In his opening speech at a business forum in HCM City on June 1, Minister of Planning and Investment Vo Hong Phuc called on the business community and donors to frankly exchange views on challenges facing Vietnam and also proposed feasible solutions to help Vietnam develop a complete business and investment environment.

According to Huynh Van Minh, president of the HCM City Business Association, the Vietnamese government has introduced urgent solutions, including boosting production and business, stimulating investment and consumption, and drawing up flexible financial and monetary policies, to minimise the negative impact of the global economic crisis. He said the government, ministries and local administrations have provided immediate support for the agro-forestry and fisheries sector and those employing many workers and sought new outlets for their products.     

The government has planned to issue additional bonds to mobilise capital for key construction projects, sped up the disbursement of foreign direct investment (FDI) and official development assistance (ODA) capital, generated more jobs and exempted or slashed taxes on businesses and the people.

It has also restructured the goods distribution network, encouraged the expansion of credits for businesses and adjusted interest rates to support businesses. However, Mr Minh suggested that the State accelerate administrative reform and provide fast, reliable and transparent information to the business community.

Alain Cany, president of the European Chamber of Commerce in Vietnam (EuroCham) acknowledged Vietnam’s efforts to amend the Personal Income Tax in favour of foreigners working in Vietnam. He said that the move will help attract more skilled foreigners to come and work in the country. He affirmed that EuroCham is ready to assist the Vietnamese government in finalising the business environment and abolishing the remaining barriers in the process of WTO admission.

A representative of the American Chamber of Commerce in Vietnam proposed that Vietnam consider opening up its doors to investors in key infrastructure areas and public sectors such as telecommunications, electricity, energy, transport and education and training.

Ashok Sud, president of the bank working group, praised the Vietnamese government and the State Bank of Vietnam for their efforts to introduce stimulus packages and keep the budget deficit low. He said Vietnam should amend and supplement some provisions of a bill on credit organisations to help the country access foreign loans more easily.

Delegates shared the view that given the current global context, Vietnam should focus on maintaining its competitive capability on the world market. They said that Vietnam might lessen the impact of the global financial crunch by stimulating the domestic economy, forming a favourable business environment and creating good conditions for the private sector to further invest in infrastructure to stimulate growth.

The business forum was held ahead of the mid-term consultative group meeting for Vietnam which will take place in the Central Highland City of Buon Me Thuot on June 8-9.