Foreign businesses expect Vietnam to act immediately to avoid falling behind

The FDI sector is the main driver of Binh Duong's export growth. Photo: Tieu My

Four foreign business associations in Vietnam including the American Chamber of Commerce (AmCham), European Chamber of Commerce (EuroCham), Korean Chamber of Commerce (Kocham), and US-ASEAN Business Council have just submitted a proposal to Prime Minister Pham Minh Chinh and Deputy Prime Ministers on the strategic proposal "Pandemic prevention and control in each region" to restore safe production and business activities in the new anti-pandemic status.

In the proposal, foreign investors frankly acknowledged: “It is important for Vietnam to act now to maintain its regional and global competitiveness and not fall behind in economic recovery.”

Therefore, the foreign business associations in Vietnam emphasized their commitment to support the Government's "dual goals" as well as support the Prime Minister's strategic policy orientation of adapting to "live with the virus safely”, to reopen the economy, facilitate the economy to recover and establish a “new normal”.

"We are optimistic about Vietnam's future. We believe in the strength and resilience of the Vietnamese people and economy. We commit and invest in the future with Vietnam," stated the proposal.

However, according to the four associations, businesses need to have a clear roadmap for reopening now.

Notably, the survey conducted by these four associations showed at least 20% of members in the manufacturing sector have moved some production activities to another country, while many others were wondering about production conversion. Because it is difficult to roll back once production has been changed, especially when the production line has been expanded in another place.

According to the foreign business community, Vietnam is missing investment opportunities that may not return. Investment will not increase without a clear plan for reopening and recovery, and new potential investors cannot come without reasonable policies for the entry of foreigners.

“Vietnam will miss a great opportunity to take advantage of supply chain diversification away from China if it cannot prove this is a reliable alternative. To remain its regional and global competitiveness, including against Malaysia, Indonesia, and Thailand, Vietnam must act now,” said the associations.

The associations affirmed that vaccines were the key for a safe reopening and economic recovery. Therefore, priority should be given to certain groups such as healthcare workers, the elderly, people with underlying diseases, and production and delivery staff, for both the first and second dose.

They also agreed on the need for an application or tracking system coordinated across ministries/sectors and provinces to allow consistent identification, access, and travel.

The administrative system needs to accept enterprises’ digital documents to both facilitate trade and investment during the pandemic, and enable innovation and growth of the digital economy.

"We hope that customs clearance can be accelerated, both to facilitate production input and exports, and to ensure timely arrival of pharmaceutical products and lifesaving medical equipment," stated the proposal.

According to the associations, food security is paramount but has been disrupted by social distancing, so restaurants should be seen as an important partner to ensure food security and jobs.

Additionally, the four associations believed that there should be coordination of policies across the country, including transportation, availability of rapid tests, and policies to isolate and remove F0 rapidly to ensure worker safety and minimize impacts on businesses. The government should plan for a safe reopening to tourism.