Investment environment draws praise

12:14 | 26/01/2017 Economy

(VEN) - Vietnam so far has attracted more than 22,000 foreign direct investment (FDI) projects with total registered capital of nearly US$300 billion. At the Vietnam Business Forum 2016, international organizations and business associations hailed the achievement and the government’s efforts to improve the business environment.

investment environment draws praise

Virgina B. Foote, Governor of the US Chamber of Commerce in Vietnam (AmCham):

We hope Vietnam will continue building a healthy business environment. Businesses and investors in Vietnam are enjoying stability and growth that make other countries in the region envious. Stable economic growth, inflation under control, and effective monetary management are Vietnam’s competitive advantages.

Administrative burden and corruption remain problems that adversely affect the investment environment in Vietnam. AmCham hopes Vietnam will continue building a safe, healthy business environment, creating opportunities for the private sector to develop.

Ryu Hang Ha, President of the Korea International Trade Association:

Impressed by PM’s investment promotion tours to various areas. In 2016, Vietnam maintained macroeconomic stability despite big changes, including the election of the new cabinet. Indexes of socioeconomic development showed the stable growth of the Vietnamese economy.

The new government has shown strong determination to improve the investment environment and create favorable conditions for all business sectors to develop.

I was very impressed by Prime Minister Nguyen Xuan Phuc’s investment promotion tours to various areas, which showed his high appreciation for the role of businesses investing in localities - this makes foreign investors feel secure about their operations in Vietnam.

Tomaso Andreatta, Vice Chairman of the European Chamber of Commerce in Vietnam:

Vietnam needs to develop a green economy. I highly appreciate the Vietnamese government’s efforts to improve the business and investment environment in the recent period. However, environmental pollution remains a big problem in Vietnam. To attract quality investment projects, Vietnam needs to develop a green and clean economy. To develop a green economy, Vietnam should promote energy efficiency and use clean material resources, while at the same time building smart cities with adequate infrastructure.

Kenneth M. Atkinson, Chairman of the British Business Group in Vietnam:

Further efforts needed to improve the business environment. Over the past 26 years living and working in Vietnam, I have seen the country’s great progress. To fully awaken its great potential, however, Vietnam needs to create a more transparent and favorable business environment.

To improve the business climate, first of all Vietnam should further simplify tax declaration and inspection procedures. In fact, these procedures remain time-consuming despite several improvements. In many cases, tax inspections were carried out a long time after fiscal years ended. The gap in tax regulations between different localities is another reason making businesses subject to heavy fines.

In some cases, due to the mistakes of tax officials, businesses are required to pay taxes which they have already paid. Moreover, businesses often encounter difficulties when finalizing taxes due to the absence of relevant tax officials. Therefore, we want tax inspections to be carried out annually. Tax offices should assign specific officials to follow up on tax finalization for businesses to prevent the collection of taxes which have already been paid.

Sebastien Eckardt, Chief Economist at the World Bank:

It is necessary to increase the linkage between FDI and domestic businesses. Vietnam is a large and very good market for investors. In 2016, the Vietnamese government put in place sound policy adjustments in an effort to create a healthy investment environment and promote sustainable development of economic zones. Vietnam has also applied appropriate policies to attract FDI and properly use these capital resources. To ensure effective use of FDI and increase the FDI sector’s contributions to the Vietnamese economy, Vietnam needs to pay greater attention to tightening the linkage between FDI and domestic businesses. This linkage will facilitate Vietnam’s access to FDI.

Taiji Yanai, Chairman of the Japan Business Association in Vietnam:

A comprehensive trade policy is necessary. To achieve sustainable economic growth and encourage foreign businesses to invest in Vietnam, the country needs to concentrate on dealing with four groups of issues related to labor, the automobile and motorcycle industry, agriculture, and electricity. In addition, Vietnam should be committed to maintaining a comprehensive trade policy, including participation in the Trans-Pacific Partnership. Active participation in the global market will create clear competitive advantages for Vietnam as the country is deepening its integration into the global economy.

Nguyen Hoa