Present at the forum were Minister of Planning and Investment Vo Hong Phuc, director of the World Bank (WB) in Vietnam, Martin Rama, and country director of International Finance Company (IFC), Sin Foong Wong.

A recent survey on the business environment in 2008 showed that after the high growth in 2007, Vietnam’s economy is facing great challenges. This year’s survey included 254 enterprises, 77 percent of which are domestic businesses and the remaining (23 percent) are foreign ones.

Although the business environment in 2008 is not as good as in previous years businesses are optimistic about it in the coming years. This demonstrates that they believe Vietnam’s ability to overcome challenges to stabilise the macro-economy and improve the environment for business in the near future.

EuroCham president, Alain Cany, said the confidence of foreign investors has been proven in 2008 through high indirect investment capital pouring in the securities market and the disbursement of direct investment capital reaching nearly US$10 billion. A sharp decrease in the inflation rate in recent months shows that financial and monetary policy applied in the second quarter was successful. Trade deficit fell and foreign exchange reserves were maintained.

Regarding co-operative prospects with Vietnam, Alain Cany said that EuroCham and its members expressed their strong belief in Vietnam’s potential as a leading country in the region and an attractive destination for European investors. EuroCham is willing to help Vietnam further promote its success and wants to work with the Vietnamese Government and EuroCham members and partners to maximise success in Vietnam.

A survey conducted by the Japan Bank for International Co-operation (JBIC) in 2008 shows that Japanese companies are still keen on the Vietnamese business environment (Vietnam ranked third in its list in 2006) but the number voting in support was somewhat less.

A JBIC representative said that Vietnam still maintains great potential but Japanese investors are less interested in cheap labour forces. Poor infrastructure, especially roads, ports and electricity in some regions is a serious problem for them and Vietnam should further develop its ports.

The Vietnam Business Forum includes dialogues on themes such as banking, infrastructure, production and distribution, mineral exploitation, tourism and land. Most businesses said that they will focus on available resources to maintain key areas of operation and traditional markets. They think that it is high time for them to strengthen management work and human resource training by restructuring the organisation of operations to improve their competitive edge.