The Ministry of Planning and Investment collaborated with the International Financial Corp (IFC) and the World Bank (WB) on June 1, 2009 to hold the 24th Vietnam Business Forum (VBF) at Sheraton Saigon Hotel. VBF is a dialogue channel between the Government and the business community in Vietnam and in the world and international donors to improve business environment in Vietnam.
At the forum, representatives from industry associations in Vietnam and in the world shared positive remarks on Vietnamese business climate, hailed the Vietnamese Government’s macroeconomic policies and governance to ride out serious impacts of the global economic crisis. Especially, the three solution packages to boost production and business stimulate investment and consumption and flexibly manage monetary policies created strong foundations to support Vietnamese enterprises to overcome difficulties and grow to higher positions. Business associations also proposed the Vietnamese Government, ministries and branches to introduce more concrete and transparent policies, especially administrative reform, to facilitate business communities to access policies of the Government, operate more effectively and bring prosperity for the nation.
Notably, according to remarks by Mr Alain Cany, chairman of European Chamber of Commerce in Vietnam (EuroCham), and Mr Thomas Siebert, chairman of American Chamber of Commerce in Vietnam (AmCham), the infrastructure systems of Vietnam are seriously insufficient, especially in electricity, seaport and ground works connecting with ports. These weaknesses seriously threat the inflows of FDI capital into Vietnam at present as well as in the future. This requires the Vietnamese Government to make greater efforts to polish its image in the eyes of international investors.
According to business associations, working skills and levels of Vietnamese human resources need to be higher to build the nation. Mr Brian O’Reilley, an official from the Australian Chamber of Commerce in Vietnam (Auscham), urged the Vietnamese government to have sound adjustments and positive effects on education to improve the educational system, heighten human resource quality to meet the demand of a dynamic and modern economy of Vietnam. AusCham always supports the Vietnamese Government to develop the educational system in particular and the country in general.
During the dialogues with the Vietnamese Government on financial and banking field, World Bank’s Country Director in Vietnam, Victoria Kwakwa, said Vietnam needed to closely track its macroeconomic data to adjust its policies timely and streamline administrative procedures to reduce costs and time for investors. Mr Vu Duy Thai, chairman of Hanoi Industry and Trade Association, said it was necessary to have “special remedy” to shore up the economy. The Government as well as banks must be decisive factors to the effectiveness of business support measures and to the recovery of the economy.
In addition to suggestions and proposals of enterprises on infrastructure, human resource development, administrative reform and banking reinforcement, there were a number of reports on investment, capital flows, production, distribution, tourism, mining and seaport.
At his closing address, Planning and Investment Minister Vo Hong Phuc admitted that Vietnam was now “stuck” amongst difficulties in working levels, skills, human resources and infrastructure. To overcome these weaknesses, Vietnam was striving to reshuffle its education and training and call foreign investors to construct infrastructure in Vietnam, he said.
Vietnam Business Forum would like to introduce voices of participants:
Alain Cany, Chairman of EuroCham
The European Chamber of Commerce in Vietnam supported the Vietnamese Government to continue effectively responding to trade deficit, inflation and foreign exchange. To keep trade deficit at acceptable level, Vietnamese enterprises need to receive supports they need to maintain competitiveness in an environment where the world demand for consumer products is falling down. Exporters and especially medium-sized companies need to have continued access to rational credit sources at reasonable costs and we support the State Bank of Vietnam to implement a plan to ensure the objective to this effect.
Eurocham, hailed the stimulus package of Vietnam as one of its efforts to mitigate impacts of the global economic crisis and balance potential stagnation in disbursing foreign direct investment (FDI) in the event of falling cash payment capacities. We spoke high of the US$8 billion stimulus package of Vietnam.
Mr Thomas Siebert, chairman of American Chamber of Commerce in Ho Chi Minh City (AmCham)
In the past 10 years, delegates at Vietnamese business forums usually focused on domestic markets and main contents of dialogues are usually involved in domestic business environment and regulations in Vietnam. Today, we proposed the government and foreign business associations as well as domestic associations led by VCCI to look outwards and to consider methods to bring the role of Vietnam into a business and logistics centre not only in Greater Mekong Sub-region (GMS) but also in ASEAN. To realise this goal, Vietnam will concentrate on boosting FDI not only into export-oriented industry but also new and dynamic sectors, including services.
According to WTO entry commitments of Vietnam, service sectors will be gradually opened to foreign investors. We recommend the Vietnamese Government and Vietnamese enterprises that Vietnam consider opening up its doors to investors in key infrastructure areas and public sectors such as telecommunications, electricity, energy, transport and education and training. We will continue cooperate with other business associations and government agencies at central and local levels to better investment environment, promote trade and investment - the factors, we believe, are important foundations for socioeconomic development.
Mr Vu Duy Thai, Chairman of Hanoi Industry and Trade Association
At present, Vietnamese enterprises generally tend to protect themselves from market changes. A majority do not expect financial supports from the government but hopes the supports for market and foreign exchange. I hope policymakers to pay more attention to this aspect to support domestic businesses.
Mr Huynh Van Minh, Chairman of Ho Chi Minh City Business Association
As a voluntary association, the Ho Chi Minh City Business Association always seeks opportunities and solutions to help Vietnamese enterprises to overcome difficulties, grasp opportunities and obtain higher positions in both domestic and international markets. We proposed further administrative procedures to support business development. Besides, to increase the effectiveness of major Government policies and volume up the voice of business communities, we hope to attend forums and conferences where there are arguments and proposals for the sake of business and national benefits. Finally, we expect the Government will have active, timely and transparent supports for business communities in information and human resource training.
Ms Nguyen My Thuan, General Secretary of Can Tho Business Association
The government’s stimulus packages have positively impacted the sentiment of Vietnamese businesses. However, there are certain barriers in approaching the assistance, especially in lending procedures. With current regulations, small businesses continued to be kept away from support policies of the Government.
Besides, the Government, ministries and branches have issued many legal regulations and policies but many enterprises are still unaware of them. Thus, we propose the official publication on the official websites of the Government, ministries and branches for enterprises to look up.