Nation must evolve to lure big business
HA NOI (VNS)- This was the view of attendants at the Viet Nam Business Forum entitled "New phase of economic reform: from agenda to action" held in Ha Noi yesterday to discuss ways for The European Chamber of Commerce in EuroCham Executive Director Paul Jewell said the BCI has experienced incremental improvements across the indicators, demonstrating that European companies have slowly regained trust in the Vietnamese market. He warned this was only the half-way point, adding that the BCI needed to significantly improve if Speaking at the meeting, minister of Planning and Investment Bui Quang Vinh said despite positive signs, the economy continued to face difficulties including low FDI inflows, high inventories, poor competitive capacity and a large number of dissolved businesses. "This is the reason businesses should share difficulties with the Government in the reform process to overcome challenges," Vinh said.
David Whitehead, chairman of the Australian Business Society in He added that a better investment climate would make it easier for the country to attract foreign direct investment in the context of the global economic slowdown. Despite the global headwinds, foreign direct investment (FDI) had increased considerably in recent times. If Mr Motonobu, chairman of the Japan Business Association in Viet Nam (JBA) agreed, saying that Japanese companies had invested US$4.2 billion into the country, making it the top international investor, accounting for 40 per cent of the country's FDI inflows last year. However, he said "It is important for He suggested three key points to eliminate bottle necks and attract more investment in Vu Tien Loc, President of the Viet Nam Chamber of Commerce and Industry (VCCI) proposed that the Government should continue to stabilise the macro economy, controlling inflation and achieving steady economic growth. "It is indispensable for He said the Government should lower corporate income tax to 20 per cent and remove the interest rate ceiling. Delegates at the event also confirmed the role of the private sector in the country's development. Preben Hjortlund, President of the European Chamber of Commerce in He said the Government should accelerate SOE equitisation to create a healthier competitive environment. Mark Gillin, President of the American Chamber of Commerce in Talking about the Government's recent move to set up a national debt trading company (VAMC), Alain Cany, VBF's co-chairperson said the establishment of VAMC would help ease banks' bad debt burden and helped reiterate the government's commitment to solving problems in the banking sector. However, he said investors felt frustrated after the State Bank of Viet Nam (SBV) decided to postpone the application of new debt classification regulations by one year. According to a report by the working group, "The delay of Circular 02 may setback transparency, an essential factor in solving problems in the banking sector quickly," the report said. The working group noted that Circular 02 would ensure banks produce more realistic reports on provisioning and would increase investors' confidence in the transparency of the banking system. In a speech delivered at the forum, Deputy Prime Minister Vu Van Ninh appreciated the executives' and donors' frank opinions. He said the Government would study them to come up with appropriate solutions. He also asked businesses to restructure themselves to improve their operational efficiency. The mid-term gathering was jointly held by VBF, the MPI, the International Finance Corporation (IFC), and the World Bank (WB). - VNS |
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