17:43 | 14/08/2015 Investment
Recently, the Vinh Phuc Investment Promotion Agency attended the training course of "Implementation of Resolution 19: Improving local business environment", organised by the People's Committee of Hanoi in collaboration with the Central Institute for Economic Management (CIEM), the Ministry of Planning and Investment and US Agency for International Development in Hanoi.
Criterion not yet to be met
At the training session, Nguyen Dinh Cung, CIEM Director and Ms Laura McKechnie, Deputy Office Director and Economic Governance Officer, Economic Growth Office at USAID, introduced the main contents of Resolution 19/ NQ-CP dated 18/03/2014 as well as the tasks and solutions to improve the business environment locally based on business Indicators of the World Bank (World Bank) covering 11 evaluation criterion: start-up, trading across borders, energy access, licensing, registration of property rights, payment of taxes, social insurance, contract dispute settlement, corporate bankruptcy, cross-border trading, and labour laws.
Accordingly, it takes businesses 34 days to start up a business and 14 days for licensing in Vietnam, while only 28 days and 6 days in Thailand, 6 days and 6 days in Malaysia, and 3 days and 1 day in Singapore, respectively. Besides, it takes businesses 872 hours to pay taxes and social insurance in Vietnam, while only 171 hours in ASEAN-6, 82 hours in Singapore and 133 hours in Malaysia. It also takes businesses 21 days for cargo clearance for exports and imports, while only 13 days in Thailand and 6 days in Singapore. Time to access electricity in Vietnam is 115 days, 42 days in the Philippines, 35 days in Thailand, 32 days in Malaysia and 31 days in Singapore.
Generally in the first seven months of 2015, the total of newly registered capital and additional capital is US$8.8 billion, or 92.4 percent over the same period in 2014. The figure shows that attracting FDI is facing many difficulties. If Vietnam does not enhance competitiveness soon, the country will lag behind other countries in the ASEAN region and other areas.
Efforts to improve competitiveness index
In recent years, Vinh Phuc has been aggressively implementing many measures to improve the business and investment environment, and enhance national competitiveness, so the provincial competitiveness index has improved and ranked 26th in 2013 and 6th in 2014. In the first half of 2015, Vinh Phuc attracted 15 newly registered FDI projects, with a total investment of US$163.4 million, and 12 FDI projects have total investment increased by US$52.75 million. Domestic direct investment (DDI) has 31 projects with total registered capital if VND7,332.1 billion and one DDI project has increased its capital by VND145 billion.
According to Vinh Phuc Investment Promotion Agency, raising awareness and responsibility of improving business and investment environment, building competitiveness as well as supporting businesses and investors during their business operation are important; it is necessary to create partnership among government agencies to propose solutions to improve the business environment./.