Vietnam’s Prime Minister Nguyen Xuan Phuc has asked leaders of state agencies and local governments to provide immediate support to businesses at a time when the country is reopening up economic activities after weeks without local transmission of coronavirus.

Vietnam’s Prime Minister Nguyen Xuan Phuc at the meeting on May 9. Photo: VGP

“Relevant authorities need to tackle all problems hindering corporate operations instead of blaming each other, which wastes businesses' time,” the government leader said at an online dialogue with the business community on May 9.

As required by the PM, Vietnamese ministries must have solutions to difficulties stemming from the global pandemic that both domestic and foreign companies are facing.

The virtual meeting. Photo: VGP

The solutions should be based on recommendations by foreign business associations, foreign chambers of commerce and industry, prominent domestic and foreign companies, news reported at a live meeting with the participant of all 63 cities and provinces and dozens of foreign business associations.

In details, the Ministry of Finance proposed measures relating to reducion and waivin of taxes and fees. The State Bank of Vietnam offered aid packages with soft loans and preferential interest rates.

The Ministry of Labor, Invalids, and Social Affairs suggested direct supporting measures for both employers and employees. The Government Office, meanwhile, is tasked to speed up administration reform with a focus on online public services.

Minister of Planning and Investment (MPI) Nguyen Chi Dung. Photo: VGP

Sharing the same perspective, Minister of Planning and Investment (MPI) Nguyen Chi Dung said Vietnam, with good remarks gained through the fight against the pandemic, is considered a safe destination and reliable partner that gets ready to welcome inflows of foreign capital shift from other markets.

Chairman of Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc. Photo: VGP

Cutting administrative procedures: The first and foremost for businesses

Highlighting the importance of administration reform, MPI Minister Dung stressed that what businesses need the most is not only money but streamlined administrative procedures.

Simplified procedures, transparent policies, and integrity in public services would be the most needed for businesses, the minister said at the live broadcast conference.

Echoing Dung, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said businesses need mechanisms rather than money as they all understand the difficulties caused by the pandemic to the government.

He recommended three measures that help remove bottlenecks in the economy including shortened administrative procedures, boosting public investment, and instant supporting measures for the resumption of the economy.

Loc said that if drastic measures are all taken, the economy will rebound robustly with an amount of US$30 billion for public investment to be disbursed this year. The flow of money will support both local and foreign-invested enterprises and create jobs, Loc said, noting that Vietnam would absolutely achieve the annual growth rate of more than 5% if these problems are tackled.

The dialogue between the PM with businesses is the fourth of its kind since Phuc became prime minister in 2016.