Vietnam boosts bold reforms to attract more investors

Prime Minister Nguyen Xuan Phuc (right) met with IFC country manager Kyle Kelhofer (left) and representatives of Vietnam Business Forum on December 10 in Hanoi

At the meeting, Prime Minister Nguyen Xuan Phuc emphasised that while the whole world is being affected by the COVID-19 pandemic, the Vietnamese economy has performed rather well compared to other countries. Vietnam is seen as one of the five countries with the strongest trade flows.

The PM affirmed that the government is steadfast in preventing epidemics, protecting the people's health, and developing the economy. Therefore, reopening commercial flights will be carefully considered.

PM Phuc affirmed that Vietnam's policies and regulatory framework will continue to be strongly reformed, creating favourable conditions for investors. However, investors must also obey the laws of Vietnam, especially doing business in a transparent manner, avoiding the phenomenon of price transfer and tax evasion.

The government also continues removing obstacles to doing business to make Vietnam soon join the top group with a competitive business environment in ASEAN.

Kyle Kelhofer, country manager of the International Financial Organization (IFC), emphasised that Vietnam's success in controlling the COVID-19 epidemic has made Vietnam a new destination for investors.

“While COVID-19 is continuing to spread across Europe and America, Vietnam’s ability to put the epidemic under control has contributed to helping Vietnam’s economy recover earlier than other countries. This is a very important advantage for Vietnam to become a new destination for high-tech manufacturing investments in Asia and the Pacific,” he said.

Believing that the upcoming 13th Party Congress will bring new momentum for bolder economic reforms, Kelhofer affirmed that the IFC will fully support this process with initiatives and advice.

The PM acknowledged the Vietnam Business Forum’s contribution to economic reforms over the past 23 years, offering many useful recommendations and initiatives to improve the business environment. The Vietnamese business community has grown in number and potentiality, contributing to high economic growth and deep international integration, he added.

"If you want the country to develop, the private sector will need to grow strongly," the PM warned.

Vietnam is aiming to become a top competitive environment in ASEAN for all investors to do business smoothly, and for this, "everything must be transparent". Therefore, the National Public Service Portal is expanding day by day to facilitate convenience and efficiency for all investors.

According to the PM, in June 2020, Vietnam established a working group on foreign investment promotion, headed by Deputy Prime Minister Pham Binh Minh to advise the government and the PM on mechanisms and policies, criteria, and standards for an internationally-competitive investment environment to welcome the new wave of FDI.