Resolution 02/NQ-CP: Testament to Government Determination and Business Aspirations

Resolution 02/NQ-CP of 2024, underscores the government’s commitment to fostering a conducive business environment. This resolution is a testament to the government’s recognition of the business community’s role in the nation’s economic landscape. The resolution is expected to bolster investor and business confidence, ignite entrepreneurial drive, and catalyze economic rejuvenation and growth. In an effort to reflect on a decade-long journey of business environment enhancement and national competitiveness improvement, Vietnam Business Forum conducted an interview with Dr. Tran Thi Hong Minh, President of the Central Institute for Economic Management (CIEM).

Since 2014, the Government has been issuing annual resolutions aimed at enhancing the business environment and bolstering national competitiveness. As we reflect on this decade-long journey, how would you assess the effectiveness of these initiatives? Have the outcomes aligned with the initial expectations?

The Government’s reform initiatives, which have been in place since 2014, are primarily focused on enhancing the business environment, fostering innovation, boosting competitiveness, and promoting sustainable development. These reforms are shown in annual resolutions (Resolutions 19/NQ-CP from 2014 to 2018 and Resolutions 02/NQ-CP from 2019 onwards) that outline specific objectives and solutions, drawing upon the rankings of esteemed international agencies. The resolutions underscore the importance of institutional reform, regulatory changes, and administrative procedure overhauls.

Reflecting on the decade-long journey of issuing annual resolutions aimed at business environment reform and competitiveness enhancement, it is evident that few other reform programs have received as much attention from the Government as this one. This underscores the Government’s commitment to improving the business environment and bolstering economic and corporate competitiveness. Concurrently, the resolutions serve to stimulate entrepreneurial spirit and motivation, encouraging investors and businesses to collaborate, contribute, and offer policy recommendations to the Government.

Over the past decade of resolution implementation, many efforts and reform initiatives have been undertaken, resulting in spillover effects and good outcomes. These achievements have been recognized by international organizations and have garnered high praise from both domestic and foreign business communities and experts. Thanks to the concerted efforts and determination of central and local authorities, Vietnam has emerged as an attractive investment destination and a dynamic, open economy. The country’s standing in prestigious global rankings has seen significant improvement. For instance, market performance, as indicated by the Economic Freedom Index, has seen a dramatic rise, moving from 178th place in 2014 to 59th in 2024. E-government rankings have improved from 99th (2014) to 86th (2022), while innovation capacity has advanced from 71st (2014) to 46th (2023). Tourism competitiveness has also improved, moving from 75th (2015) to 52nd (2021).

In specific areas such as business condition reform, management, and specialized inspection, notable progress has been made. Particularly, the State administration of exported and imported commodities has undergone reform in quality inspection, food safety, quarantine, and other activities.

Indeed, the quality of the business environment has seen positive improvements in recent years, although the degree of advancement varies across sectors. In its resolutions on the business environment, the Government has set ambitious yet achievable goals to provide strong motivation for ministries, branches, and localities. However, some fields, such as property rights and logistics efficiency, have not met their targets, indicating the need for accelerated reforms and the active involvement and direction of central and local authorities.

The introduction of Resolution 02 serves as a catalyst and an additional fulcrum to bolster entrepreneurial spirit among investors and businesses

The Government annually issues Resolution 02/NQ-CP, with the 2024 edition emphasizing the ongoing commitment to reform and improve the investment and business environment, thereby bolstering business confidence in the Government. Could you elaborate on the significance of Resolution 02 of 2024?

Resolution 02, a distinct program of the Government, underscores its commitment to business environment reform. Issued and enforced annually, this resolution reflects the Government’s prioritization of direction and administration. As such, it is subject to regular monitoring, supervision, and pressure, thereby necessitating and fostering positive changes and reforms.

In 2023, businesses grappled with lots of challenges, both internal and external. Barriers to investment and business became increasingly formidable, and the business environment was fraught with complex cross-sector issues. This significantly impacted the confidence and motivation of investors and businesses, resulting in underutilization of corporate resources.

To support businesses in overcoming these challenges, the Government promptly issued Resolution 02 at the outset of 2024. This resolution outlines the primary tasks and solutions for enhancing the business environment and national competitiveness. The introduction of Resolution 02 serves as a catalyst and an additional fulcrum to bolster entrepreneurial spirit among investors and businesses. Consequently, the business community is reassured that the Government, in collaboration with central and local bodies, is actively seeking solutions to eliminate legal and enforcement obstacles and difficulties for businesses.

Furthermore, international organizations frequently cite Resolution 02 as testament to Vietnam’s institutional reform efforts. As a result, the image, position, and competitiveness of the Vietnamese economy on global rankings have been significantly elevated. This is important for attracting foreign investment, promoting international trade, and implementing free trade agreements.

In order to embody the reformative spirit of Resolution 02 and achieve the desired outcomes, what specific solutions will be prioritized?

The guiding principles, objectives, tasks, and solutions outlined in Resolution 02 rapidly address the concerns of businesses, indicating imminent resolution. The effective implementation of this resolution will catalyze state administration reforms by fostering collaboration and support for businesses in their pursuit of new growth drivers. Consequently, the business community harbors high expectations regarding the execution of the resolution’s tasks and solutions.

The Government recognizes the urgency and necessity of implementing the solutions proposed in the resolution comprehensively to achieve all set objectives. As such, the engagement, initiative, and active participation of central and local agencies, particularly their leaders, are important determinants of the outcomes of these reforms. Additionally, the role of independent supervisors and assessors is pivotal in evaluating the performance and effectiveness of central and local agencies’ implementation efforts.

Moreover, businesses play an indispensable role in these reforms. They are required to enhance their management capabilities and internal capacities, actively learn and regularly update relevant legal regulations, and proactively share issues and contribute policy recommendations.

Reform is a continuous process that requires sustained effort. Only through consistent commitment can Resolution 02 lay a strong foundation for businesses to recover and further develop.

Thank you so much!

By Quynh Ngoc, Vietnam Business Forum