VOV.VN - Despite undergoing a number of administrative procedures to ensure that investment conditions become more transparent, Vietnam is facing several significant challenges regarding business climate improvements in the future, according to insiders.
The Vietnam Chamber of Commerce and Industry (VCCI) recently released a report, outlining how the domestic business environment has significantly improved in recent times and how the country’s competitive capacity has also been enhanced over the past five years.
Most notably, up to 60% of administrative procedures have been simplified, thereby creating favourable conditions in which the local business community can benefit from.
Australian Deputy Ambassador to Vietnam Andrew Barnes noted that the Vietnamese private sector has witnessed an impressive performance over the past five years, especially last year despite the negative impact caused by COVID-19 outbreaks.
The Australian diplomat added that domestic small and medium-sized enterprises (SMEs) continue to represent the driving force behind national economic growth, with the private sector making greater contributions to the economy in comparison to other developing countries.
He therefore emphasised that a competent public policy has become a key factor in boosting the local business environment.
A prime example for this can be seen in both the 2020 Enterprise Law and the 2017 Law on Support for Small- and Medium-Sized Enterprises which have helped the private sector significantly contribute to the country’s sound economic performance, said the Australian diplomat.
Vu Tien Loc, chairman of the VCCI, analysed that the Vietnamese business environment has revealed a number of inadequacies though administrative procedures and investment conditions became increasingly transparent.
Local firms have encountered issues in gaining access to the State’s plans and reports, which typically provide them with general information, elaborated Loc, noting that there remains inequality among private enterprises, state-owned enterprises, and foreign-invested enterprises.
The VCCI leader went on to reveal that Vietnam has cut down on a number of conditions relating to market entry across several industries, which are expected to create the optimal conditions possible for SMEs to enter the market.
However, in several fields that require large investment and prolonged capital recovery, the risk of policy changes remains worrying and will hinder many large enterprises in their investments, he stressed.