New PM tackles business barriers

April 25, 2016 | 08:00

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In his recently assumed role as government leader, Prime Minister Nguyen Xuan Phuc is already dismantling obstacles for local businesses.

Themed “Vietnamese Enterprises – The engine of economic development”, the first meeting between Prime Minister Phuc and the private sector is scheduled for April 29, just three weeks after his election.

This conference was billed as a priority at Phuc’s first working meeting with the new cabinet earlier this month, indicating the new leader’s commitment to clearing a path for the robust development of the private sector.

In a statement about the upcoming event, the government affirmed that as businesses are the engines of economic development, the government would create favourable conditions for startups and promote business expansion in terms of both quantity and quality. In addition, the conference would require authorities at all levels to come up with practical solutions to remove hurdles.

To prepare for the meeting, the prime minister asked ministries and local authorities to report the difficulties and proposals received by businesses from all sectors and regions, so that the government could begin the arduous task of formulating solutions.

Ultimately, the Ministry of Planning and Investment will be responsible for compiling the reports for submission to the Government Office.

Importantly, business leaders in the private sector have been encouraged by the prime minister to raise their voices.

The prime minister asked the Ministry of Planning and Investment and the Vietnam Chamber of Commerce and Industry (VCCI) to invite 300 private enterprises, 50 foreign-owned companies, and 20 business associations, including the American, European, Japanese, and Korean chambers of commerce, to attend the event.

The VCCI will represent domestic businesses and will recommend proposals to improve their operations. Relevant authorities from all sectors and provinces have also been instructed to respond to the businesses’ proposals.

The chairmen of the Hanoi and the Ho Chi Minh municipal people’s committees are due to sign an agreement with the VCCI, with a view to offering an optimum business climate.

In another move to tackle Vietnam’s outstanding issues, Phuc attended a meeting to promote investment and tourism in central Quang Tri province, one of the poorest localities in Vietnam.

“As business circles play a critical role in economic development, we must create favourable conditions for investors,” emphasised the prime minister, adding that the Vietnamese government aims to place the country in the top four ASEAN nations in terms of the most favourable business environment.

This target was set down in 2015 under Resolution 19/NQ-CP, which impelled all authorities to meet deadlines on the simplification of administrative procedures.

Adam Sitkoff - Executive director of AmCham Hanoi

The American business community is encouraged that the new Vietnamese prime minister is focusing on business issues so quickly after taking office. This is important, as Vietnam faces some challenging reforms and upcoming changes in many laws. As a major investor here and as the top buyer of Vietnamese goods, American companies have a great interest in Vietnam’s continued success.

At the April 29 meeting, we will tell Prime Minister Phuc that the business climate can best be helped by actions that increase productivity and reduce the costs and risks of doing business in Vietnam.

We believe that the new government can best ensure growth by maintaining macro-economic and political stability, building world-class infrastructure, intensifying its efforts to upgrade workforce skills, and improving the ease of doing business here – including addressing areas where inconsistencies, inefficiencies, and unfair practices persist.

AmCham will also encourage the prime minister to make further efforts to improve governance and transparency, change the behaviour of state-owned enterprises, strengthen intellectual property rights, and ensure that legislation enables and facilitates rather than restricts business opportunities for our members.