INDUSTRIES

Improving business environment and competitiveness key objective in 2024

The Vietnamese government remains fully committed to improving the business environment and enhancing the country’s competitiveness, heard participants at a conference in Hà Nội yesterday.

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Participants at a conference in Hà Nội on February 29 discussing measures to improve Việt Nam’s business environment and competitiveness. VNA/

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HÀ NỘI The Vietnamese government remains fully committed to improving Việt Nam’s business environment and competitiveness, participants at a conference in Hà Nội were told yesterday.

Dr Trần Thị Hồng Minh of the Central Institute for Economic Management (CIEM), said that the business environment is a crucial pillar of Việt Nam’s institutional reform and aims to create the most favourable conditions for businesses across all sectors.

Representatives from the Ministry of Planning and Investment (MPI) said the ministry has been tasked by the government with advising and issuing mechanisms and policies to promote institutional reform, establish a business-friendly, convenient, safe environment in line with international standards and adaptable to development trends for investors and businesses.

The government’s direction includes key objectives including the removal of unnecessary legal barriers in project implementation, the conditions required by businesses and investors, the streamlining of inspection activities and the deployment of the National Single Window.

In addition, measures have been taken to enhance the efficiency of administrative procedures, IT technology, interconnection and data sharing. Meanwhile, access to capital for businesses, promotion of investment, innovation, digital transformation, green conversion, and quality of business services are other government objectives.

According to a report by CIEM, 2023 was a difficult year for the business sector while barriers to investment and business in many fields became more burdensome, significantly impacting the confidence and motivation of investors and businesses.

It has resulted in a decrease in the number of new businesses, reactivated businesses, registered capital, and employment compared to the same period in 2022, while the number of businesses leaving the market increased significantly.

The ability to absorb capital by businesses has also been on the decline, leading to slow credit growth despite the continuous interest rate reduction by the State Bank of Vietnam (SBV), and exports continued to face difficulties and slow recovery.

Economic forecasts for 2024 have indicated that while favourable and challenging factors of 2023 will persist, the challenges will likely worsen. In January 2024 alone, the number of businesses exiting the market was nearly twice the number of businesses entering the market, which reflected numerous challenges and difficulties faced by businesses.

There is a pressing need to accelerate and effectively implement business environment reforms to strengthen confidence and create business motivation. As a result, the government has reinstated the Business Environment Improvement and Reform Programme by issuing Resolution 02 on January 5, 2024, aiming to renew the spirit of reform among ministries, sectors, and localities.

“The resolution shows improving the business environment remains a top priority, of the government. It has been expected to help boost investors’ and businesses’ confidence, and promote economic recovery and development,” said Minh.

Representatives of ministries, sectors, localities, international organisations, business associations, business communities, research institutes, universities, and industry experts attended the event.

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