(VOVworld) – Vietnam’s international integration process has entered a new phase, with Vietnam continuing to open its market by joining more international economic institutions. Improving the competitiveness of Vietnam’s economy and that of Vietnamese businesses to make the most of the opportunities that integration might bring about has become an urgent task. Anh Huyen comments:
Economists forecast that Vietnam’s economic growth will pick up its pace and Vietnam will become an attractive investment destination this year. Vietnamese businesses, most of which are small or medium-sized, have made thorough preparations to improve their competitiveness. The government has devised solutions to aid domestic businesses in achieving sustainable growth in the future.
Improving businesses’ competitiveness
Businesses play an essential role in each nation’s development but they depend largely on the effectiveness of state governance. The government has issued a number of measures to step up the process of restructuring the economy, improving the business environment, simplifying administrative procedures, and supporting business growth. These measures have been lauded by the business community. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said: “These measures included the National Assembly’s approval of the revised Enterprise and Investment Laws with the purpose of improving Vietnam’s competitiveness. Vietnam will continue to step up the equitization of state-owned enterprises and improve the performance of public agencies.”
Revisions to the Enterprise and Investment Laws have unified business regulations and eliminated discrimination between domestic and foreign investors. Enterprises are now free to choose their areas and forms of production and business. Economist Le Dang Doanh said: “The revised Enterprise Law discarded the registration of business areas and allowed enterprises to make their own seals, which will eliminate a period of 14 days to apply for a seal. Business areas have been clarified.”
In addition to administrative reform, businesses are also being supported in obtaining loans and improving their governance. Bui Thu Thuy, Deputy head of the Business Development Directorate of the Ministry of Planning and Investment, said: “We have coordinated with other relevant ministries and sectors to work out programs to help businesses access bank loans. We are negotiating with the World Bank a project to improve the competitiveness of small and medium-sized enterprises.”
Enhancing internal strength
Vietnam will continue to implement its international integration commitments and will join a number of free trade areas this year. Vietnamese businesses have made necessary preparations to make the most of the opportunities such cooperative mechanisms will create. Le Tien Truong, Deputy General Director of the Vietnam National Textile and Garment Group, said: “The garment and textile sector has been preparing for Vietnam’s international integration. We have focused on increasing our added values and improving our design and material preparation. This process has been going on for years ever since the government began to negotiate the Bilateral Trade Agreement with the US, Vietnam’s entry into the World Trade Organization, and the Trans-Pacific Partnership Agreement.”
A number of Vietnamese businesses have survived the recent financial crisis thanks to good governance, market diversification, and effective risk management. The government’s institutional reform and businesses’ efforts promise a brighter prospect for Vietnam’s economy this year.