Economic growth is strong but administrative procedures are still a barrier

DNVN - Although Vietnam has achieved remarkable economic achievements, improving the business environment with transparency and stability is still an urgent problem to maintain and enhance its attractiveness to international investors.

At the workshop “Vietnam's economic information in the third quarter and the socio-economic impact of special consumption tax policies on industries” organized by the European Chamber of Commerce in Vietnam (EuroCham) on November 18, experts gave many positive assessments of Vietnam's economic recovery in 2024.

Businesses want a more transparent and stable business investment environment.

However, experts also emphasized that challenges in improving the business environment, such as lack of consistency and transparency in policies, are major barriers to investment capital flows, especially from FDI enterprises.

Strong growth but lack of sustainability

According to Dr. Nguyen Quoc Viet - Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR), Vietnam recorded an impressive GDP growth of 6.82% in the first 9 months of 2024. Inflation was well controlled with the CPI in the third quarter increasing by 3.48%, lower than in the first half of the year. Import-export turnover also reached 578.5 billion USD, up 16.3% over the same period last year, of which the trade surplus reached 20.8 billion USD.

However, Mr. Viet said that the economy still depends too much on the manufacturing and processing industry, while other sectors such as agriculture and services lack breakthroughs.

“Growth is good, but we need to focus more on quality and sustainability, instead of relying only on short-term factors,” Mr. Viet commented.

EuroCham’s report also showed that the Business Confidence Index (BCI) in the third quarter of 2024 increased to 52 points, reflecting positive signals from the market. However, many businesses still expressed concerns about the complexity of administrative procedures and the lack of synchronization in the application of new policies, causing difficulties for business and investment activities.

Dr. Nguyen Minh Thao - Head of the Department of Business Environment and Competitiveness, Central Institute for Economic Management (CIEM), warned that external instability factors such as geopolitical conflicts, global inflation and exchange rate fluctuations could affect Vietnam's economy.

Ms. Thao emphasized: “We need to build stronger internal strength to minimize external risks.”

Solutions from transparent and consistent policies

To attract foreign investment more effectively, experts say Vietnam needs to focus on improving policies and administrative procedures.

Dr. Nguyen Minh Thao commented that policy stability is the decisive factor in investor confidence. However, current reality shows that many regulations change too quickly and lack specific guidance, making it difficult for businesses to comply.

Further analysis, Dr. Nguyen Quoc Viet affirmed that Vietnam needs to focus on areas that are global trends such as green growth, high technology and sustainable consumption. Mr. Viet gave examples of regulations related to renewable energy and export standards to the EU market.

“If policies are not consistent, businesses will not be able to meet international requirements, thereby losing competitive opportunities,” said Mr. Viet.

According to Ms. Dinh Thi Quynh Van - Chairman of PwC Vietnam, shared a similar perspective when talking about large projects such as BOT energy and LNG. According to Ms. Van, the process of obtaining project approval in Vietnam can last for decades, while in many other countries, the processing time is only 6 to 12 months. Ms. Van called for stronger coordination between management agencies to shorten the time and improve the effectiveness of policy implementation.

EuroCham representatives also emphasized that the development of renewable energy not only brings economic benefits but also helps Vietnam become a more attractive destination for businesses with a sense of sustainable development. Many international corporations are currently prioritizing markets with low and stable energy costs, combined with strong support policies.

In general, experts agree that Vietnam needs to maintain its current growth momentum by building a more transparent, stable and competitive business environment. This requires strong commitment from management agencies and synchronous cooperation between ministries and sectors to remove existing difficulties.

Improving the business environment is not only a short-term factor but also a long-term strategy for Vietnam to rise to a higher position on the world economic map. With determination and the right direction, Vietnam can completely create an attractive investment environment, ensuring both sustainable development and meeting the needs of international integration.

Duy Khanh

Source: https://doanhnghiepvn.vn/kinh-te/kinh-te-tang-truong-manh-nhung-thu-tuc-hanh-chinh-van-la-rao-can/20241119090713063