VBF 2018: Sharing opportunities in the world of changing trade

The government aims to strengthen co-operation with businesses. Source: chinhphu.vn

At the opening of VBF 2018, Minister of Planning and Investment Nguyen Chi Dung talked about positive changes in the economy, which came from the dialogue between the government and businesses.

These include a more stable economy, inflation kept under 4 per cent, annual GDP growth of around 6.7 per cent, 130,000 newly-established companies, around a total of VND1.89 quadrillion ($82.2 billion) investment into society, the disbursement of $18 billion FDI capital, and an export turnover of nearly $240 billion.

"These achievements have seen ample contribution by the business community as well as domestic and foreign investors," confirmed Minister Dung.

However, there are many difficulties to face, he added, naming big inflationary pressure, the poor quality of growth, low productivity, weak competitiveness, low resilience to external shocks, vulnerability to climate change, the risk of falling behind the region and the globe, as well as the middle income trap.

"In order to overcome these obstacles, the Vietnamese government is determined to create a more inclusive economy, accelerate economic growth via breakthroughs and innovation, as well as improve the quality of growth, productivity, and competitiveness. The capital, securities, insurance, and real estate markets will also be developed synchronously," Minister Dung told the business community at the VBF 2018.

"The government continued conducting administrative reform, judicial reform, streamlining the state apparatus and organisation, as well as improving the business climate, facilitating the most favourable conditions for businesses," confirmed the minister.

Minister Dung affirmed the efforts of the government, however, a one-sided effort is not enough. "We need the business community to proactively take part in the crafting of policies on socioeconomic development and investment-business," he told the representatives of business associations at the forum.

In order to gain more achievements in the upcoming time, Prime Minister Nguyen Xuan Phuc asked for greater efforts and more co-operation from Vietnamese businesses, foreign businesses, and authorities to actively seize opportunities and enhance continuous innovation for more success in the future.

He expected to receive further co-operation and opportunities sharing from foreign-invested businesses, adding that the Vietnamese government hopes that international corporations and foreign-invested businesses would be more confident in Vietnamese enterprises’ capacity to involve them in their supply chains.

The PM highlighted the government’s role in directing innovation and co-operation, asserting that they are determined to maintain political, social, and macroeconomic sustainability.

The government commits to enhancing strong structural reforms, improving the quality of institutions and state management capacity (both central and local levels), as well as making efforts in clearing bottlenecks for faster and more sustainable development, he confirmed.

The government continues improving the quality of the business environment and national competition over the last three years, which has been manifested in Resolution No.19-2018/NQ-CP reaffirming the continued implementation of major tasks and measures to improve the business environment and enhance national competitiveness and Resolution No.139/NQ-CP guiding the cost reduction action programme for enterprises.

Vietnam is now a major production hub in the world and a destination for transnational corporations providing products and services in the region and the world such as Samsung, Intel, Canon, Fujitsu, Toyota, Honda, Nike, and Vinacapital.

Vietnam now has around 20 export items worth more than $1 billion, adding that the country has inked and negotiated 16 free trade agreements which have paved the way for its partnership with more than 60 economies. These agreements create opportunities to further connect and integrate into the global value chain and production network.

As the Fourth Industrial Revolution, digital economy, and technological advances are becoming the main development engines in the century, cultural values and national identity are sources of spiritual power and support economic prosperity.

Thus, the government will give priority to investment in science-technology, enhancement of research and development capacity, and infrastructure, especially smart infrastructure and digital infrastructure to take advantages of opportunities brought by the Fourth Industrial Revolution.

PM Phuc encouraged the VBF to stay a crucial and effective policy dialogue channel between the government and the business community and forward businesses’ proposals and recommendations to the government.