These were among the problems to be overcome, according to the Head of the Party Central Committee’s Economic Commission, Vuong Dinh Hue, speaking at a recent international workshop.
It is necessary to assess Vietnam’s competitive edge in comparison with global competitiveness, and devise solutions to raise the national index, Hue added.
Also, the country should evaluate the competitive edge of local businesses, as well as their products, against a national backdrop, he added.
Hue suggested Vietnam create solutions and institutions to attract the world’s venture capital funds to support startups, especially small to medium-sized private enterprises (SMEs), explaining that apart from opportunities, the startups are expected to face many risks.
At the same time, the country should put in place specific solutions to help local firms better connect with foreign direct investment (FDI) partners and take part in the global value chain, he said.
Other delegates at the workshop emphasised the need for Vietnam to bring into full play the many opportunities afforded by the Trans-Pacific Partnership (TPP) agreement, to which the country is a member.
Administrative reforms will result in new waves of investments and startups, said Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry.
He proposed the Government create an optimal and equal institutional environment, in tandem with rolling out measures and policies in support of SMEs. Businesses themselves should then operate within the favourable environment created, he added.
World Bank Country Director to Vietnam, Victoria Kwakwa, said red tape in procedures, excessive bureaucracy and corruption were at the roots of a sluggish economy.
A transparent banking system and well-regulated financial market are necessary for institutional streamlining and infrastructure development, which can ensure economic growth, she added.
The World Bank official also suggested Vietnam develop more skillful labourers who can easily adapt to economic changes.