Vietnam raises the bar for national competiveness

The new resolution is based on the premise that ministries, sectors and localities should take the initiative to focus on improving the business environment and resolving the issues reflected in the nation’s World Trade Organisation (WTO) ease of doing business rating.

If they do this successfully, then large foreign multinational companies in manufacturing and retail will come to Vietnam and invest, create jobs and bring technology and integrate Vietnam into globally competitive supply chains.

By contrast, 2015 acknowledges the underlying economic reality that rigid governmental content requirements burdened down with complex laws and regulations will most assuredly dissuade businesses from coming to Vietnam and thereby thwart the economic advancement of the nation.

“It’s time for Vietnam to rise to the occasion and step into a new period of development. Specifically, the country should increase the attractiveness of its business environment. If it’s done well, Vietnam's position will be enhanced regionally and globally,” said Minister of Planning and Investment Bui Quang Vinh.

“We must elevate our national competitiveness in light of the Vietnam-EU Free Trade Agreement, and the Trans-Pacific Partnership (TPP) Agreement in the offing if we are to effectively compete in the global marketplace.”

Deputy Foreign Minister Bui Thanh Son in turn emphasised that Vietnam is entering a new period of international integration with the ASEAN Economic Community (AEC) in sight and set to officially come into existence on December 10 of this year.

“Vietnam has its own special advantages and potential. If it is successful in invigorating its competitiveness, it will create more opportunities to develop quickly and firmly,” said Son.

Over the two-year period, 2015-16, the country collectively should focus on improving the business environment by  streamlining administrative procedures, making them less complex, less costly to comply with and making them less time consuming.

All of these objectives should be accomplished within the context of ensuring transparency, enhancing the accountability of state administrative agencies and enacting regulations on a basis consistent with international norms.

Specifically, the resolution sets out a target to raise the country’s business environment indicator to at least the level of the ASEAN-6 group (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand) in 2015.

The targets include reducing the average time required to comply with the tax laws and file annual returns to no more than 121.5 hours and social insurance returns to a maximum of 49.5 hours per annum.

As a corollary goal the government aims to raise the number of businesses that file their returns online tax to 95%.

In 2016, the resolution evidences a strategy to reach the average ease of business indicators to that of the ASEAN-4 group (Singapore, Malaysia, Thailand and the Philippines).

In addition, the goal is to capitalise upon advancements in science and technology to restructure the agricultural sector toward mass production of agricultural products, promote product quality and competitiveness, while ensuring national food security, food hygiene and safety.

The resolution also focuses on increasing value-added in industries like finance, banking, insurance, communications, logistics, petroleum processing, seaport services and sea shipping, marine product processing and sea and island tourism.

Ministries, sectors and localities are also urged to contemporaneously implement restructuring measures to increase operational effectiveness of state-owned enterprises.

Special policies and mechanisms should also zero in on formulating the development of small and medium sized businesses, or more specifically smallholders and small mom- and-pop family businesses, providing them with equal access to credit, land and natural resources.

In addition, it sets forth measures of public service socialization, including restructuring public non-business units and giving them more autonomy and accountability following the mechanism applicable to enterprises, especially those in the fields of education, health care and technology.