The US by Vietnam’s side to promote its aspirations

One of the relationship’s strengths is its multifaceted nature and our countries now have a strong friendship anchored in mutual respect and work closely in many areas including regional security, education, global health, food and energy security, disaster response, and more.

Adam Sitkoff, executive director American Chamber of Commerce in Hanoi

Trade is the cornerstone of the bilateral relationship, and significant changes have taken place in the development of the American business community here. Soon after the resumption of economic relations 30 years ago, a small group of Americans founded the American Chamber of Commerce (AmCham) at its first meeting at the Dragon Hotel near West Lake in early 1994.

Business started slowly back then, but has soared in recent years. It is important to remember how quickly things have changed for business in Vietnam, and the continued effort required to create an enabling environment for entrepreneurs here.

High-quality foreign investors not only help grow Vietnam’s economy, but also help grow the entire ecosystem of local companies and entrepreneurs here. This investment activity has integrated Vietnam into the global supply chain, created quality jobs, and helped the country become more productive, efficient, safe and cleaner.

I believe that the most crucial factor for a favourable investment climate is a fair, transparent, predictable, and streamlined regulatory environment that values innovation - not only to attract new investment, but also to maintain and grow the investment already here.

AmCham has been an active advocate for administrative procedure reform in Vietnam for over 15 years through our work on the Advisory Council for Administrative Procedures Reform and related efforts. While some administrative procedures have been eliminated, new laws and regulations continue to introduce new administrative procedures.

For example, foreign investors face delays in approval procedures and time-consuming administrative burdens, which hinder or stall their projects and impact Vietnam’s competitiveness. Timely approvals are needed: for site master plans and related permits, business licences, investments, real estate development, visas for foreign workers, as well as reliable and consistent use of e-government and e-approvals.

In addition, although digitalisation is promoted by the government, many administrative procedures such as reporting, registration and notification are still required to be submitted in paper or even in both paper and electronic forms.

AmCham has been an active advocate on many new laws and decrees affecting a wide range of business sectors, as well as for Vietnam’s growing role in the global economy.

We will continue to work with the government to identify and remove these bottlenecks to ensure proposed rules and regulations are consistent and synchronise with existing laws and international standards, and are not overly burdensome on businesses. This effort helps Vietnamese entrepreneurs as much as it helps the American companies I work with.

There are many opportunities for wealth creation here, and Vietnam needs to continuously evaluate what its competitive advantage is. I recommend that Vietnam prioritise labour and engineer training, sustainable practices, and the country’s ability to support a more vertical industry - particularly as companies are looking to diversify tier two and three suppliers from China.

Vietnamese and foreign investors both need to see additional progress on structural reforms in state-owned enterprises, government administration, and regulatory processes for the private sector.

I support the government’s focus on removing bottlenecks in resource mobilisation, production, and business; addressing energy development needs and accelerating the transition to clean and renewable energy; unlocking the full potential of the digital economy; ensuring access, affordability, and innovation in the health industry; promoting sustainable investment and supply chain integration; developing the financial sector including capital markets; and creating a clean environment here.

AmCham looks forward to partnering with the government to navigate these challenges and improve business conditions that strengthen the private sector, ensure sustainable economic and social development, and promote prosperity here. Progress in these areas will not only help draw in more foreign investment, but will also support Vietnamese entrepreneurs and the country’s aspirations to propel itself to the next sphere of economic competitiveness.

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