Business Forum

Last updated: Monday, April 22, 2019


Vietnam Business Forum 2017: Further Easing Burdens on Business

Posted: Monday, December 18, 2017

“The Government treasures and welcomes investors and enterprises to do business and start up a business in Vietnam but it does not welcome dishonest business. The Government strictly base on the law to treat enterprises that commit acts of polluting or breaking the sustainability of the natural environment, negatively affect traditional cultural and social values, illegally employ underage workers, have discriminatory actions and neglect workers' rights.”

This affirmation by Prime Minister Nguyen Xuan Phuc at the Vietnam Business Forum (VBF) 2017 was cheered by the business community.

Highest GDP growth in 10 years
He said, Vietnam's economy is buoyantly developing and achieving inclusive results in all fields. It reached and exceeded all 13 planned targets, thus exciting the business community and the society and strengthening the public confidence. Remarkably, GDP growth reached 6.7 per cent, the highest in nearly 10 years.

Each pence of investment capital in the economy not only benefits businesses but is also a "vote of confidence" for the government for its efforts to reform all levels and sectors of the economy and build a government of facilitation and service. It is also a source of encouragement for the government and the business community to jointly develop in the common house of Vietnam, he added.

Planning and Investment Minister Nguyen Chi Dung said that, with the direction and management of the Government and the Prime Minister, ministries and localities achieved satisfactory results. Business forums, meetings and dialogues were regularly organised at all levels in 2017. Authorities actively heeded questions and difficulties faced against enterprises. The Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and the Ministry of Science and Technology among others actively reviewed and reformed business conditions, simplify administrative procedures, and reduce specialised inspection procedures to facilitate enterprises to do business.

Those efforts have added confidence to the business community. Both new business start-ups and operation-resumed companies increased from a year ago. In the first 11 months of 2017, over 116,000 companies were founded with a total registered capital of over VND1,000 trillion, an increase of 14.1 per cent in entities and nearly 42 per cent in value over 2016. In addition, more than 24,000 enterprises resumed operations, bringing newly active companies to 140,400 in the first 11 months of 2017.

Prioritising infrastructure development, reducing transaction costs
Prime Minister Phuc said, Vietnam has much to do to further improve its business environment and competitiveness, aiming to enter the group of best ASEAN countries, head for high OECD standards, and strengthen the close cooperation between FDI companies and local partners.

To develop with the business community in the coming time, the Government prioritises infrastructure development investment, creates smart, effective connectivity, reduce transaction costs, and enhance the competitive of businesses, investors and the economy, he said. In particular, the Government encourages increased investment in education and science and technology and regards humans and technological backgrounds as growth engines in the coming decades.

In addition, the Government is determined to maintain macroeconomic, social and political stability. This is a competitive advantage in the context of uncertain and unpredictable world. The Government will continue to push forward economic restructuring, SOE reform and financial and banking system reform; deal with bad debts; control budget deficit and public debt; reform the tax system in a bid to reduce financial burdens on businesses and improve welfare and social security. In particular, in the short term, the Government will continue to flexibly use fiscal and monetary instruments to support the economy, promote employment and improve people's incomes.

At present, the Government is raising the quality of legal institutions and policies by enhancing transparency, robustness, safety and efficiency, promoting the rule of law, enhancing the capacity of state governance and economic governance to sustain growth, ensuring continuous social advancement, pushing up the low-income class towards medium and high income groups. “Social advancement is key to maintaining the movement of an active rotation, and mutually promoting middle-class growth and economic growth. The business community is both a driving force and a medium for the Government to realise its vision and aspirations,” said Prime Minister Phuc.

Mr Sagara Hirohide, Co-Chairman of Vietnam Business Forum Consortium, said that, to review the way we have gone past, look at future challenges to overcome and embrace opportunities, solve outstanding issues that may hurt business development, Vietnam still has a lot to do because concerns about transparency and effectiveness of stakeholders, limited business and investment environment and labour productivity may affect national competitiveness and reduce future appeal to foreign investors in the future.

Thus, he thought that Vietnam needs to develop strategies and action plans; research and develop solutions for better labour productivity and a better business environment; seek for factors that boost industrial growth and drive private sector to invest more and improve financial health. All these will contribute to enhancing the business environment and facilitate private enterprises to jump high and thrive.

Quynh Anh

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