Vietnam to continue improve business climate

“Vietnam will continue to improve its business climate for both domestic and foreign enterprises,” affirmed Minister of Planning and Investment Vo Hong Phuc at the Vietnam Business Forum held in Hanoi this morning.

Minister Phuc said that the country would do its best to attract foreign investment by issuing more favourable policies and at the same time improving infrastructure and raising the quality of human resources so as to meet increasing demands of investors.

He pointed to the positive changes of Vietnam in various fields this year, including high level of growth and remarkable increase in FDI.

The Minister reaffirmed the inter-ministerial determination to strictly implement commitments to WTO under the roadmap, and particularly the implementation of such commitments in the opening of service market access and conditional investment sectors.

“The Government of Vietnam is determined to improve the regulatory system along with facilitating the business and investment environment,” he stressed.

He said that Vietnam was preparing the most favourable conditions for attracting and effectively using foreign investment capital so as to reach a GDP growth rate of 8.5-9% and escape the list of “under-developed countries” in 2008.

Speaking at the event, Mr Ajay Chhibber, country director of the World Bank in Vietnam, said that an amount of US $15 billion in foreign investment capital registered in 11 months of 2007, an increase of about 38% as compared to last year and expected to reach US $16 billion in the whole year of 2007, proved the attractive destination of Vietnam among foreign investors.

He affirmed that the World Bank is ready to support Vietnam in implementing the WTO commitments.

He pointed to the need of speeding up administrative reform in order to create a more attractive destination for foreign businesses. He pointed to a significant example of Dong Nai province which attracted a remarkable amount of FDI since the locality applied the one-door mechanism.

The country manager of the International Finance Corporation, Sin Foong Wong said that Vietnam was enjoying many positive changes, creating a motivation for the country’s economic development in the coming years.

“Vietnam has seen rapid progress in meeting the requirements of an open economy and in implementing WTO commitments,” he said.

Chairman of EuroCham, Alain Cany, highlighted the reforms brought about by the Government of Vietnam which are clearly illustrated by the country’s successful WTO accession, consistent levels of high economic growth, tumbling poverty levels and Vietnam’s continuing rise in regional and international affairs.

EuroCham pledges its continued support as the nation continues in its ambitious agenda of growth and reform in the months and years ahead,” he said adding that “we look forward to working with all our members and partners, both Vietnamese and European, to maximise their success in an ever more vibrant Vietnam.”

The Vietnam Business Forum is a structured and on-going dialogue between the Vietnamese Government and the business community to develop a favourable business environment that attracts and stimulates growth. The forum is jointly organised by the Ministry of Planning and Investment, the International Finance Corporation and the World Bank.

The results of a recent survey by the Japan Bank for International Co-operation (JBIC) also shows that 2007 is the second year Vietnam has maintained its third position in the rankings of promising regional countries over the medium term, only after China and India- newly emerging economies in Asia.

(Source: ND)