On Monday, 16th October 2023, VBF had chance to attend the Prime Minister’s Conference with FDI business community in Hanoi. The event themed “Companionship for the Development”, which drew representatives from 15 associations and 180 FDI firms, follows the PM’s meeting with foreign investors held in April, affirming the Government’s special attention to and companionship with the business community and foreign investors.
Speaking at the event, on behalf of VBF, Mr. David Whitehead – VBF Board Member highlighted 3 major issues:
1. The global landscape in the first half of 2023 has presented a number of challenges and hurdles. In that context, the Government of Vietnam and the Prime Minister have closely worked with the Ministries and local authorities to propose flexible policies and implement adaptable solutions. The Government has established 12 Special Working Groups to enhance the responsibility of Ministries and local authorities to promptly resolve difficulties and obstacles for businesses. Thanks to those prompt actions, the macroeconomy remains secure and inflation is under control. The first half of 2023 witnessed an economic growth rate of 3.72%, which, though not exceptionally high, stands as a testament to Vietnam’s stability. Taking a constructive role, the Government has accompanied FDI businesses by enhancing improvements in the business investment environment; strengthening the implementation of policies to facilitate businesses in recovery, adaptation, and development; removing difficulties; sharing cost burdens with businesses, etc
2. The FDI community strongly believes that the Government and Prime Minister will continue to stabilise the macroeconomy, control inflation, and stabilize major balances of the economy, etc, which all help to create a stable environment for business operation and make Vietnam as an attractive investment destination. To create a conducive business environment, there is a need for an overall improvement in licensing procedures, clarity regarding access to land use, tax incentives, work permits procedures, and abolishment of unnecessary procedures and regulations on business conditions. This will help to attract large scale FDI investment in Vietnam, especially into new industries such as semiconductor and chip industry.
3. ESG (Environment – Social – Governance) has become the global trend in recent years and a fundamental shift in how businesses and investors approach sustainability, responsibility, and governance. Understanding the role of ESG as a significant tool to support the implementation of the governments’ net-zero plans, VBF is in the process of conducting an ESG survey among the VBF business community with the aim to identify businesses’ interests and needs to effectively implement ESG initiatives in Vietnam. It’s expected that the data-driven insights obtained from the survey will help the Government of Vietnam to make informed decisions, regulate effectively, incentivize sustainable practices, and engage stakeholders in their efforts to achieve net-zero target by 2050 and towards sustainable development. VBF plans to share the survey report to the Government and the Prime Minister by end of this year.
In appreciation of this dialogue opportunity with the Prime Minister and Ministries’ leaders, VBF vowed to stand ready to work with the Government of Vietnam to move toward progressive economic development in the future.