Making business easier, the key to economic recovery

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In order to further improve the business climate and national competitiveness, Prime Minister Nguyên Xuân Phuc issued Resolution No. 2 on the continuation of the tasks and measures in this area for 2021. The government requires ministries, sectors, Provincial and municipal popular committees that they implement in a resolute, synchronous and efficient manner the tasks and measures set. There is a need to immediately address the gaps in coordination between relevant agencies and units, to focus on digital transformation and administrative reform…

An expected resolution

The resolution decides to continue supporting people and businesses to restore production and business, and overcome the negative impacts of the COVID-19 epidemic.

If improvements are only measured by statistics from one year to the next and without any comparison with the rest of the world, Vietnam would be poorly motivated in its reforms and would fall behind other countries in a rapidly changing world. mutation. This resolution meets the expectations of the business community for concrete and swift action by the government to remove obstacles that hamper their business activities and prevent them from seizing the opportunities of free trade agreements (FTAs), Vu said. Tiên Lôc, president of the Vietnam Chamber of Commerce and Industry (VCCI).

According to him, after the previous editions, more than 60% of the proposals of the VCCI and the companies had been taken into account by the government, the ministries and the departments. However, post-registration operations, reform and settlement of administrative procedures, remains one of the concerns to which the business community wants the government, relevant ministries and bodies to pay more attention to their processing, a he declared. Research by international organizations has shown that Vietnam ranks last in business administration among the top six economies in ASEAN. Improving the environment and business administration is therefore one of the main tasks of government, ministries and departments, he stressed.

The national business community hopes to gain more support from the government in such areas as training of human resources, effective implementation of the Investment Law in the form of public-private partnership (PPP), improvement of business competitiveness and issues related to administrative procedures. The government, departments and agencies should design and effectively implement business support programs, focused on micro, small and medium enterprises; proactively research and provide information to companies on market access and capital, labor market …

Four areas of assistance to companies

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In 2020, Vietnam achieved the dual goal of containing the COVID-19 pandemic and sustaining economic growth. Photo: Danh Lam / VNA / CVN

Over the past year, Vietnam successfully achieved its dual objective of containing the COVID19 pandemic and sustaining economic growth. With better economic, financial and fiscal policies, now is the time to step up the attraction of foreign investment. Domestic and foreign companies welcome the measures adopted by the government to support them. However, these measures will need to be adapted in a timely manner to correspond to fluctuating economic conditions as well as to business demand.

At the Vietnam Business Forum 2020 (VBF 2020), held recently in Hanoi, on the theme “Challenges and opportunities in the new normal”, participants underlined the importance of a relaxation of regulations to promote rapid development associated with sustainability, to develop the global green supply chain; reform customs procedures to compete with neighboring countries; tackle regulations that hamper the expansion of investment; and to help companies turn to the sustainable economy and innovation… They also mentioned the criteria for rapid and sustainable development of infrastructures, in particular energy, public-private partnership (PPP), the treatment of waste and public transport, as well as the means for companies to access the Vietnamese capital market in a sustainable way, as well as the development of e-government and the digital economy.

Representative of the business community and foreign investors operating in Vietnam, Tetsu Funayama of the Japanese Chamber of Commerce and Industry (JCCI) said Vietnam should focus on infrastructure development in order to revive its economic growth an once the COVID-19 health crisis is over. For her part, Virginia B. Foote, President of IFC, expressed support for the renewable energy and investment environment plans initiated by the government.

Deputy Prime Minister Pham Binh Minh affirmed that the government recognizes and welcomes the role of businesses for the rapid and sustainable development of the country. In recent years, the government has made efforts to support businesses and alleviate their difficulties. The companies’ proposals at the forum will help promote innovation and creativity, improve the investment environment and national competitiveness, as well as attract more foreign capital to put Vietnam in the top group. ASEAN countries.

By respecting environmental protection standards, guaranteeing gender equality and workers’ rights, strengthening training, community development, etc., companies have carried out their social responsibility. They need to apply technological advances to release new products and strengthen links in product distribution. In order to support companies to overcome post-COVID-19 difficulties and to take advantage of integration opportunities, the government has planned four axes of assistance.

First, the government is committed to maintaining macroeconomic and political stability, applying flexible monetary policies and promoting access to funds for businesses, especially small and medium-sized enterprises. Second, the government is pursuing programs to encourage domestic consumption and gives high priority to the development of the digital economy. Third, the establishment of measures to encourage foreign direct investment as well as those of the private sector in infrastructure and in the development of a skilled workforce. Finally, the government emphasizes the strengthening of trade promotion and investment abroad through new methods such as the presentation of online opportunities.

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