Foreign business associations discuss achievements and difficulties in doing business in Vietnam.
The Vietnam Business Forum (VBF) 2015 mid-term meeting officially opened in Hanoi this morning, with the theme “Enhancing the Capacity of the Private Sector in the Country, Ensuring Successful Integration”.
According to a report presented by the Vietnam Chamber of Commerce and Industry, 46 per cent of private enterprises in the country and 50 per cent of foreign direct investment (FDI) enterprises expect to expand their production and business scale in the future, which is the highest level since 2012.
The performance of the private sector in the country, however, has not improved significantly. Nearly 70 per cent of private enterprises still aren't profitable despite the sector contributing nearly 50 per cent of GDP, which shows that it is quite fragmented.
At the forum, enterprises expressed a desire for the government to create a favorable business environment and guarantee the security of businesses.
The government should also assist small and medium-sized enterprises (SMEs) to improve their competitiveness and prepare for integration and provide them with complete and timely information on the specific commitments, opportunities, and challenges of integration.
“Vietnam has been successful in integrating into the global economy in general and into the US market in particular,” said Ms. Sherry Boger, Chairwoman of the American Chamber of Commerce in Vietnam (AmCham).
Last year US-Vietnam trade turnover totaled $36.3 billion, an increase of 20 per cent, and it’s expected to reach $72 billion by 2020 if such growth continues. Vietnam was also the largest supplier to the US market among ASEAN countries. Moreover, she added, revenue from members of AmCham continued to grow.
Mr. Tomaso Andreatta, Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham), said that its latest Business Climate Index (BCI) showed that its members were optimistic about the efforts of the Vietnamese Government to improve the business environment and the country’s competitive capacity.
“We appreciate the efforts of Vietnamese leaders in making the economy stable and recording strong growth of 6 per cent,” said the Chairman of the Japanese Business Association in Vietnam (JBAV), Mr. Shimon Tokuyama.