaken in each region. The number of participants in Hanoi was thirteen males (56.52%) and ten (43.48%). In Da Nang, there were ten male participants (52.63%) and nine female participants (47.37%). In HCMC, there were six male participants (37.50%) and ten female participants (62.50%). Such diversification of socio-demographic factors of gender and location are important considerations to provide coverage of most types and ranges of participant views (Bryman & Bell 2011). Agency for Enterprise Development (AED), under the Vietnam Ministry of Planning and Investment (MPI) facilitated in the random selection of participants, based on the AED’s list of registered SMEs, and the provision of contacts and referrals to approach SME managers to interview. The utilization of qualitative interview methodology in this study was considered most appropriate. The qualitative approach allowed the researcher not only to support the SME managers during the interviews, but also to investigate detailed responses from participants with regard to training and HR needs, which in turn lead to tailored measures to support Vietnamese SME managers in internationalization. During the semi-structure interviews, the opinions coming from the various perspectives of participants may lead to additional discussion on areas that the researcher had not previously considered. Such discussions can be useful in expanding interviewer understanding and further developing the study outcomes (Saunders, Lewis & Thornhill 2012). The “interview protocol” which includes a list of interview questions was used to assist the interviewer. Such interview questions were developed from the literature (Neupert, Baughn & Dao 2005; Nordstrom & Kleiner 1990; Yu et al. 2005). The main interview questions asked in this study were related to the skills concerning government and legislative requirements that Vietnamese SME potential and current exporters need in exports, and the reasons why they need such skills. These skills may concern the understanding with regard to legal environment, specialized laws in international business, legal barriers in exports, export incentives of the government, legal export procedures, and legal certification and documents. 740
8. The focus-group style interview was utilized in this study and allows the participant’s perspectives to be presented in the ways that are different from an individual interview, such as through further discussion or questioning among participants. This is often deemed an important benefit of such qualitative research (Bryman & Bell 2011). The number of participants in each group was between three and eight. After the selection of participants from the AED list, the AED assisted in recruiting the participants to attend interviews. The group-style interviews were undertaken in Vietnamese in 2013. The interview lasted approximately 60 to 90 minutes. To ensure the effectiveness of focus group interviews in this study, participants were invited to the offices of the AED in the three relevant cities (Hanoi, Da Nang and HCMC), which were all centrally located. Using a room with comfortable facilities, the seating of participants was arranged in a circular fashion, so that they were facing inwards to increase the effectiveness of the group discussions. The focus group interviews commenced with an introduction where the interviewer thanked participants for their attendance and provided a brief background about both the interviewer and the goal of the study. The use of a voice recorder for analysis purposes, and the format of the focus group interviews were also explained to the participants. To collect quality data for this study, the interviewer had to ensure that all members of each focus group interview had the opportunity to respond to the questions and express their views. The interviewer had to tactically balance between encouraging participants to respond to specific questions and involving them in open discussion. Seeking this balance was important for the data to be collected sufficiently and insightfully. Due to the rich experiences of SME managers in their fields, a number of new ideas were developed from the discussion, which added depth and significance to the data collected. 3.3. Data Analysis In this study, after the stage of data collection, the researcher transcribed the qualitative data from Vietnamese into English, and then read through all of transcriptions to obtain a general sense of the information (Creswell 2014). Afterward, the transcriptions were summarized by compressing the long statements into briefer statements which reflect the main sense of what had been said in the interviews (Kvale 1996). By doing so, the researcher became familiar with principal themes and had control over and sought insights into the large volume of trancribed data, which were helpful for the stage of coding data (Saunders, Lewis & Thornhill 2012). After reading through the transciptions, an interesting one was picked out, which the researcher would read carefully to gain its underlying meanings, and noted in the margins. The researcher repeated that step with some other selected transciptions. Consequently, the list of initial topics was developed, and then similar topics were then clustered as main topics, unique topics and leftovers. Such categorised topics were processed as codes and utilized for processing the qualitative data (Creswell 2014; Tesch 1990). In the following stage, the relevant “units” of data, which might be a sentence, some sentences, a paragraph, a number of words, a line of transcript, were attached to the 741
9. codes. In such process, the reasearcher not only matched the appropriate codes but also considered if there were new categories and codes that emerged. Subsequently, the researcher found the most descriptive wording for topics and transformed them into categories. However, due to the large number of resultant topics and categories, it was expedient for the researcher to rearrange them by grouping topics that related to each other. The final decision on the names for each category needed to then be made, and the data materials belonging to each category were then assembled in one place with the purpose of perfoming the preliminary analysis. Some of the existing data were recoded (Creswell 2014; Tesch 1990). The qualitative computer software, QSR Nvivo, was used to assist the researcher to code, organize and sort the data. The software made this process more efficient than it would have been via hand-coding (Creswell 2014). The findings of this study’s analysis were conveyed by using a narrative passage in which the detailed discussions were based on main themes, sub-themes, specific illustrations, multiple perspectives from individuals, and quotations or a discussion with inter-connecting themes (Creswell 2014). Main themes emerged from this study’s group discussions, while the verbatim responses were used to emphasize the content of the responses (Kumar 2014). As the final data analysis stage, an interpretation or meaning of the data was made, based on the researcher’s personal interpretation, with the supports of information derived from the literature (Creswell 2014). 4. Evidence In this study, both the potential and current exporters identified a range of desired skills concerning government and legislative requirements in internationalization, including an understanding of the following: legal systems of Vietnam and export countries, specialized laws in international business, legal certification and document requirements, government incentives, and any potential legal barriers in exporting. In addition, SME current exporters perceive the need to better understand legal export procedures, laws applied in different states within a country, and export laws applied in specific sectors. Skills concerning government and legislative requirements have been identified as an important component of internationalization across the studies of _ENREF_214_ENREF_314Neupert, Baughn and Dao (2005); Nordstrom and Kleiner (1990); and Yu et al. (2005). This group of skills may help SME managers to solve a number of matters with regard to government and legislative aspects (Albaum & Duerr 2008; Bilkey 1978; Cateora, Gilly & Graham 2009; Czinkota & Ronkainen 2013; Leonidou 2004; Moini 1997; Paunović & Prebežac 2010; Seringhaus & Rosson 1990; Szabo 2002; Terpstra & Sarathy 2000). In this study, both exporter groups voiced the need for a general understanding of the exports legal environment, particularly the legal systems of the foreign markets they wish to engage in or are engaging in, as well as the legal systems of Vietnam. A limited understanding of such legal systems is perceived by many as the main barrier to Vietnamese companies exporting or expanding their exports. 742
10. An understanding of specialized laws relating to exports and internationalization was highlighted as a need by both potential and current exporters. In particular, potential exporters expressed the need to better understand laws governing taxation and international trade laws, which include appropriate rules and customs for handling trade between countries. Current exporters instead focused on seeking an understanding of specialized laws concerning particular export activities such as legal knowledge on using arbitration, returning exported products, or the processing of products imported temporarily or for re- export. Possibly due to their previous experience, an understanding of legal procedures involved in the exports process was emphasized by current exporters. They would like to have a better understanding of legal procedures relevant to the parties they have to work with, including how to work with them in order to complete required legal procedures for exports. Both groups of potential and current exporters highlighted the need for knowledge on the required legal certifications and documents in exports. Potential exporters emphasized a need to understand the documents required by customs offices, as well as certificates relating to product quality in exports. Current exporters instead highlighted a need for knowledge on more specific documents required in the exports process, such as the certification of materials of origin. Both exporter groups stressed the need to better understand export incentives from both the Vietnam Government as well as governments in export markets. Potential exporters want to know about Vietnamese policies supporting SMEs exporters, particularly any likely reductions in taxes when they export. They also want to better understand the extent to which the laws of export countries are likely to protect foreign businesses. In contrast, current exporters desire more up-to-date knowledge about supportive policies in foreign countries and in Vietnam, especially those policies applying to the exports sector. They believe that such government incentives often exist for only a short amount of time, and thus they should be updated about this valuable information regularly. An understanding of the potential legal barriers in exports is considered important by both the potential and current exporters. The potential exporters want to be aware of potential trade barriers introduced by governments or public authorities to make imported products less competitive than locally produced items. They also desire an understanding of any potential technical barriers, such as technical standards with regard to the size, shape, design, labeling, marking and packaging of export products. The current exporters emphasized the importance of gaining knowledge on banned lists of products and activities in other countries, to avoid violating the laws of export countries and potential unnecessary criminal liabilities. In addition, current exporters expressed the need for knowledge in other legal areas, such as export laws applied in different states of a country, and export laws applied for specific sectors in a country. Based on their previous experiences in exporting to numerous countries across a range of export fields, the exporters have some recognition of the legal differences among states and among categories of products; thus they believe that a deeper 743
11. legal understanding in these specific areas would help them to expand their market share in the export markets more effectively. Table 1: Skills concerning government and legislative requirements needed by potential exporters Understanding the legal environment Understanding the legal systems in Vietnam and in export countries Understanding about specialized laws in international business Understanding specialized laws relating to trade, tax, tariffs and payments Understanding legal barriers in exports Knowledge concerning legal barriers in exports, particularly understanding potential trade barriers, export rules and technical barriers such as technical standards Understanding rules and regulations of the governments of export countries that restrict companies entering their markets Understanding export incentives of the governments Understanding policies in Vietnam that support SMEs in export, especially the reduction in taxes in export Understanding government incentives of target export countries in encouraging overseas enterprises Understanding legal certification and documents Understanding legal certification and document requirements, especially those relating to customs forms, as well as certifications concerning the quality or hygiene standards of export products Table 2: Skills concerning government and legislative requirements needed by exporters Understanding specialized laws in international business Understanding specialized laws concerning particular export activities such as in using arbitration, in returning the exported products, or in the processing of products imported temporarily or for re-export Understanding legal certifications and documents Understanding of legal export documents, such as certification of materials origin Understanding export incentives of governments Sufficient and up-to-date knowledge about supportive policies in foreign countries and in Vietnam, especially supportive policies applied in specific export sectors Understanding legal barriers relating to prohibited items in exports Knowledge of prohibition on export items Understanding legal export procedures Understanding legal procedures which must be completed as part of the export process Better understanding of legal procedures relevant to parties that exporters have to deal with, including how to deal with them to complete the required legal export procedures Understanding export laws applied in different states in one country, and those 744
12. applied for specific sectors in a country Understanding export laws applied in different states of a country, as well as those applied for specific sectors in a country, to expand their market share in the export markets more effectively Understanding the legal environment Understanding the legal systems in both Vietnam and export countries 5. Implications When developing training programs for Vietnamese potential and current exporters, some common topics that training providers should consider include: legal systems of Vietnam and export countries, specialized laws in international business, legal certifications and documents, export incentives of governments, and potential legal barriers in exports. Besides, separate training programs for current exporters should consist of some additional topics, including legal export procedures, export laws applied in different sates/regions in one country and laws applied in specific sectors. The following sections describe the separate training programs for these two groups relating to relevant topics. 5.1. Government and legislative skills training programs for Vietnamese potential exporters in internationalization Training programs on understanding the general legal environment for Vietnamese potential exporters should firstly focus on the basic knowledge concerning international laws. This could involve explanations on common legal concepts and specialized terms used in export activities, such as payments and contract negotiations. For emphasis, sample contracts could be presented and discussed with participants. It is obviously impossible to provide training programs about the legal systems of all countries that Vietnamese managers want to export to. Therefore, short training courses could be facilitated to cover basic knowledge concerning legal systems and to review key issues in the export laws of both Vietnam and some of the main export countries and regions. Based on this initial introductory knowledge, SME managers should be able to better research and investigate actual legal issues relating to their potential export markets as well as their particular business when deciding to export. With regard to training programs on specific laws for potential exporters, the training content should concentrate on issues that receive the most attention from Vietnamese potential exporters, such as tax laws, tariff laws and trade laws. The legal barriers in export vary significantly from country to country and from sector to sector; each export business has to deal with different legal barriers and requirements. It is therefore impossible to cover all potential legal barriers for all potential exporters. Instead, the training on potential legal barriers in exports should provide examples of typical types of export barriers that the potential exporters could self-study to attain a deeper understanding that could be translated into their own export markets and products. 745
13. Similar to an understanding of potential legal export barriers, training on government export incentives should provide potential exporters with typical types of supports they can obtain for exporting. If possible, this training should also incorporate up- to-date information about supports the potential exporters have access to, especially those concerning borrowing credits to undertake export orders. In addition, the training should guide potential exporters on how to access further information with regard to such export supports. Finally, training on legal issues for SME potential exporters should include a review of the most commonly required certifications and documentation in exports. This could involve an introduction to the standard set of papers that have to be provided to customs offices in Vietnam and in most export countries. Again, it would be beneficial to provide samples of these documents to the participants. More common certification requests relating to export products should also be reviewed and discussed with potential exporters. 5.2. Government and legislative skills training programs for Vietnamese current exporters in internationalization When providing training programs on laws for Vietnamese exporters, laws concerning particular export activities should be considered. These could relate to a range of export activities, such as procedures for the return of exported products or the process for re-export. However, due to time limits, training courses that provide training on specialized laws concerning key and common activities in shipping and freight by Vietnamese exporters should be implemented. These could involve using case studies as examples, with lessons provided based on the good and bad experiences of exporters. It would be highly beneficial to expose participants to case studies to recognize potential traps and acquire skills to handle troubles that may arise in such situations. Training programs on the required legal certifications and documents for exporters should delve into details of specific contents. This could be a discussion on the typical requirements of some major markets which may be related to the certification of materials origin, safety standards and permitted percentages of components in the exported product. Knowing the key legal requirements of certain markets may help exporters better examine their export abilities and prepare strategies to expand into these markets (if they are not already in them). With regard to an understanding of government export incentives, the training should provide exporters with up-to-date information concerning supportive policies of both the Vietnam Government and governments in some key export markets. If possible, up-to-date information should be provided concerning government incentives for specific export sectors that receive the most attention from Vietnamese exporters. In addition, it would be beneficial to include an overview of sources for accessing up-to-date information on government support policies for exports, such as some relevant government agencies’ websites. A review of typical barriers when exporting to key markets and a list of banned categories of export products would also assist exporters as part of the training. In addition, 746
14. the training could provide examples of actions that may violate the laws of importing countries, so that Vietnamese exporters can potentially avoid these pitfalls. Similar to the training on supportive policies, training on export barriers could also provide an overview of sources of up-to-date information that Vietnamese SME exporters could access in regard to this. The training on legal export procedures should provide exporters with a better understanding of the various steps involved in the export process. It could include guidance on the more common legal procedures when exporting to some of the key markets. For example, guidance for Vietnamese exporters to complete export declarations when exporting to Europe would be useful. In addition, it would be beneficial to include in the training some experience-sharing activities relating to relevant topics such as using an agent to act on behalf of exporters in completing export procedures. So that export laws knowledge can be applied to various states in a country, the training could cover some of the main differences in export regulations, such as prohibited products or product entry requirements that differ across various states in larger countries like Australia and the US. In addition, an overview of potential sources for up-to-date information on these areas should also be provided to Vietnamese exporters. Another relevant training area relates to applying export laws across specific sectors in a country, which could discuss international trade regulations applied to some key sectors such as clothing, footwear and fashion, chemicals, and pharmaceuticals. Training on general understanding the legal environment would be beneficial not only for exporters who are relatively new to the exports field, but also for experienced exporters to better systemize their legal understanding. This training could focus on an introduction to basic knowledge concerning legal systems, as well as a review of key contents in export laws of Vietnam and some major potential export countries and regions. 6. Conclusion This paper reported on the analysis of training needs with regard to government and legislative requirements of Vietnamese SME potential and current exporters, and proposed appropriate training programs to support such SME managers in internationalization. Accordingly, training programs on topics such as legal systems of Vietnam and export countries, specialized laws in international business, legal certifications and documents, export incentives of governments, and potential legal barriers in exports, should be provided to both groups of SME managers. Further, the separate training courses for current exporters should include some additional topics, including legal export procedures, export laws applied in different sates/regions in one country and laws applied in specific sectors. The research outcome is expected to be beneficial to SMEs and training institutions in the development and provision of appropriate training programs based on actual needs of SME managers, in order to improve SME export performance. Especially, from this nationwide study, the government may use the findings to develop policies and strategies to enhance HR capacity building in the country’s development. Last but not least, the outcomes of this study are anticipated to make a contribution to the body of 747
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