Prime Minister Nguyen Xuan Phuc speaks at the 2017 Vietnam Business Forum (VBF)’s year-end session in Hanoi on December 12 (Photo: VNA)Hanoi,(VNA) – The business community will define the future of the Vietnamese economyin the coming decades and serve as an important driving force to achieve prosperity,stated Prime Minister Nguyen Xuan Phuc at the 2017 Vietnam Business Forum (VBF)’syear-end session in Hanoi on December 12.
In his speech at theannual government – enterprise dialogue, Phuc acknowledged the businesscommunity’s contribution to national socio-economic development, noting that recommendationsand proposals of the business community at both micro- and macro-level have assistedwith the Government’s efforts in developing the country.
The PM highlightedthe strong growth of the Vietnamese economy as 2017 is coming to an end, withall 13 targets set for the year achieved or overfulfilled. The GDP growth, at 6.7percent, is the highest in nearly 10 years.
He expressed hisdelight at the record number of over 120,000 newly established firms and anestimated three million billion VND in registered capital forecast for thisyear.
Investment in theeconomy not only benefits enterprises and investors, but also supports theGovernment’s reform efforts, Phuc said.
Despite this, the PMnoted that Vietnam needs to work harder to improve its ranking of businessclimate and competitiveness, towards ranking among top countries in ASEAN andmeeting high standards set by the Organisation for Economic Cooperation andDevelopment (OECD).
Concerning new trendsimpacting on business models in Vietnam, the PM pointed to the expansion of themiddle-income group, citing a World Bank report that showed the group now makesup 10 percent of the Vietnamese population; the proportion is projected to hit50 percent by 2035. The trend will change the local consumption structure, thusopening up business opportunities.
He also highlightedtechnology development in the era of the 4.0 industrial revolution, automationand artificial intelligence.
Vietnam has 52million internet users and about 55 percent of its population own smart phones.By 2020, eight in every 10 Vietnamese will use smart phones. The situation laysan important basis for investors to promote their products and services amongpotential Vietnamese clients, the PM said.
Phuc emphasized thatnew drives for growth must be innovation and initiatives.
Mentioning theincreasing impact of digitising the management and supply of services, he saidcurrent limits and shortcomings of public services are pushing the Governmentto build an open-source e-governance system, which he considers a new growthdrive.
“Infrastructure andtechnology development are key to integration and welfare distribution,” saidthe PM.
The Government willprioritise investment in infrastructure towards smart and efficientconnectivity to improve transparency, and help businesses cut cost and boostcompetitiveness, while encouraging capital flow into education and technology,he added.
Considering stablemacroeconomics and society a competitive edge, Phuc said the Government willcontinue restructuring the economy, overhauling the State-owned business sector,handling bad debts, controlling budget deficit and public debts, reforming thetaxation system, and improving social welfare policy.
The Government pins hopeon a new generation of businesses that are capable of competing at home andoverseas, the leader stressed, adding that Vietnam is working to build abusiness climate that facilities all economic sectors.
At the same time, PMPhuc affirmed that Vietnam does not welcome business activities that pollutethe environment, degrade cultural values, and illegally exploiting local labour.
Based on thatspirit, the PM said he believes the VBF will continue being an important andeffective policy dialogue between the Government and enterprises toward meetingsustainable socio-economic development goals.
The VietnamBusiness Forum (VBF), which opened in Hanoi on December 12, is an annualdialogue between the Government and business community, co-organised by theMinistry of Planning and Investment, World Bank, International FinanceCorporation, and VBF Consortium.-VNA
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