This year, the government adopted new incentives, simplified administrative procedures relating to credit, tax, land, construction, and imports-exports, and reduced business conditions.
A wide range of meetings and forums between the government and entrepreneurs were held, while innovations and start-ups were encouraged.
Important decisions for the development of the private economy were made, including the Law on Supporting Small and Medium-sized Enterprises and dozens of decrees on slashing business conditions. 80% of the total 1,100 proposals from the business community were dealt with.
All this resulted in more than 120,000 new enterprises, the most in the 17 years since the Law on Enterprises was adopted. More than 25,000 enterprises resumed operation and US$17.5 billion Foreign Direct Investment was disbursed, a 10-year high.
|Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (Photo: Pham Huyen/Vietnamnet.vn
Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said, “At the beginning of its term, the government concentrated on reforming institutions. The Prime Minister directed ministries and sectors to finalize a decree to instruct the implementation of the Law on Investment and the Law on Enterprises. He was eager to address enterprises’ demands and recommendations.”
The government’s efforts to improve the business environment have been applauded by international organizations. A World Bank report said Vietnam moved up 14 places in business climate this year, compared to last year. The World Economic Forum raised Vietnam’s competitiveness 20 notches in 2017.
|Robert Moritz, Chairman of the PricewaterhouseCoopers International Network
Robert Moritz, Chairman of the PricewaterhouseCoopers International Network, said, “Vietnam has a number of years of positive growth and stable investment opportunities. And as a result, many see that an investment opportunity for them. In fact, our PwC CEO survey puts Vietnam in the top 5 countries that CEOs want to invest in outside of their own country. So I think that demonstrates the prominence importance of Vietnam and that will continue as the demographics and economy continue to grow.”
Engagement of ministries, localities
This year, the Ministry of Finance reformed the tax and customs systems and the Ministry of Industry and Trade proposed to trim 675 business and investment conditions, a record high number in the sector’s history.
Hanoi launched an online public service portal, while Quang Ninh province took the lead in implementing competitive indexes at district level. Da Nang city did well in building an innovative start-up network and improving administrative services.
Dr. Nguyen Dinh Cung, head of the Central Institute for Economic Management, said, “This year saw significant results for the government’s drive to improve the business climate. Business obstacles like poor business conditions, specialized management, irrational decisions, and high business costs were reduced. The central government, ministries, and localities have flexed muscles. Many initiatives were put in place, including a public administrative center and entrepreneur café.”
As Prime Minister Nguyen Xuan Phuc said, a country cannot be rich without a strong business community. The government will go ahead with more measures to nurture businesses for sustainable growth.