View of arbitrators

Việt Nam vows to improve business environment

27/02/2019 09:16

Nguyễn Đình Cung, director of the Central Institute for Economic Management, arbitrator at Vietnam International Arbitration Centre (VIAC), talks to Hải Quan (Customs Online) online newspaper about Việt Nam’s efforts to improve its business environment in 2019. 

Nguyễn Đình Cung — Photo: Hải Quan newspaper

Can you tell us how the business environment in Việt Nam has changed since the Government issued Resolution 19 in 2014?

The achievements made over the past five years as reported by Government offices and agencies do not truly reflect what has been going on at many enterprises. There are still big gaps between reports and reality. For example, Government agencies claim they have successfully streamlined many business conditions to enable enterprises to operate more easily. However, in reality, slashing business conditions is almost meaningless to many enterprises. The most important thing is for the Government to facilitate conditions for enterprises to do business.

What should the Government do to help enterprises improve their competitiveness in accordance with Resolution 02/2019/NQ-CP?

There are two important things the Government should do to help enterprises improve their competitiveness. First, the Prime Minister should give an administrative order to all Government agencies to help enterprises in case they ask for help. Second, all local public agencies should be pro-active in supporting enterprises in need.

The number of disputed contracts and enterprises going bankrupt is at its highest in five years. What should the Government do to improve this situation and help enterprises increase productivity?

If we want to improve the business environment, we have to improve these two indicators.

Disputed contracts are not something new. But how to solve the dispute in order to satisfy both parties is very important. This is still an open question without an answer right now.

Regarding the indicator on the number of enterprises declaring bankruptcy, we must find a good mechanism to settle this issue. As far as I know, the Government has instructed the Ministry of Justice to co-operate with courts and agencies to improve and reform these two indicators. We hope with active involvement from the Ministry of Justice and courts, business conditions in Việt Nam will improve. These two indicators are essential for a market economy. If Việt Nam can’t improve these two indicators, I’m afraid to say Việt Nam will not become a member of ASEAN 4.

What are the new points in Resolution No 2 that will take the Vietnamese business environment to a higher place in 2019?

Resolution No 2 on improving business conditions and raising competitiveness in 2019 has some updates from Resolution No.1

Resolution No 2 doesn’t have specific tasks and measures for each ministry/sector; it defines specific indicators/targets.

Resolution No 2 states clearly that all ministers have to take responsibility for the performance of their ministries/sectors.

In 2019, the Government will focus on improving the country’s business environment in the four main areas as follows;

First, continue to simplify business conditions.

Second, to improve inspections in all economic sectors with a focus particularly on customs procedures.

Third, to apply electronic payment for all public transactions/services.

Fourth, to develop an innovative ecosystem for entrepreneurship and innovation. — VNS

For original upload, click here 

Share Post
  • Concerns raised over largest infrastructure project in Vietnam 11/07/2019 14:10

    The tentative total investment for the North-South high-speed railway, according to the Ministry of Planning and Investment (MPI), is about US$26 billion – $32 billion less than the previous proposal by the Ministry of Transport (MoT).

  • EU-Vietnam pact to deliver trade and investment bonanzas 08/07/2019 16:03

    The EU will eliminate duties for 84 percent of the tariff lines for goods imported from Vietnam immediately at the entry into force of the EVFTA.

  • Finding ways to develop central area economy 20/06/2019 14:17

    Associate professor Trần Đình Thiên, former director of the Central Institute for Economic Management and member of the consultancy team for developing the central coastal area, talks to Đầu Tư (Investment) newspaper about economic development of the area.

  • European firms seek to speed up EVFTA approval 05/06/2019 14:50

    Nicolas Audier, co-chairman of the European Chamber of Commerce in Vietnam (EuroCham), told participants at the launch ceremony of the Whitebook 2019 in Hanoi that European firms want to speed up approval of the EU-Vietnam Free Trade Agreement (EVFTA).

  • Another way to attract foreign investment 14/05/2019 11:33

    Most enterprises are not willing to increase their foreign ownership limit because when this ratio rises above 51% the companies will be treated as foreign investors. This will curtail several business areas and require companies to change investment criteria to that of foreign investor. Meanwhile, many foreign investors claim that it is very difficult to buy good stocks due to limit in foreign ownership in various companies.


  • Foreign businesses accelerate indirect investment in Vietnam 07/05/2019 10:04

    Vietnam high and steady economic growth in the past years has strongly drawn foreign capital and investment in local firms considered as the shortest way for foreign investors to enter the Vietnamese market.

  • Vietnam well-positioned to develop industrial property 07/05/2019 10:01

    Vietnam is well-positioned to develop industrial property, experts said at the Vietnam Industrial Real Estate Forum 2019 in Hanoi on April 23.


  • Vietnam mulls PPP Law with sovereign guarantees to reassure investors 19/04/2019 08:12

    A proposed new law envisages offering sovereign guarantees to attract private investment in large transport infrastructure projects.