Effort for Enabling Business Environment

In an exclusive interview with Vietnam Business Forum, Ms. Huynh Thien Trang, Deputy Director of VCCI Mekong, shared her insights on this issue.

VCCI Mekong hosts a conference to connect Chinese businesses with those in the Mekong Delta 

What is your assessment of the business development in Can Tho City and the Mekong Delta?

Enterprises within Can Tho City and the Mekong Delta predominantly represent the small and medium-sized sector, specializing in agricultural and aquatic product processing, food, light industry, construction-real estate, trade and services. Characterized by a penchant for action over rhetoric, these businesses display a willingness to learn albeit at a measured pace. While their community involvement may be limit ed, their responsiveness in times of need is remarkable. Operating on a foundation of experiential knowledge rather than formal models, these enterprises embody a robust entrepreneurial spirit with a hint of cautiousness.

As the horizon unfolds, businesses face a compelling need to pivot their focus toward anticipatory measures, comprehending economic shifts, planning for investments, and staying abreast of policy changes. Aligning their strategies with market needs and leveraging inherent business advantages will be imperative. Internal resource evaluation for effective restructuring, comprehensive training programs for workforce adaptability, and embracing digitalization to harness technological advancements emerge as critical priorities. Undeniably, the pivotal role of human expertise and knowledge remains paramount in steering these enterprises toward sustained success.

Despite the good Provincial Competitiveness Index (PCI) of Can Tho City, investment inflows into the city remain modest. Apart from essential infrastructure, what other factors need to be addressed for better performance?

Throughout 2018 to 2022, Can Tho demonstrated commendable progress in its Provincial Competitiveness Index (PCI), even while facing national deceleration. In 2018, the city achieved a noteworthy score of 64.98 points, securing the 11th position out of 63 provinces and cities. By 2022, the score ascended to 66.94 points, marking an increase of 1.96 points. However, this positive trajectory was accompanied by a slide in rankings to No. 19 nationally. Despite maintaining a consistent presence within the Top 20, the city grapples with restrained investment inflows, attributing this challenge to three pivotal "bottlenecks": an unsynchronized transportation infrastructure system, a shortage of high-quality human resources, and a complex legal framework with intricate procedures.

The recent survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) in the first half of 2023 spotlighted four major concerns: overlapping legal documents, the need for enhanced transparency in business and cooperation conditions, planning and planning modification issues, and challenges in export management and support.

Charting a course forward, Can Tho must meticulously refine its investment attraction strategy, capitalizing on inherent strengths. Crucially, the city must address significant institutional and legal bottlenecks, fostering an environment conducive to sustained economic growth and heightened investment appeal.

Over the past two decades, what measures has VCCI Mekong taken to enhance cooperation with the government and proactively support businesses?

The pivotal role played by VCCI in the Mekong Delta has reached unprecedented heights, exemplified by several remarkable achievements:

Effective Regional Connectivity and Economic Development: Spearheading the economic research, the branch authored and disseminated the Mekong Delta Annual Economic Report 2020 and 2022, themed "Enhancing Capacity for Sustainable Development" and "Integrated Planning and Economic Transformation Model," respectively. These reports, the first and only of their kind for the economic region, served as crucial reference documents for legislative delegates, policy research, and planning initiatives. They were widely embraced by various ministries, agencies, and localities.

Competitiveness Enhancement: Swiftly engaging with the PCI Index introduced by VCCI, the branch conducted comprehensive assessments for both the Mekong Delta as a whole and individual provinces/cities. Organizing over 50 provincial workshops and 16 regional workshops on PCI analysis, evaluation, and recommendations, VCCI Mekong played a pivotal role in propelling many Mekong Delta provinces/cities into the nationwide Top 10.

VCCI Mekong has been working with Hau Giang, Bac Lieu and Ca Mau provinces since 2020 to launch the District and Department Competitiveness Index (DDCI). Hau Giang province has already completed its third year of consultation, and the report has been widely accepted by provincial and local leaders. The DDCI is planned to be released annually for five consecutive years, from 2021 to 2026. Bac Lieu and Ca Mau provinces have also planned to seek VCCI’s advice for a period of 2-3 years.

Trade, Investment Promotion, and International Cooperation: Serving as the chair of the Mekong Delta Promotion Centers Club (Mekong PC) for over a decade, VCCI has orchestrated numerous successful regional trade and investment promotion forums. Notably, the Vietnam-Japan Cultural and Trade Exchange Program, held in coordination with Mekong PC from 2016 to 2019, marked a transformative milestone in Vietnam-Japan trade cooperation. The event attracted 200 business people directly from Japan to Can Tho, a first in the Mekong Delta, fostering invaluable exchanges and insights into the regional investment landscape.

In a groundbreaking initiative in 2018, the Vietnam Chamber of Commerce and Industry (VCCI) launched the Mekong Delta Startup Network, distinguished as the first and exclusive regional startup network in the nation. Annually, the network orchestrates a comprehensive array of support activities tailored for regional startups, encompassing flagship initiatives such as hosting dynamic startup competitions, establishing an esteemed international advisory board, fostering a mentor club, inaugurating a creative startup center, and coordinating illuminating study tours to various localities within the country and across the globe. This collaborative endeavor boasts the wholehearted support and active participation of all 13 provinces and cities, with its members assuming lead roles as designated agencies by their respective provincial governments to champion and nurture startups.

In matters of membership and business affairs, VCCI Mekong has fervently driven membership development while organizing impactful events designed to disseminate critical information about economic landscapes, trade agreements, macroeconomic forecasts, and the cultivation of a robust business culture. The branch goes above and beyond, extending dedicated support to companies by championing policy advocacy, advocating for the establishment of business associations, actively participating in constructive business dialogues with local authorities, and steering the operations of the Business Association Council. This nuanced approach ensures that the branch is deeply entrenched in fostering comprehensive business support.

VCCI Mekong launches the Annual Mekong Delta Economic Report

The Politburo’s Resolution 59-NQ/TW dated August 5, 2020, on Can Tho City’s development, and Resolution 41-NQ/TW dated October 10, 2023, on building and promoting the role of entrepreneurs, have raised concerns about business development and the business environment. What are these concerns? How will VCCI Mekong fulfill its responsibility?

Resolution 41-NQ/TW aims to promote the role of Vietnamese entrepreneurs in the new era by setting out seven groups of consistent tasks and solutions. The resolution also emphasizes the importance of fostering the role of VCCI and organizations that represent entrepreneurs and enterprises.

With its role and functions, VCCI Mekong will: Listen, gather, reflect, and coordinate to resolve the thoughts, aspirations, and recommendations of enterprises and entrepreneurs; Organize training courses to foster knowledge for entrepreneurs and enterprises; Promote startup development, have policies to support women entrepreneurs and young entrepreneurs to develop; Gather, connect, cooperate, and support enterprises and entrepreneurs for sustainable development; Provide legal support and carry out policy recommendations for business development; Encourage and honor enterprises and entrepreneurs with outstanding achievements; Participate in relevant local agencies and sectors (like Labor Confederation, Department of Labor, Invalids and Social Affairs) in building harmonious labor relationships between employees and employers; and Mobilize entrepreneurs to adopt ethical standards and business culture among others.

Thank you very much!