Home » Business » Vietnam aims for attractive business environment

Vietnam aims for attractive business environmentVietnam will consider reducing corporate income tax and improve its business environment to match the offerings of regional countries.

Prime Minister Nguyen Tan Dung made the affirmation during his speech at the 2012 Consultative Group (CG) Meeting for Vietnam, opening in Hanoi on December 10.

Dung thanked international donors for their positive assessments of Vietnam’s recent socio-economic achievements as well as for the frankness of their opinions when pointing out the country’s weaknesses.

For the past 20 years CG meetings have followed every step of Vietnam’s development, from a poor nation in the 1990s to the middle income country classification it now enjoys. Vietnam has even fulfilled its Millennium Development Goals (MDGs) for poverty reduction.

Agricultural and export achievements in 201

Vietnam’s economic partners were disadvantaged by the global context of declining trade exchanges, a challenge only exacerbated when the country encountered runaway inflation, low credit growth, and increasing pressure on its poor.

Vietnam has embarked on a range of responses to curb inflation, stabilise the macroeconomy, and ensure social welfare. The situation has thus improved remarkably and the 2012 GDP growth rate is now estimated at 5.2 percent.

Dung highlighted Vietnam’s agricultural and export achievements. The country exported more than 7.5 million tonnes of rice and exports in general grew by 18 percent, ensuring export-import balance. Inflation was kept at 7.5 percent and the economic surplus reached nearly US$8 billion.

The initial successes can be credited to national economy, financial, and banking market restructures, and renewing growth models.

Vietnam maintained socio-political stability and ensured social security and social welfare over the year, Dung said.

The Government leader acknowledged the difficulties and challenges Vietnam is facing, such as an unstable inflation rate, large inventories, limited resource mobilisation capacities, job creation, and salary reform.

The equitisation of State-owned enterprises (SoEs) remained slow and there were little or no improvements in quality, efficiency, national competitiveness, administrative reform, and anti-corruption.

To deal with these issues, Dung argued, the Government needs to adopt more flexible management policies, mobilise all domestic resources, effectively implement solutions to short term difficulties, record a higher growth rate next year, and create a firm foundation for sustainable growth.

Focusing on administrative reform

To successfully fulfil next year’s targets as set by the National Assembly (NA), the Vietnamese Government must realise macroeconomic growth, record a higher GDP growth rate, and lower the inflation rate in 2013.

The targets for next year’s GDP growth rate and inflation rate are set at 5.5 percent and 6.5 percent respectively. The balance of payment will be improved and information about the macroeconomy regularly updated to consolidate the people’s and investors’ trust.

The Government will focus on helping businesses deal with bad debts, large inventories, burdensome credit interest rates, high added value production restructuring, energy efficiency, and environmental protection.

PM Dung said he hopes donors will continue supporting the public-private partnership (PPP) model to develop infrastructure, particularly in relation to land management.

The Government will improve its management through administrative reforms aiming to reduce bureaucracy restricting citizens and businesses, prevent wastefulness, and create a competitive environment for attracting additional foreign direct investment (FDI).

Dung expressed his confidence international donors will stand side-by-side with Vietnam on its new path full of challenges but towards the future’s bright prospects.


No comments yet... Be the first to leave a reply!