"Leverage" for financial enterprise integration

Free trade agreements (FTAs) are an important 'lever' to help financial enterprises expand, develop their business and integrate internationally.

Free trade agreements (FTAs) are considered a "lever" for financial enterprises to integrate, however, the business community in this field is also facing many difficulties in taking advantage of the opportunities brought by FTAs. Accordingly, improving capacity and training high-quality human resources to increase the competitiveness with international financial institutions for enterprises, especially small and medium-sized enterprises in finance, is extremely important.

Mr. Le Anh Van - Director of the Center for Legal Support and Human Resources Development, Vietnam Association of Small and Medium Enterprises shared about this issue with Cong Thuong Newspaper.

Free trade agreements (FTAs) bring many opportunities but also many difficulties for businesses in the financial sector. Illustrative photo

What is your assessment of the impact of FTAs ​​on the business activities of small and medium enterprises in the financial sector in recent times?

Currently, most small and medium-sized enterprises operating in the financial sector mainly play consulting, supporting, and intermediary roles, including sectors such as: Tax consulting, financial consulting services, accounting and auditing services, credit support, insurance consulting, and human resource development training.

According to our records, businesses in this field have developed relatively rapidly in recent times. This shows that the market for financial consulting services is growing, especially in the context of Vietnam participating in and signing many Free Trade Agreements (FTAs).

Free Trade Agreements (FTAs) play an increasingly important role in promoting trade and investment liberalization; in particular, FTAs ​​are an important lever to help small and medium-sized enterprises in the fields of tax consulting, finance, and banking expand their business, enhance their competitiveness, and build international relationships.

However, opportunities always come with challenges. First of all, it must be affirmed that financial enterprises are facing many difficulties in taking advantage of FTAs. This reality comes from the internal nature of enterprises and the strict requirements from the FTA commitments.

Among them, it is worth mentioning that enterprises are limited in knowledge, internationalization capacity, financial resources and technology. On the other hand, the competitive pressure from large enterprises is very fierce. For example, enterprises do not have enough capacity to analyze exchange rate fluctuations or interest rates in the region to advise customers on profit optimization. Or other challenges come from legal barriers and complex international standards when international enterprises always require financial audits according to IFRS standards (international financial reporting).

Mr. Le Anh Van - Director of the Center Director of the Center for Legal Support and Human Resources Development, Vietnam Association of Small and Medium Enterprises. Photo: Quoc Chuyen

Are limitations in financial capacity, labor resources, personnel, etc. the bottlenecks that prevent financial enterprises from effectively utilizing FTA commitments, in your opinion?

As the challenges mentioned above, so far, the biggest bottleneck for small and medium-sized enterprises operating in the financial sector in implementing FTAs ​​is the lack of internal capacity to meet international requirements to compete with large enterprises.

In particular, businesses, especially small and medium-sized enterprises in the financial sector, are lacking staff with in-depth knowledge of FTAs, as well as a clear understanding of international standards and experience working with international markets. This makes it difficult for small and medium-sized enterprises to compete and take advantage of opportunities from FTAs. This reality has led to problems such as: not meeting international standards, losing customers to large enterprises, not being able to take advantage of incentives and market opportunities in terms of tariffs, etc.

In the context of strong integration today, can you suggest some key solutions to remove bottlenecks, as well as help financial enterprises effectively utilize FTAs?

To help small and medium-sized enterprises (SMEs) in the financial sector such as tax consulting, credit support, and auditing services to enhance their capacity, specific solutions are needed from both the business and the State perspectives.

Accordingly, from the business perspective, it is necessary to invest in improving internal capacity, focusing on training human resources to meet international standards, especially on standards such as IFRS (accounting and auditing), ESG (sustainable finance), and international legal regulations. Support employees to participate in specialized certification programs such as ACCA, CFA, or short-term courses on international tax and financial consulting.

In addition, businesses need to improve internal management. Specifically, it is necessary to standardize work processes and reports according to international standards to meet the requirements of large or cross-border customers; apply modern technology through investment in digitalization, digital transformation in management such as applying financial management software, tax analysis, and automatic auditing to increase efficiency and accuracy. Take advantage of big data and artificial intelligence (AI) tools to predict risks, analyze markets, and optimize services.

At the same time, businesses need to increase their search for cooperation opportunities with large companies or international organizations to learn and enhance their reputation. Build relationships with international partners through economic forums, seminars, or exchange programs. Connect with other businesses in the industry to share experiences, technology, and customers. In particular, it is necessary to focus on niche markets, which is to develop specialized consulting and support services, such as FTA tax consulting, ESG auditing, or credit support in specific industries such as agriculture or technology.

On the association’s side, it is necessary to promote support for improving professional capacity through in-depth training courses on international standards such as IFRS (accounting and auditing), ESG (sustainable finance), and AML (anti-money laundering) for businesses. Invite international experts or large organizations to share experiences and update new knowledge on requirements from FTAs. Provide documents, research reports, and guidance on legal regulations and technical standards related to FTAs.

At the same time, strengthen the role of a bridge between small and medium enterprises and the market to help enterprises access preferential capital sources, new technology, or foreign partners; organize or sponsor enterprises to participate in international fairs, economic forums, and business exchange events; provide information on international markets and support enterprises to approach potential customers.

In addition, the Association can call for funding from international organizations or establish a support fund for small and medium-sized enterprises in the industry. Provide financial support programs or preferential loans to help businesses invest in technology, train human resources, improve internal capacity...

Thank you!

Source: https://congthuong.vn/hiep-dinh-thuong-mai-tu-do-fta-don-bay-cho-doanh-nghiep-tai-chinh-hoi-nhap-362108.html