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Prime Minister says: Important base for economic development

(VLR) (Vietnam Logistics Review) This is a confirmation of Prime Minister Nguyen Xuan Phuc at the second meeting with enterprises in Hanoi on 17th May 2017.

(Vietnam Logistics Review) This is a confirmation of Prime Minister Nguyen Xuan Phuc at the second meeting with enterprises in Hanoi on 17th May 2017.

Making a lot of positive changes

As seen from the report of Vietnam Chamber of Commerce and Industry (VCCI), with an active participation of the government along with different ministries and local departments and agencies, an implemention of Resolution no.35/NQ-CP of the Government has reached comprehensive results that have been highly evaluated by the enterprise community and other international organizations. In particular, 75% of enterprise joined the interview answered that an impact of 5 task groups mentioned in the Resolution is “quite positive”, “positive” and “highly positive”. World Bank assessed that Vietnam was at a place of 82/190 countries, jumping 9 levels in the business environment ranking with 5 indexes growed. Based on the Jetro’s survey, Vietnam is keep being an important investment destination of Japan’s enterprises who are operating business in Vietnam, while over 66% enterprises answered that they tends to “expan their business” in Vietnam. AmCham also appraised that Vietnam was impressive with an improvement in business environment when 36% American enterprises said they had a plan to open their business in Vietnam. At the survey of EuroCham in Quarter IV 2016, many European enterprises has given a good assessment about a perspective to start their businesses in Vietnam…

In 2016, the number of new established enterprises is 110,100, reach higher level when the capital flow into the market increased 48.1% over the same period whereas the number of re-established enterprise also boosted 24.1%. In the first 4 months of 2017, there were 39,580 enterprises new established with total registered budget of 369,635 billion VND. Therefore, estimated until 20th Apr 2017, Vietnam had about 612,000 enterprises running.

In 2016, the whole country had 2,613 projects which were newly certified the investment licences (IL) with total registered budget of USD $15.81 billion, increasing 23.3% over the same period in 2015; 1,249 projects were registered for an adjustment of investment budget which was expanded to USD &6.56 billion, increasing 36.1%. In particular, there were 5,970 enterprises and FDI economic organizations with total capital of USD $4.51 billion.

Only in the first 4 months of 2017, Vietnam has 734 new projects which were certified ILs with total registered capital of USD $4.88 billion, accounting for 96% of the total over the same period in 2016; 345 registered projects requested to increase their total budget up to USD $4.36 billion, hiking 241.8% over the same period in 2016 and 1687 stock buyings and share-holdings from national investors with a total value of USD $1.35 billion, increasing 106.8% over the same period in 2016. In general, in the first 4 months of 2017, a total of the new registered budget and increasing adjustment budget and joint stock budget was USD $10.95 billion, 40.5% higher over the same period in 2016.

According to current assessment, total social investment capital in 2016 was estimated about 1,485 trillion VND, increasing 8.7% over the same period in 2015 and accounting for 33% of GDP. Private sector contributed about 49% of total social investment budget. Also based on the current evaluation, labor productivity of the whole national econonomic in 2016 was estimated about 84.5 million VND/labor (approximately USD $3,853/ labor). If based on the measurement price in 2010, the labor productivity of the whole economic in 2016 was estimated to increase 5.31% compared to that in 2015.

“These above data illustrated the confidence of domestic and international enterprises on the business environment of Vietnam that has been significantly improved”, said Mr Vu Tien Loc, VCCI’s president.

Continue full supporting to create a breakthrough

Speech at the Meeting, Prime Minister Nguyen Xuan Phuc affirmed that the result achieved in creating a fair, friendly and encouraging business environment for investment promotion and promising to implement national regulations as well as improve administrative procedures are still humble and just the first results. We have a lot of work to do in the near future because there are numerous obstructions of enterprises’s development in Vietnam.

For instance, many legal documents and circular instructing legal implementation are still overlapped and there are some conficts among Laws, Resolutions in the field of land, investment, contruction or environment etc. that caused many difficulties and prolonged the processing of enterprises’ petitions. Leader’s awareness is not full and the promotion programs for an implementation of these Resolutions are still weak and not well organized.

Organizing the dialogue with enterprises still focuses on the form but not the contents, some recommendations of enterprises are just recorded but not solve completely or properly. In addition, the examination and inspection in some ministries and local agencies are inadequate and overlapped. The cooperation among different ministries and agencies as well as between the Central and localilities is not good.

Refers to business activities, the capacity to approach the market and import-export of domestic enterprises is still limitied. Only a few enterprises can join the regional and global supply chain. Government management on goods quality is very weak, not effectively controlling fake and low quality goods or technical control measurements are not effective… These lead to an unfair competition status, block the domestic production and negatively impact on society.

I believed that all of you already saw our efforts in building a government of action, always accompanying with enterprises and creating the best favorable conditions for enterprises to improve the competitive capacity, equal development and wealth

Prime Minister Nguyen Xuan Phuc

To achieve all the targets of the Resolution, representatives from Ministry of Plannings and Investment and VCCI confirmed that it still needs to strongly enhance an implementation of solutions suggested in the near future. Besides, the government will add some other important solutions, for example ministries and agencies have to strengthern administrative reform, review and revise investment and business conditions at all economic sectors to avoid an overlap between legal documents, improve investment environment; expand trade and investment opportunities for enterprises to approach land, market and financial credit; then reduce business costs for enterpeise; protect legal rights and responsibilities of enterprises, especially complete an implementation of the Resolution no.35.

Having the same oppinion, Minister Mai Tien Dung affirmed that along with building the law and policy systems, the implementation of all Central’s Resolutions 5 session XII about the policies of socialism – oriented market economic for government enterprises and develop private enterprises. Government also focuses on directing ministries and related agencies to improve an implementation of laws and policies, promote the administrative reform, strengthern effectively the process of reponses to the oppinions and suggestions of enterprises and citizens; speed up the construction of government portal, improve monitor and supervision for task implementation that were delegated by Government and Prime Minister; also lift up the promotion programs to improve public awareness of people and enterprises about mechanism, policies and national laws in supporting and developing enterprises; timely release news on great models, good practices as well as faults when implementing national laws and policies.

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