(VOVworld) – The Vietnamese government has paid much attention to improving the business environment, considering it a long-term task to help domestic enterprises increase competitiveness. The improved business environment will help Vietnamese companies assert their brands and compete fairly with their international partners, especially when Vietnam is fully integrating into the global economy and has been signing various free trade agreements. 

Vietnam is seeking to improve its business environment to raise the competitiveness of the economy. (Photo: VNA)

Since July 1st the revised Investment and Enterprises Laws began to take effect. These documents are considered a breakthrough reform in improving the business environment for enterprises to develop.

In addition, after 2 years of implementing a government resolution on measures to improve the business environment and enhance national competitiveness, thousands of administrative procedures have been cut to reduce barriers for enterprises. This resolution is known as Resolution 19.

Nguyễn Minh Thảo, Deputy Director of the Department of Business Environment and Competitiveness of the Central Institute for Economic Management, says: “Pursuant to the government schedule, a new resolution will be promulgated to replace Resolution 19, under which the local business environment’s indicators will reach the average level of the four biggest ASEAN economies, including Singapore, Malaysia, Thailand, and the Philippines by the end of 2016. Resolution 19 has assigned specific tasks to each ministry, sector, and locality. To implement the resolution effectively will require the direct involvement of leaders of ministries and agencies.”

One of the key tasks to improve the business climate and national competitiveness is to reconcile investment and business condition regulations in line with the requirements of the Law on Investment. Accordingly, new decrees should ensure publicity, transparency, objectivity, and time-saving for people and businesses.

Trần Đình Toản, Deputy Director General of the OSB Investment and Technology Company, says: “We’re glad to see that the government’s recent activities have boosted business confidence and improved their competitiveness. Administrative procedures in taxation, customs, and other sectors have gradually been reformed. These are positive signals for the Vietnamese business community.”

People complete business registration at the HCM City Department of Planning and Investment. (Photo: Tuoitre)

To help businesses, especially private companies and small and medium-sized enterprises, to develop and improve their competitiveness, the Vietnamese government has issued Resolution 35 on supporting and developing enterprises by 2020 which addresses hurdles faced by businesses in capital resources with reasonable interest rates, administrative procedures, the investment environment, and applied technology.

Phạm Ngọc Thành, Director of the Phúc Lâm Consulting Company, says: “We hope that once resolution 35 is put into operation, it will create a flexible mechanism to help SMEs like us and start-up businesses gain access to capital resources, and enjoy better preferential policies, because SMEs face many difficulties during their initial periods. Implementation of the resolution will require support activities in communications and promotion programs for Vietnamese enterprises.”

Creating a transparent and stable business environment is one of the prerequisite conditions for Vietnamese enterprises to grow sustainably and compete with international rivals. This has become more important with Vietnam about to become an open market as a signatory to free trade agreements.