Empowering Administrative Reform into Private Sector Development Tool

Speaking at the conference, VCCI President Vu Tien Loc said that one of bright spots of economic institutional reform of the Government of Vietnam in 2015 is the Prime Minister's Resolution 19/NQ-CP on key tasks and solutions to business environment improvement and national competitiveness enhancement in 2015-2016 dated March 12, 2015. In the light of Resolution 19, the Government is determined with radical reforms to raise Vietnam's competitive environment to the level of ASEAN's Top 4 countries in three years. To realise this objective, it is important to closely associate institutional reform with thinking reform. Accordingly, State agencies should be clearly self-aware that they are the strong rear in support of the business community's effective integration.

 

It is quite clear that, in the current context of deepening integration, if institutional reform lacks drastic action, Vietnam will become a "latecomer" in a "game play" called international integration. Therefore, he suggested business associations and companies have a thorough look into draft economic laws to have lively practical comments for lawmakers to complete draft laws and submit them to the lawmaking National Assembly for consideration and ratification. That is also why businesses should contribute to improving the business and investment environment to make it more open, convenient and competitive for doing business.

 

Remarking on the role and importance of the private sector in the economy, Loc noted that if the State sector plays a leading "locomotive" role, the private sector is an engine to speed up economic development. Hence, institutional reforms must entail changing behaviours and attitudes of government employees and enhance institutional dynamism in the direction to the formation of a strong administrative background and making administrative reform an effective instrument for the accelerating development of the private sector. He stressed that, "If the private sector is developed strongly enough, Vietnam will lose in the race of integration with other countries in the region and the world".

 

Vice Chairman of HCM City People's Committee Tat Thanh Cang appreciated the important roles and contributions of the business community to the country's economic development, especially the private sector. In HCM City, the private sector is developing both in number and quality as well as forms like private companies and joint stock companies (in which the private sector holds from 51 percent of the stake onwards), limited liability companies and individual business establishments. This sector has made important contributions to the cause of accelerating socioeconomic development, raising tax revenue and creating jobs for local people. Being aware of the role and importance of the private sector, the municipal government always attaches much importance to improving and liberalising the business and investment environment, gradually forming an equitable business environment for all economic sectors, especially the private sector.

 

Mr Herb Cochran, Executive Director of the American Chamber of Commerce in Vietnam (AmCham), said, on December 12, 2014, the United States Agency for International Development (USAID), AmCham and VCCI signed a memorandum of understanding on the establishment of the Vietnam Trade Facilitation Alliance (VTFA). This privately-led organization will provide policy and technical support for the General Department of Customs and trade promotion agencies in Vietnam. More importantly, VTFA will support the implementation of commitments in free trade agreements to which Vietnam is a prospective signatory, so as to improve the competitive capacity of domestic enterprises and foreign firms operating in Vietnam by developing a healthier and more transparent business climate.