Vietnam must double down on improving business environment

Improving the business environment is among Vietnam's top priorities in the future, especially as the country is trying to get the economy back on track, said economists and policymakers at a conference in Hanoi on March 3.
Vietnam must double down on improving business environment ảnh 1Workers return to work in a footwear factory in southern Vietnam (Photo: VNA)
Hanoi (VNS/VNA) - Improving the business environment is among Vietnam's toppriorities in the future, especially as the country is trying to get theeconomy back on track, said economists and policymakers at a conference in Hanoion March 3.

Prolongedsocial and mobility restrictions to check the spread of COVID-19 in recentmonths had significantly hampered efforts to improve the country's businessenvironment, said Nguyen Dinh Cung, former head of the Central Institute forEconomic Management (CIEM).

As reformslost momentum there had been signs of resistance coming from the government'sministries and offices against changes.

"We havewitnessed the return of business requirements that were once removed as well asadditional requirements put in place," he said. 

Dr Nguyen MinhThao, head of CIEM's business environment and competition department, saidefforts to improve the country's business environment had slowed downsignificantly since the end of 2019.

Thao said toomany commitments had been made on paper by the government but too few had beenimplemented and reviewed. 

"Forexample, while local governments and ministries reported an increased number ofadministrative procedures available online in many cases they have not beenable to effectively service businesses," she said. 

It has beenreflected in Vietnam's less-than-impressive Economic Freedom score. The countryranked 17th among 40 countries in the Asia–Pacific region with 61.7 points,just 0.01 points above the world's average.  

Speaking atthe conference, Deputy Minister of Planning and Investment Tran Duy Dong saidthe Government was fully committed to the long-term and sustainable improvementof the business environment and considered it a driving force for economicrecovery and national development. 

Dong said thePrime Minister's Office in January approved the Government Decree 02/NQ-CP andauthorised funding for a programme designed to speed up the process. TheGovernment had also reiterated its priorities to boost the country'scompetitive capacity. 

Thao, however,said 24 of 26 of ministry-level bodies had just set deadlines to implementreforms. Notably, the Ministry of Culture, Sport and Tourism and VietnamChamber of Commerce and Industry had not made public information regardingtheir action plan. 

Similarly,just 50 out of 63 local governments had reported with the Ministry of Planningand Investment regarding their action plans while 13 others including thelocalities of Ba Ria-Vung Tau, Bac Lieu, Dong Nai, Ha Tinh, Hoa Binh, Hung Yen,Lai Chau, Long An, Quang Binh, Tay Ninh, HCM City, Tra Vinh and Vinh Long hadnot. 

Commenting onthe slow progress, Cung stressed the importance of support measures for thebusiness community, which has been severely battered by the pandemic and is indesperate need of streamlined and less costly services to recover. 

He called onall governmental bodies and offices to double down on their effort to improvethe business environment. He suggested no more technical barriers be createdwhile local governments actively review and identify wasteful and costlyadministrative procedures to be removed immediately. 

Cung said theeffort must be concentrated to push ongoing reforms further while stomping outresistance from ministerial offices to changes. There should also not bedistinctions and different treatments among domestic and international firmswhen it comes to administrative reforms./.
VNA

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