Vietnamese efforts to improve local business climate slowing

Vu Tien Loc, chairman of the VCCI, said the Vietnamese business climate features many restrictions that must be resolved over the next five years.

Despite legal regulations, administrative procedures, and business investment conditions becoming increasingly transparent, the public disclosure of State plans and reports for enterprises have been noted by many as being far too general and not insufficient.

Conditions to join a number of sectors have been cut in order to facilitate more small and medium-sized enterprises (SMEs) to enter the market, although policy fluctuations for sectors which require large investments and with long capital return periods have hindered companies from committing their capital.

While many administrative procedures can now be processed online, they still exhibit shortcomings and remain challenging for many users, the VCCI leader said.

Tran Thi Hong Minh, director of the Aus4Reform Programme, said the implementation of the Australian-funded programme as a means of supporting Vietnamese economic reforms have so far recorded significant achievements. Indeed, they have contributed to helping the country boost its international rankings.

Minh also pointed to a series of bottlenecks facing businesses, including overlapping and unnecessary business conditions, along with an ineffective single-window mechanism.

Moving forward, additional improvements towards sustainable development require combined effort from both businesses and State agencies, Loc added