With the Vietnam Global Investment Forum wrapping up and the Global Competitiveness Report 2015-2016 being released, Minister of Planning and Investment Bui Quang Vinh spoke with local media about Vietnam's competitiveness.
Vietnam saw significant progress this year in the Global Competitiveness Report (GCR) 2015-2016 released by the World Economic Forum (WEF), rising 12 places compared to last year. What are your thoughts on the result?
It comes from Vietnam becoming a global player. The continual increase in ranking reflects the efforts the country has made, especially recently, with the government issuing Resolution No. 19 on improving administrative procedures and enhancing the economy’s competitiveness.
Does 56th place in a list of 140 economies reflect Vietnam’s competitiveness?
I think that over 700 delegates from 32 countries attending the Vietnam Global Investment Forum, held by Euromoney and the Ministry of Planning and Investment, partly expresses the competitiveness and attractiveness of Vietnam. With Resolution No. 19 on reforming administrative procedures, the signing of free trade agreements (FTAs), and the TPP shows that Vietnam has done its best to improve its competitiveness.
Since 2011 there have been periods when Vietnam’s economy has been in a very difficult situation, but the goals the government has set are entirely reachable. Inflation this year will not exceed 1.5 - 2 per cent while GDP will be at least 6.53 per cent and 6.7 per cent is expected in 2016.
The economy has been facing many difficulties in recent times. China’s growth has fallen but Vietnam is able to turn this into an opportunity, which is evidence of a well-managed economy and enhanced competitiveness.
Among the factors that make up competitiveness, which has improved the most?
Institutions. Vietnam has adopted laws and decrees creating greater transparency, such as the Law on Enterprises and the Law on Investment. Resolution No. 19 has directly improved administrative procedures. I think this is Vietnam’s greatest achievement.
Though it has constantly jumped places in recent years, Vietnam remains mid-table. What do the government and enterprises need to do to continue to improve competitiveness into the future?
We must accept competition, which is the only way ahead. At the Vietnam Global Investment Forum there were opinions expressed that the State must protect domestic enterprises. But we signed FTAs because of our desire for stronger integration, so we must accept more competition to develop.