The reopening of borders, liquidity, and the ability for banks to support economic growth, as well as the maintenance of policy reforms and the streamlining of administrative processes, are proposals of BritCham to boost Vietnam’s recovery of the economy.
|At VBF, BritCham proposed several solutions to boost Vietnam’s economic recovery |
At the Vietnam Business Forum (VBF) on February 21 in Hanoi, board member of the British Chamber Of Commerce Vietnam (BritCham) Nitin Kapoor congratulated the government’s economic growth.
According to BritCham, to speed up the economic recovery, a key element will be the reopening of borders alongside a set of national entry rules and regulations to allow safe resumption of visitors for both business and tourism.
“BritCham believes limiting and removing quarantine requirements will support not only international but local operators within the tourism and business sectors. As the global economy rebounds, inflation will be a key area to be addressed,” Kapoor said.
BritCham also believes that liquidity and the ability for banks to support economic growth will be vital for 2022 and the medium-term future. Companies will start capital expenditures into their businesses given that many have preserved cash for the past two years.
Associated with this is the strategic importance of exporters for continued GDP growth.
The chamber also believes in a more flexible regulation from the State Bank of Vietnam, allowing banks to be able to support companies with a larger lending cap than they have given in the past.
“The potential rate of growth will only be truly realised if businesses are able to execute their plans and are not stifled by limited liquidity caused by inflexible lending amounts and terms. BritCham believes that this is the beginning of the journey and is very keen to work with the government on the policies and regulations to help achieve these,” Kapoor said.
According to BritCham, the sustainable economic ambitions of Vietnam and its people also highlight the importance of skills and language developments, and the pandemic has shown a great demand for international levels of education at all age groups to ensure that domestic talents can contribute to achieving the country's goals.
“Vietnam must also maintain its focus on policy reform and the streamlining of administrative processes. We must also expect and accept that the recovery will not necessarily be totally smooth, making policy and regulations even more important,” Kapoor said.