Dec 4, 2012. Experts speaking at the Viet Nam Business Forum (VBF) in Ha Noi yesterday called for the Government of Viet Nam to take decisive action to enhance economic and financial reform to create a more attractive business climate.
The conference entitled ‘Restoring Economic Dynamism’ saw business leaders meet to discuss the challenges and opportunities for investment in the country.
According to Christopher Twomey, chairman of the American Chamber of Commerce (AmCham), Viet Nam faced challenges creating macroeconomic stability at a time of unacceptably high inflation, causing tension in the foreign exchange market and high interest rates.
“Many AmCham members found it more difficult to conduct business here than in past years,” he said, pointing out that the Government’s unsuccessful efforts to sufficiently manage business activity was one of the things discouraging numerous investors.
Chairman of the European Chamber of Commerce in Viet Nam, Preben Hjortlund, said the favourable treatment offered to State enterprises through loans, access to land and more limited profit targets was hampering the growth of the economy. “The Government should boost equitisation to obtain a more competitive market in which the market mechanism can do its work,” he said.
Twomey added that although the Government launched anti-corruption efforts in 2004, little progress had been made after eight years, citing a recent Amcham survey that revealed over 80 per cent of respondents listed corruption as one of their top concerns in Viet Nam. “Corruption is getting worse in every factor of doing business here.”
“Urgent reforms are strongly needed,” he stressed, adding that focus should be placed on addressing the real issues of the banking system and reform of SOEs to head for sound sustainable economic growth.
Read more …
The U.S. Embassy has received the AmCham Statement to the VBF as well as the Letter to the Minister of Justice and others regarding the amended Law on Lawyers, and will continue to advocate with the Government of Vietnam on the issues, to ensure that U.S. business interests are protected.