Prime Minister: Building a healthy, stable and sustainable business investment ecosystem

On the morning of October 16, at the Government Headquarters, the Prime Minister's Conference with the foreign-invested enterprise community in Vietnam (FDI) with the theme "Accompanying and Developing" was held. Prime Minister Pham Minh Chinh chaired the Conference.

This is the next activity after the Conference "Prime Minister meets with foreign investors" held in April 2023, affirming the consistent policies and guidelines of the Party and State of Vietnam towards the foreign investment sector; demonstrating the Government's interest and companionship with the business community and foreign investors.

Prime Minister Pham Minh Chinh speaks at the Prime Minister's Conference with foreign-invested enterprises. Photo: Duong Giang/VNA

Also attending were Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung; Minister of Industry and Trade Nguyen Hong Dien; leaders of central ministries and branches; representatives of 15 associations and 180 foreign-invested enterprises in Vietnam.

FDI enterprises continue to expand investment and business in Vietnam

In the context of the world situation continuing to evolve rapidly and complicatedly, with many unprecedented issues exceeding forecasts in the first 9 months of 2023, Vietnam's socio-economic situation still achieved outstanding and remarkable results. The macro-economy was maintained stable; growth was promoted. Inflation was controlled; major balances of the economy were ensured...

Inflation generally tends to decrease in the context of high world inflation, the average CPI in the first 9 months increased by 3.16%; growth recovered positively, the following quarter was higher than the previous quarter, the total increase in the first 9 months was 4.24%. State budget revenue in the first 9 months reached 75.5% of the yearly estimate; while tax, fee, charge, land rent exemption, reduction and extension were VND 152.5 trillion. Exports in September increased by 4.6%, imports increased by 2.6% over the same period. In the first 9 months, the trade surplus was 21.68 billion USD. Energy security and food security were ensured.

Notably, the total registered FDI capital in the first 9 months reached 20.21 billion USD, up 7.7% over the same period. The realized FDI capital reached 15.91 billion USD, up 2.2%. By the end of September 2023, 144 countries and territories had invested in Vietnam with more than 38,300 valid projects, with a total investment capital of more than 455 billion USD, creating jobs and income for millions of workers.

Mr. Chung Wonseok, General Director of Hana Micron Vina Vietnam Company, speaks. Photo: Duong Giang/VNA

Many prestigious international organizations highly appreciate the situation and prospects of Vietnam's economy. In particular, the Heritage Foundation ranked Vietnam's 2023 Economic Freedom Index at 61.8 points, an increase of 12 points compared to 2022. Financial Times magazine commented that Vietnam is "one of the 7 outstanding economies in a volatile world". Vietnam's national brand grew the fastest in the world in the period 2019 - 2022, reaching 431 billion USD in 2022.

In a lively discussion at the Conference, 19 delegates, representatives of associations and foreign-invested enterprises in Vietnam, said that in recent times, in the face of difficulties and challenges, promoting the spirit of accompanying enterprises, the Government and ministries, branches and localities of Vietnam have created legal conditions, proactively removed bottlenecks and barriers to help enterprises invest and do business smoothly; supported enterprises to access new markets, boost exports and promote domestic consumption; promoted administrative procedure reform, improved the investment environment, shortened the time for enterprises to complete procedures; prepared necessary conditions to attract investment such as clean land, infrastructure, energy, labor, etc.

Mr. Gaur Dattatreya, CEO of Bosch Global Software Technologies, speaks. Photo: Duong Giang/VNA

Associations and foreign-invested enterprises in Vietnam committed to working with Vietnam to promote investment and business according to Vietnam's priorities such as development based on science and technology, innovation, digital economy, circular economy, sharing economy, green development, sustainability, and climate change response. Delegates offered advice on adaptation, rapid recovery, and sustainable development; proposed solutions to seize opportunities, overcome challenges, cooperate in development, and share investment plans and expand investment in a number of fields in Vietnam.

Chairman of the American Chamber of Commerce in Vietnam (AmCham) John Rockhold said that the US-Vietnam relationship has been upgraded. This is an important time, a great opportunity to improve the policy framework and investment environment to attract new investment flows, while supporting the development of investors and businesses currently operating in Vietnam.

AmCham will continue to work with the Vietnamese Government to identify and remove bottlenecks, while helping the Government build a legal environment in accordance with global standards; hope that the Government will continue to reform regulations to avoid applying procedures that create additional administrative burdens for businesses; help businesses access energy supplies and access to renewable energy...

Mr. Ng Boon Teck, representative of the Singapore Business Association in Vietnam, hopes that the Government will continue to have financial mechanisms, tax policies, research on establishing electricity connection points, etc. to help Singaporean businesses build logistics "highways" and strengthen the supply chain in Vietnam in an environmentally friendly direction.

Swire Group's Chief Representative in Vietnam, Josh Williams, expressed his belief in sustainable development in Vietnam and in policies on emission reduction to achieve the netzero target by 2050. Swire Group is committed to 100% of packaging products in Vietnam being reusable and will strive to contribute to Vietnam's netzero target by 2050.

Chairman of the Board of Directors and General Director of DEEPC Industrial Park Complex Bruno Jaspert suggested that the Prime Minister and the Government of Vietnam consider introducing a policy to encourage Eco-Industrial Parks by applying longer land lease terms for industrial parks that meet those standards; at the same time, applying special taxes to parks that cannot or do not want to comply and using this revenue to build a fund for sustainable future development...

The representative of the Japan External Trade Organization (JETRO) said that the economy is showing signs of growth after several difficult years; in which, areas such as digitalization and information technology are growing steadily. Vietnam needs to focus on the manufacturing industry and innovation; at the same time, he believes that Vietnam will become one of the most attractive countries in the digital space...

Vietnamese Government accompanies businesses for mutual development

Prime Minister Pham Minh Chinh speaks at the Prime Minister's Conference with foreign-invested enterprises. Photo: Duong Giang/VNA

After the representatives of the leaders of the ministries and branches spoke and answered the opinions of the associations and foreign enterprises, concluding the Conference, Prime Minister Pham Minh Chinh acknowledged the enthusiastic, profound and responsible opinions of the delegates; requested the Ministry of Planning and Investment, relevant ministries and branches to seriously absorb the opinions of enterprises and investors; proactively handle immediately, have clear and specific written responses to proposals and recommendations within their authority or promptly synthesize and report to competent authorities according to regulations.

On behalf of the Party and State leaders, the Prime Minister expressed his gratitude to foreign enterprises for investing in Vietnam; always accompanying and sharing with Vietnam to overcome difficulties and challenges, taking advantage of development opportunities; accompanying Vietnam to build an independent and self-reliant economy associated with proactive, active international integration, deeply, practically and effectively; in the context of many difficulties and challenges, investors are still committed to expanding investment in production and business in Vietnam.

The Prime Minister emphasized that the Vietnamese Government is committed to always protecting the legitimate rights and interests of businesses in any case; always accompanying businesses, overcoming difficulties and challenges, seizing opportunities with businesses to develop stably and sustainably in Vietnam, in the spirit of "harmonious benefits, shared risks"; not criminalizing economic and civil relations, but protecting those who do the right thing, handling those who do the wrong thing to protect a healthy, stable and sustainable investment and business ecosystem.

Informing the Conference on 9 important foundations of Vietnam's economy, politics, society, defense, security, and foreign affairs so that businesses can feel secure in investing in production and doing business smoothly, stably, and sustainably, the Prime Minister said that Vietnam's economy continues to be a bright spot in the not-so-bright picture of the global economy. The important results achieved are thanks to the leadership of the Communist Party of Vietnam, headed by General Secretary Nguyen Phu Trong, the efforts of the entire political system, the support of the people and businesses, especially the effective support and assistance of the international community, including foreign invested enterprises.

The Prime Minister affirmed that the Party and State of Vietnam pay special attention to and clearly identify that the foreign-invested economic sector is an important component of the Vietnamese economy, and is encouraged and facilitated for long-term development, cooperation and healthy competition with other economic sectors. The State respects and protects the legitimate and legal rights and interests of investors.

Foreign businesses attend the conference. Photo: Duong Giang/VNA

Informing the business community about Vietnam's major development orientations in the coming time, the Prime Minister said that Vietnam is determined and persistent in its goals of stabilizing the macro economy, controlling inflation, promoting growth, ensuring major balances of the economy; implementing a proactive, flexible, timely and effective monetary policy; closely and synchronously coordinating with a reasonable, focused and key expansionary fiscal policy.

Vietnam focuses on promoting three growth drivers: investment, export and consumption; creating clear changes in implementing strategic breakthroughs in institutions, human resources, and infrastructure systems. Special attention is paid to creating growth drivers, especially emerging industries such as semiconductors, artificial intelligence (AI), big data, e-commerce, green energy, green economic development, circular economy, sharing economy, etc.

Regarding investment attraction orientation, the Prime Minister said that Vietnam continues to create favorable conditions, build a safe, transparent, and highly competitive investment and business environment so that the business community and investors, including foreign investors, can feel secure in long-term investment in Vietnam. In particular, Vietnam advocates selective investment attraction and cooperation, taking quality, efficiency, technology, and environmental protection as the main evaluation criteria; commits to creating the best business environment towards OECD standards.

The Prime Minister requested ministries, branches and localities to continue to seriously and effectively implement the Party's guidelines and policies, the State's policies and laws, especially Resolution No. 41-NQ/TW of the Politburo on building and promoting the role of Vietnamese entrepreneurs in the new period, creating a favorable investment and business environment with the motto "Taking people and enterprises as the center, the subject, the goal, the driving force and the resource for development".

Along with that, continue to review, amend, supplement and perfect foreign investment cooperation policies in line with practical situations, with high competitiveness, international integration, in line with the orientation, planning and requirements of national development; focus on improving the investment and business environment and creating favorable conditions, reducing costs for enterprises; effectively implementing solutions for debt restructuring, debt extension, interest rate exemption and reduction; extension, postponement, exemption and reduction of taxes, fees, charges, land rents, etc.

In particular, ministries, branches and localities seriously listen to recommendations and proposals from businesses and investors, including foreign investors, with a spirit of openness and sharing; on that basis, promptly take effective measures to handle, especially practical difficulties and problems, with the motto "don't say no, don't say difficult, don't say yes but don't do"; promote public-private cooperation, clear and effectively use all resources for development, including developing a strategic infrastructure system associated with institutional improvement and training of high-quality human resources; strengthen the work of grasping the situation, especially regarding fiscal and monetary policies, forecasting closely to reality to have appropriate, flexible and timely policy responses.

Foreign businesses attend the conference. Photo: Duong Giang/VNA

On this occasion, Prime Minister Pham Minh Chinh requested the business community and investors to continue researching and building long-term, sustainable and environmentally friendly business strategies; proactively innovating production and business models, restructuring enterprises associated with development according to green economy, digital economy, circular economy, knowledge economy, and climate change response.

Enterprises implement well the business culture, regimes and policies towards employees and accompany the authorities at all levels, for the benefit of enterprises, investors and contribute to the State and people of Vietnam.

Associations need to perform their functions and tasks well; promptly inform and report on problems and difficulties of members, enterprises and investors in the process of investment and business activities in Vietnam; promptly recommend and propose appropriate policies and laws.

The Prime Minister affirmed that he hopes and believes that foreign enterprises and investors will continue to show affection, trust, and cooperate closely, upholding the spirit of “harmonized benefits, shared risks; harmonized interests between the State, people, and enterprises”, “what is said must be done; what is committed must be implemented effectively”, accompanying and developing sustainably and effectively with Vietnam. The success of investors is also the success of Vietnam; all win, leaving no one behind.

According to VNA/Tin Tuc Newspaper

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