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Vietnam business environment aims to improve

Vietnam business environment aims to improve

Tuesday 27, 07 2021
The improvement of Vietnam's business environment slowed down since the COVID-19 pandemic struck. However, the country still strives to create a better business environment.

Vietnam business environment resolves to improve

Vietnam aims to be ranked among the top 30 countries in terms of the business environment. To help reach this goal, the government proposes specific solutions such as renewing the method of monitoring and periodically evaluating the results of administrative reform tasks; regularly measure the satisfaction of people and organizations.

In the context of the ongoing pandemic, creating a healthy business environment is extremely important to ensure economic recovery and restore investor confidence. The quality of the business environment is also important for foreign investment and the connection of domestic firms to global supply chains.

On July 15, the Government issued a resolution approving the Master Programme on State Administration Reform for the 2021-2030 period, focusing on six contents including institutional reform, administrative procedure reform, organizational reform of the State administrative apparatus, civil service reform, public finance reform, and development of e-Government and digital government.

Vietnam business environment resolves to improve

The resolution sets a target that by 2030, 100% of administrative procedures with financial obligations will be implemented online; at least 90% of administrative procedures of ministries, branches, and localities are eligible and provided online at levels 3 and 4. At the same time, the integration will be completed and provided on the national public service portal; the rate of online processing applications at levels 3 and 4 out of the total number of applications is at least 80%.

Vietnam also commits to creating a favorable business environment for foreign companies to develop. That was a statement by the President of Vietnam, Mr. Nguyen Xuan Phuc, in a meeting with the Chairman of the Association of Koreans in Vietnam and several Korean enterprises in Vietnam recently.

 

Difficulties remain

The progress of improving the business environment in Vietnam will still see difficulties in the next five years.

According to a new report published by the Vietnam Chamber of Commerce and Industry (VCCI), the business investment environment has improved significantly over the past time. Competitiveness has been enhanced and has become the focus of government activities in the past five years.

It was reported that the review and reduction of business procedures have been strongly implemented. Specifically, in 2016 there was the first revolution, abolishing, transforming thousands of business conditions or in other words, removing "sub-licenses". In 2018, there was a reduction and simplification of business procedures, administrative procedures, and a specialized inspection.

According to reports of ministries, there are 50% - 60% of procedures to be cut. At the beginning of 2020, there is a Resolution requiring a 20% reduction in business-related regulations. According to economic experts, measures to improve the business environment and support businesses will continue to be deployed, bringing many advantages to the business community.

Difficulties remain

Andrew Barnes - Australian Deputy Ambassador to Vietnam - also said that despite the challenges of Covid-19 last year, the performance of the Vietnamese private sector over the past five years has been impressive.

“Vietnam’s small and medium enterprises continue to be a powerful source of economic growth and the contribution of the Vietnamese private sector to the economy is also much larger than in developing countries,” he said.

“Good public policy is also an important contributor to improving Vietnam's business environment. For example, the Enterprise Law 2020 and the Law on Supporting Small and Medium Enterprises of 2017 have helped the private sector promote its contribution to the prosperity of the Vietnamese economy,” said Deputy Ambassador Andrew Barnes.

Despite the improvements, according to VCCI Chairman Vu Tien Loc, Vietnam's business environment still has many limitations. Administrative procedures and business investment conditions have become more transparent, but it has become more difficult to make public plannings, plans, and reports of the State for businesses to access. In particular, more and more businesses reflect that the information published is very general, which companies cannot use.

The VCCI Chairman noted that Vietnam has reduced the conditions for market entry in many fields and industries, creating very good conditions for small and medium enterprises to enter the market. However, in many fields that require large investment and long capital recovery, the risk situation due to policy fluctuations is still a concern, preventing many large enterprises from investing money.

 

Compiled by VietnamCredit

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