The Vietnamese government must bear responsibility for a weak business community, therefore, as a facilitating state, it is key to minimize risks and costs for enterprises in doing businesses, particularly risks related to policies and administrative bureaucracy, according to Prime Minister Nguyen Xuan Phuc.

Prime Minister Nguyen Xuan Phuc at the meeting. Source: VGP.

“It is the government’s priority to remove bottlenecks to bolster development of the business sector, helping the community to grow both in number and quality,” said Phuc at a meeting between the government’s leader and the business community on December 23.

According to Phuc, the private sector is growing strongly with a number of national corporations becoming spearhead in some economic sectors. However, there are tens of thousands of enterprises suspending operation or subject to dissolution or going bankrupt every year.

Phuc requested enterprises to raise concern and report difficulties during their operations and business activities, including market access, credit access, administrative procedures, overlapping inspections, or the improper behavior of government agencies, among others.

At the meeting, Do Thien Anh Tuan, economist at Fulbright University Vietnam, said many provinces/cities are still insensible to difficulties and concerns of enterprises.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the agency has listed 20 overlappings in administrative procedures, which are restricting the development of enterprises.

Loc suggested the government take this issue to the National Assembly to remove these bottlenecks and open the doors for investment and development.

Business community key to Vietnam’s economic achievements

As the year of 2019 is coming to an end, PM Phuc said Vietnam’s GDP growth is on track to reach over 7%, making the country one of the fastest growing economies in Asia and the world.

Vietnam is also set to see trade turnover exceed the US$500-billion mark for the first time and a record high trade surplus of over US$9 billion.

The public debt to GDP ratio is estimated to be 56% in 2019, down from 64% in 2015.

In 2019, Vietnam continues to attract high volume of foreign investment capital at over US$32 billion, in which the disbursed amount is US$17.7 billion, the highest figure over the last few years.

Phuc attributed such achievements to the business community, stressing enterprises are the most important driving force for economic growth.

“A strong business community is an essential component of a prosperous country,” Phuc said.