VCCI, Localities Stepping up Efforts to Improve Business Environment

Earlier, VCCI also signed a similar commitment with 42 other provinces and cities. Thus, the agency has inked an agreement on shaping a favourable business environment for enterprises with all 63 provinces and cities in Vietnam.

 

Speaking at the signing ceremony, Deputy Prime Minister Vuong Dinh Hue said that the signing of commitments between VCCI and 63 provinces showed the Government's determinations to reform the investment and business climate and create the trust for the business community. Importantly, these commitments must be translated into reality.

 

He said that, in the 30 years of reform, enterprises and entrepreneurs have always taken the lead in modernisation, growth, employment and wealth of the nation. Despite a sharp rise in numbers, the rate of businesses to population is still relatively low in relation to international and regional rates. Therefore, to boost up growth and restructure the economy, there is no other way rather than creating a more favourable environment for establishment of more companies.

 

According to statistics, Vietnam has nearly 10,000 new business start-ups a month. Hanoi, the capital of Vietnam, has 2,000 new companies each month and targets to have 400,000 companies by 2020. Ho Chi Minh City, the largest city in Vietnam, will have 500,000 active companies by that time. Deputy Prime Minister Hue hoped that Vietnam will have 1 million companies after five more years as expected by the Government. Nevertheless, many localities do not have strong commitments to new business start-ups, he stressed.

 

He added that the Government has carried out many measures like Resolution 19 on business environment improvement, the Decision 844/QD-TTg on national business start-up ecosystem. Specially, Resolution 35 of the Government specifies the Party's guidelines and policies on State laws. The Government is also actively preparing to submit amendments to 15 laws related to investment, business, customs, export and import to the National Assembly.

 

In addition, the Law on Small and Medium Enterprises (SMEs) Support will focus on supporting SMEs, start-ups and start-up ecosystem and assisting business households to be upgraded into enterprises.

 

He stressed that the Government will assign VCCI to build the business support index which will be announced annually, using business establishment and dissolution criteria, and business contribution index among other indicators to measure, examine and supervise the execution of commitments.

 

Deputy Prime Minister Hue asked local governments to implement Resolution 19 of the Government, improve the business environment, enhance provincial competitiveness indeed (PCI), create business-nurturing environment, and inspire companies to enter the market. He told provinces and cities to focus on supporting to develop SMEs with both direct and indirect policies on the principle of “non-discrimination.” At the same time, local authorities must also concentrate on upholding entrepreneurship and attracting foreign investors regardless of scale to set up satellite businesses.

 

Dr Vu Tien Loc, President of VCCI, said, the signing of the commitment by 21 cities and provinces looks like a 21-gun salute, hoping that this is not fired into the air but into the target of improving the local business environment.

 

For the first time, the Government has a comprehensive resolution on business development with a clear and definitive objective set to 2020: Vietnam has 1 million enterprises, and gives a clear message of building a government of facilitation, a government of integrity and a government of action that wholeheartedly serves the people and the business and provides a consistent, all-inclusive solution system for national development, he said.

 

"After three months enacting Resolution 35, the Government has shown its fierce resolve. By drafting 50 decrees guiding the enforcement of the Law on Investment and the Law on Enterprise, issuing many laws to revise many effective laws and collecting opinions from VCCI, the Government is determined to go forward with care and never accepts to argue out of the track," he added.

 

Dr Loc said the business confidence is seen not only in the Vietnamese business community but also in the international community, thus opening up more investment opportunities for Vietnam. For the first time in history, Vietnam has seen more than 100,000 enterprises set up in one year (as of September 2016). Without doubt, the resolution on start-up development is initially successful.

 

"The signing of the commitment with localities is the process of conveying the flame of reform from the central government to localities.  Therefore, the target of having at least 1 million businesses by 2020 is certainly within reach", he said.

 

VCCI will work closely with local authorities in their efforts to improve the business environment, promote business development, and accelerate reform. VCCI will ask local governments to pay special attention to the business community through local business associations; allocate the delivery of public services to business associations and work with business associations to draft business start-up development strategies and inspire entrepreneurship movements.