Before recent positive signs of the Vietnamese economy, the European Chamber of Commerce in Vietnam (EuroCham) held the Special Dialogue themed “Will Vietnam be the next ASEAN Tiger?” with Planning and Investment Minister Bui Quang Vinh.
According to European Union Ambassador to Vietnam Franz Jessen, Minister Vinh of Vietnam has made a lot of efforts and taken drastic actions to carry out works related to overall macroeconomic reform. Specifically, the Ministry of Planning and Investment has served as a lead coordinator for international community and foreign partners in trade - investment cooperation, growth support and economic development of Vietnam. Vietnam has effectively reformed and integrated into regional and global economies. Ambassador Franz Jessen hoped that the European Union (EU) and Vietnam will soon conclude free trade agreement (FTA) negotiations, which bring benefits for both sides. The EU is committed to maintaining high funding for Vietnam in the coming years, he said.
According to Mr Oliver Massmann, Partner of Duane Morris and Board Member of EuroCham, the two new laws, namely amended Law on Investment and revised Law on Enterprises, will be effective on July 1, 2015 with open and transparent approaches that lead to more “doors” for enterprises. Besides, the laws revise reduced prohibited business activities to six and conditional business activities to 267 and demonstrate the greater transparency in investment and business licensing procedures. Besides, while speaking highly of positive signals of institutional reform of the Government of Vietnam, he frankly pointed out some shortcomings in State-owned enterprise (SOE) equitisation, M&As, opportunities and challenges to Vietnam when it joins the blueprint ASEAN Economic Community.
In response to interests and sharing of foreign partners, Minister Vinh said the Government of Vietnam is increasingly concerned about regional and international economic integration that brings opportunities and challenges for Vietnam. Besides, Vietnam is always aware that it cannot steer clear of competition in the integration process. Thus, if it does not try the best and have good preparations, Vietnam will face a lot of challenges and risks, even accept a loss on the home market.
Delving more deeply into existing economic issues, he affirmed that Vietnam's economy has basically overcome the toughest time and has returned to steady recovery, featured by the GDP growth of 6.03 percent in the first quarter of 2015.
Besides, with macroeconomic stability and controlled inflation, the Government of Vietnam is fiercely improving the business and investment environment in accordance with Resolution 19/NQ-CP dated March 18, 2014 on some major tasks and measures to further improving the business environment and enhancing national competitiveness in 2015 and 2016, Vietnam will reach the average of ASEAN+6 in late 2015. Institutional reform consistently sticks to modern socialist-orientated market economy and multi-sector market economic development like science, human resources, labour, public utilities and healthcare. In 2014, at the 8th plenary meeting, the 13th National Assembly passed a lot of important laws, including the amended Law on Investment and the amended Law on Enterprises drafted by the Ministry of Planning and Investment. Barriers to business and investment are removed to create an open, transparent environment full of opportunities for foreign investors.
In addition, the Government and relevant agencies are clearly aware that although Vietnam's economy has great potential and competitive advantages as geographical location and political security, it also faces lots of subjective limitations to overcome. Thus, signed and to-be-signed FTAs require Vietnam to reform to grasp these opportunities.
Among key fields, the Government of Vietnam is particularly calling investment capital for agriculture in accordance with Decree 210/2013/ND-CP on agriculture and rural investment encouragement policies. The Government will also pay attention and take drastic actions to speed up slowing SOE equitisation.
Regarding domestic automobile development and strategy planning, Minister Vinh said, 15 years after the first auto joint ventures were licensed, Vietnam’s automobile production development policy has failed. Without appropriate and timely incentives, the auto industry will face production downsizing and the market share will be grasped by imports. He hoped that the EU Delegation and the international business community as well will have greater support for the Government of Vietnam to develop all social and economic aspects.
Anh Phuong
Vietnamese
