Business leaders offer government economic recovery recommendations

Vietnam has achieved important improvements in its business and investment environment

Greater business confidence

The high-level session of the annual VBF 2022 was organized by the Ministry of Planning and Investment in collaboration with the World Bank and the International Finance Corporation and attended by Prime Minister Pham Minh Chinh. It brought together the heads of foreign chambers of commerce with top government officials for an ongoing dialogue.

Minister of Planning and Investment Nguyen Chi Dung said that although the Vietnamese economy faced many difficulties and challenges in 2021, its business and investment environment continued to improve. Last year, the number of newly-established enterprises and those re-entering the market reached nearly 160,000, while total realized social investment capital reached an estimated VND2,890 trillion. Despite the prolonged pandemic, foreign investors registered to invest more than US$31 billion in Vietnam in 2021, an increase of 9.2 percent compared to the previous year.

Alain Cany, chairman of the European Chamber of Commerce in Vietnam (EuroCham), said more than 1,200 EuroCham members are more confident about the prospects of their own enterprises in the post-pandemic new normal, as reflected by the Business Climate Index (BCI) increase to 61 points in January 2022. In particular, once the EU-Vietnam Investment Protection Agreement (EVIPA) enters into force, it will have many positive impacts on Vietnam’s business and investment environment.

According to the Korea Chamber of Commerce in Vietnam, Vietnam yielded important achievements in improving its business and investment environment and regained growth momentum in 2021. The Vietnamese government has been providing support for enterprises to do business in Vietnam, creating a premise for higher economic growth.

Recommendations for Vietnam

Despite positive improvements in the business and investment environment, the Vietnamese economy still faces many challenges due to the complicated developments of the Covid-19 pandemic and the impact of climate change.

Carolyn Turk, World Bank Country Director for Vietnam, said Vietnam has set ambitious targets and made impressive commitments in order to become a high-income economy by 2045 and reach net-zero carbon emissions by 2050.

Amy N. Luinstra, acting country manager of the International Finance Corporation, said Vietnam needs to make further efforts to improve its business and investment environment in order to attract high-quality foreign investment, while strengthening linkages between FDI companies and domestic businesses to participate more deeply in the global supply chain.

Tran Thi Lan Anh, secretary-general of the Vietnam Chamber of Commerce and Industry (VCCI), made recommendations towards economic recovery. Priorities are being given to creating favorable conditions for businesses to access information on support policies, providing support for businesses in accessing capital to restore trade and production activities, easing entry of experts into the country, improving efficiency of support programs for employees who have lost their jobs due to the impact of the Covid-19 pandemic, promoting the application of information technology in management, enhancing the enforcement efficiency of the government apparatus, and making better use of free trade agreements.