Closed Cooperation with Foreign Enterprises for Better Business Environment

“Cooperation for better business environment” was the topic of the meeting held in Hanoi on May 18 between VCCI and foreign business community in Vietnam. Some 20 representatives of business associations from the US, Japan, France, Nordic countries, UK, South Korea, Taiwan, China, Malaysia, Thailand, Singapore, etc. have engaged in frank and open discussion with VCCI leadership.

VCCI President Vu Tien Loc said that the Chamber has engaged deeply into the drafting of policy relating to business activities in Vietnam. In compliance with the State procedures, all bills concerning businesses must have the contribution of VCCI before presenting to the National Assembly and government. Currently, VCCI represents Vietnamese business community, Chair of ASEAN Chambers of Commerce, Chair of Greater Mekong Sub-Region Chambers of Commerce and next year Chair of ASEAN Business Advisory Council. Therefore, VCCI has contributed to the improvement of business environment not only in Vietnam but also in the region. So far, VCCI could collect only recommendations of Vietnamese businesses and hopes to receive contributions of foreign businesses so that the government could have an overall view of investment and business environment and adopt more appropriate policy.

 

Mr Loc called on closer cooperation between foreign business associations and VCCI to improve the enterprise law and investment environment, to exchange information and experiences on investment, business linkage, honouring businesses, and developing business culture and sport events to increase the ties between business communities. He also disclosed that twice a year, VCCI reports to the government activities of VCCI and business community to help the government adopt timely policy, especially during the current economic crisis. Therefore, Mr Loc proposed VCCI and foreign business community meet every three months or six months. In addition, VCCI and each foreign business association will have annual business forum to find solution to their problems.

 

He said that annual business forum between Vietnamese and foreign businesses and associations will facilitate their cooperation as well as dialogue with government officials and related authorities to solve their constraints.

Foreign associations have complained on complicated administrative formalities, mechanism, policy and legal documents. They requested the government to continue the reform on taxes and customs, especially regarding projects of supporting industries and infrastructure (power and water supply, transport, etc.)

 

Mr Choi Hyung Joon of Korean Business Association said that the complicated administrative formalities in Vietnam have delayed the land clearance and the construction of factories. Meanwhile, the Customs Office is not consistent in classifying commodities, making it difficult for businesses to import materials for production. Legal documents (mainly Decrees and Circulations) often changing and ambiguous can be interpreted in different ways causing difficulties for foreign businesses and creating loopholes for corruption.

 

Mr Patrick J Regis, Chairman of British Business Association in Vietnam proposed to establish a “one-stop shop” for administrative formalities. It will be an independent office connecting ministries and agencies to provide efficient service to foreign business communities. Reform should be implemented regardless of location or political interest. A representative office should also be established to provide consulting services to member companies on administrative formalities, partnership and dialogue with concerned ministries and agencies. They are also the official channel to receive feedback from business communities. The idea was shared by many participants.

Mr Andrew Yeo, Chairman of Singapore Business Association said that Vietnamese labour market is reducing in quality. Workers have to be retrained. Graduated students fail to meet the quality set by foreign investors. Cheap labour is no longer a comparative advantage of Vietnam. The demand of skilled workforce is most critical.

 

According to Mr Harry Beirnaert, Chairman of Belgium-Luxembourg Business Association, the education reform from primary school level is the key for sustainable development. In fact, businesses have difficulty in retraining the staff for lacking general knowledge.

 

For his part, Mr Ashok Sud, Vice-Chairman of Eurocham pointed out that the improvement of skilled labour should be based on 5-7 year plan and longer vision to determine sectors of high priority and fill the shortage of the workforce.