Vietnam tries to create favorable business environment

Since the beginning of this year, Vietnam has had more than 10,000 new enterprises with a total registered capital of nearly US$3.7 billion. The number of businesses resuming operations in October was also nearly 2,000.

The figure reflects the Government's persistent effort to improve the business climate. According to the World Bank’s annual Doing Business report released late last month, this year Vietnam ranks 82 out of 190 economies globally, up 9 notches since last year. The report measures the ease of doing business in each of 190 economies. 

In a recent report, the Hongkong and Shanghai Banking Corporation (HSBC), said Vietnam is capable of holding a leading position in Asia in terms of GDP growth thanks to its manufacturing and exports. A report on Southeast Asia’s production by Japan's Nikkei news agency showed business conditions in Vietnam’s manufacturing sector continuing to improve.  Moody's credit rating for Vietnam is B1, with a stable outlook.  

Mac Quoc Anh, Vice President of the Hanoi Small and Medium Enterprises Association, said that last year’s revised law adjusting legal documents on investment and business has removed a series of barriers to the market economy and Vietnam’s integration commitments, creating a more transparent and fair environment for businesses and investors.

Quoc Anh said “The Hanoi Business Association and related government agencies regularly organize forums or meetings with enterprises. Questionnaires have also been sent to businesses to determine their administrative procedure difficulties relating to land, customs, or taxation."

In late April, the government issued a resolution, setting key tasks and solutions to improve the business environment to enhance national competitiveness with a vision until 2020.

Deputy Prime Minister Vuong Dinh Hue has asked local authorities to focus on supporting SMEs and start-up movements to attract more foreign direct investment.

"Early this year, the government issued a decision on the national start-up ecosystem and is preparing to submit to the National Assembly amendments to many existing laws relating to the investment and business climate to remove obstacles for businesses," said Mr. Hue.

At a recent meeting, the Vietnamese government focused on institution building, especially the issuance of documents specifying how to apply revisions to the Law on Enterprises and the Investment Law.