Renewal and Progress

According to Deputy Prime Minister Vu Van Ninh, corporate competitiveness is a decisive factor in the globalisation trend. Once corporate competitiveness improves, the competitiveness of the economy and of products sharpens. This in return generates more jobs for workers and strengthens socioeconomic development.

 

Globalisation, international economic integration and trade liberalisation have become prominent economic trends in the contemporary world. Vietnam always applies consistent foreign relations lines that adhere to independence, self-reliance, peace, cooperation and development; and foreign relations policies that underscore openness, multilateralism, diversification, proactive and positive international economic integration, said Deputy Prime Minister Ninh.

 

Vietnam has to date established diplomatic relations with over 170 countries in the world, and expanded trade relations with over 230 countries and territories. The country signed over 90 bilateral trade agreements, nearly 60 investment promotion and protection agreements, 54 double or multiple tax avoidance agreements and plenty of bilateral cultural cooperation agreements with other countries and international organisations.

 

Vietnam has positive relationships with international financial and monetary institutions such as the Asian Development Bank (ADB), the International Monetary Fund (IMF), the World Bank (WB). Notably, this year is the 5th year since Vietnam has become a full member of the World Trade Organisation (WTO).

 

16 years after entering the Association of Southeast Asian Nations (ASEAN), regional cooperation relations between Vietnam and ASEAN increasingly deepen and develop. For Vietnam, ASEAN is always the top trading partner and investor.

 

The fulfilment of deep integration commitments for the formation of the ASEAN Community in 2015 has practically helped improve the domestic legal environment, facilitate business and attract foreign direct investment (FDI) and lay the groundwork for Vietnam to join bilateral and multilateral cooperation frameworks.

 

Asia - Pacific Economic Cooperation (APEC) Forum is also of very important significance. APEC is the biggest forum for development aid, accounting for 65 per cent of total foreign investment, 60 per cent of export value, 80 per cent of import value, and 75 per cent of international tourists to Vietnam. Most important strategic partners and economic partners of Vietnam are APEC member economies. Vietnam is seen as one of the most active members and made plenty of positive contributions to the APEC Forum.

 

In the past three years, Vietnam has actively proposed and implemented many initiatives and activities for the sake of ASEM, notably the successful organisation of several important conferences.

 

While Vietnam was broadening international relations and deepening integration into the world economy, the global economic crisis erupted, shaking many countries with financial crises and debt crises. Shrinking export markets exerted a very negative impact on our export-driven economy. Inner economic problems exponentially thwarted the business community. In that context, the Government still stood with resolve on the international integration path, and the reality proved that Vietnamese enterprises reaped success even in the very current difficult period by their constant effort and operating reshuffle.

 

Unquestionably, in addition to the Vietnamese Government’s effort to deal with difficulties, the support and endeavour of companies themselves play a vital role.

Income tax reduction aimed at boosting investment and enhancing competitiveness of the economy was already included to the Vietnam tax reform roadmap from now till 2020. With the two first resolutions of fiscal year 2013, the Government has decided to provide measures and solutions to support economic development and macroeconomic stability. In the short term, small and medium-sized enterprises (SMEs) have corporate income tax slashed to 20 per cent. Moreover, authorities will have measures to review and remove some tax lines and fees to ease financial burdens on businesses.

 

According to Deputy Prime Minister Vu Van Ninh, it is never simple to enhance corporate competitiveness. The low and unstable competitiveness of Vietnamese enterprises on the world market has not been significantly improved.

 

Domestic companies need to delve into this weakness and perform reshuffles to enhance competitiveness in a fast-changing world.

 

New Year often brings new hopes and opportunities. This year is believed to witness many reform programmes to adapt to a new global context. On the national level, major programmes are banking industry restructuring programme, public investment reduction programme, and SOE restructuring programme. At the company scale, many businesses are refreshing themselves by streamlining activities and focusing more on main activities and core values.

 

So, crisis is seen as an opportunity to make change where stronger, richer and more creative components will have an opportunity to rise up, both nationally and internationally.