Vietnam moves to improve business environment

75 per cent of the businesses have plans to expand their business in the next three years, according to the Vietnam Business Forum 2010’s secretariat.

The Vietnam Business Forum 2010 met on December 2 in Hanoi to discuss challenges that the country is facing and proposed solutions for more efficient business and investment environment. However, participants were concerned with protection intellectual rights, counterfeit goods, lacking of skill workers and shortcoming of infrastructure.

Administration procedure reform and simplification are considered to have highest level of improvement over the last year.

Speaking at the forum, the International Finance Corporation (IFC)’s Regional Director Simon Andrew said companies are facing pressure of lacking skill laborers.

According to the Ministry of Labor, Invalid and Social Welfare, over 65 per cent of Vietnamese labourers do not have professional knowledge.

Chairman of the American Chamber of Commerce in Vietnam (AmCham) Hank Tomlinson said Vietnam needed to improve professional knowledge and skill for laborers, aiming to enhance economy’s competition.

According to World Bank’s 2011 business environment report, Vietnam ranks the 78th among183 economic worldwide, up ten places from last year’s ranking.

Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany applauded Vietnam’s improvements in reforming administrative procedures and legal frameworks regarding Public-Private Partnership projects, saying these are a major factor that will help Vietnam catch up with expanding requirements in terms of infrastructure and energy.

Both Chairman of AmCham Hank Tomlinson and Vice Chairman of the Australian Chamber of Commerce in Vietnam (AusCham) suggested the Vietnamese government take stronger measures to stabilise the macro-economy and remove bottlenecks in infrastructure and human resources in order to create a more open investment environment.

The Vietnam Business Forum is an important event that takes place on the threshold of the Consultative Group (CG) meeting of donors for Vietnam. It is seen as a dialogue channel between the government and the business community in the country