Vietnam needs stable legal institutions to attract investors. In recent times, the Vietnamese Government has made great efforts to […]
In recent times, the Vietnamese Government has made great efforts in perfecting market economic institutions to accompany developmentHowever, Vietnamese law changes so quickly that it is difficult for businesses to understand when investing - This is information shared by many businesses at the 2015 Business Forum held on the afternoon of August 17 in Ho Chi Minh City.
Speaking at the forum, Deputy Prime Minister Vu Van Ninh said that in recent years, Vietnam's economy has achieved important indicators, ensuring reasonable growth, creating favorable conditions for businesses and investors to do business in Vietnam. The average growth over the past 5 years has been approximately 6%, in the first 6 months of this year the economy has regained recovery momentum with 6.28% - the highest level in the last 5 years. Also according to the Deputy Prime Minister, Vietnam has been increasingly perfecting its market economy institutions to always accompany and create the best business environment for the business community.
Ms. Somhatai Panichewa - President and General Director of Amata Vietnam assessed that it cannot be denied that the Vietnamese Government has made great efforts in perfecting the policy system for foreign investors, but I find that Vietnam's laws change too much, too quickly, making it difficult for investors to keep up. According to Ms. Somhatai Panichewa, when the law is stable, investors will feel secure, confident and make long-term investments.
Similar to the above viewpoint, many other businesses also believe that Vietnam needs to extend the legal change period and have clearer and more specific legal regulations for investors. Only when the law is clear can businesses plan specific strategies and make good use of the trade agreements that Vietnam has.
| Deputy Prime Minister Vu Van NinhI hope that investors and businesses will share experiences and propose solutions to overcome challenges and complete the strategies of each investor and business. On the part of the Vietnamese Government, we currently commit and send to businesses and investors the message of persistently pursuing the goal of macroeconomic stability, on that basis, promoting administrative reform to create a competitive environment for businesses.
Although the Chinese Government's devaluation of the Yuan has had an impact on the Vietnamese market, Vietnam has enough ability, conditions, and resources to implement it successfully and affirms its continued participation in the world market in accordance with Vietnamese law. |
Regarding the issue of business health as well as the ability to take advantage of opportunities from trade agreements, Mr. Mai Huu Tin - Chairman and CEO of Uni Group Investment Joint Stock Company said, we are talking a lot about opportunities after trade agreements, but do those opportunities really belong to Vietnamese businesses when 96% of our country's businesses are small and medium enterprises. These subjects have weak financial capacity, difficulty attracting high-quality personnel and the ability to join the global value chain is very low.
With specific evidence, Mr. Tin said, if you compare a Vietnamese wood processing enterprise with an investment capital of 10 million USD, employing 2,500 workers with an enterprise with 100% foreign capital, investing 15 million USD and employing 1,000 workers, you will see the difference when the sales of the two enterprises are the same but the profit of the Vietnamese enterprise is only 3% and the foreign enterprise is 10%. This is the reason why many Vietnamese businesses, when they have built a better brand, sell to foreign businesses.
Mr. Vu Tien Loc - Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) admitted that Vietnam currently lacks large-scale enterprises and mid-range enterprises that can promote the development of supporting industries, thereby promoting the development of the economy.
| At the 2015 Business Forum, Forbes awarded the 50 best listed companies in Vietnam. Enterprises on this list have outstanding business results in 14 industries, have a leading position in the market and bring high profits to investors. The list is built based on the parent magazine's company ranking method, taking into account the characteristics of listed businesses in Vietnam. Data used for evaluation is based on audited financial statements of 3 consecutive years. This is the third year Forbes Vietnam has published this list. |
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