The Party, State and People Advocate and Demonstrate Confidence in Vietnamese Entrepreneurs

Mr. Nguyen Chi Dung

Minister of Planning and Investment

Vietnam has some outstanding advantages in terms of macroeconomic stability, improved business investment climate and reinforced confidence of domestic and international investors, according to reputable international agencies and experts. However, the country also faces many potential risks and challenges, such as the uncertainty of economic growth and fiscal and monetary policies in major countries, the pressure on the output market and input costs of businesses, and the increasing use of trade defense measures by other countries. As an advisory to the Government, the Ministry of Planning and Investment proposes the following directions and solutions:

To quickly remove bottlenecks and legal barriers that hinder business and investment activities of enterprises. It is necessary to conduct institutional reforms, lift legal barriers and create a favorable business and investment environment as soon as possible. In particular, it is required to address the inadequacies that have been repeatedly reported by companies, such as regulations on fire prevention and specialized inspection. It is essential to amend laws to eliminate obstacles and bottlenecks and introduce simplified processes that can be implemented immediately.

To further support companies to reduce cost burdens, increase access to capital and state support resources; to urgently solve difficulties in VAT refund for businesses; to review and reduce unreasonable costs in business practices; to allocate credit capital for enterprises, especially for priority areas encouraged for development; to implement solutions to reduce costs, lower deposit interest rates, and ease lending interest rates in both VND and USD; to actively disburse approved credit packages to support businesses; to urgently issue regulations on controlled testing mechanism in the banking sector (Fintech).

To support businesses to access new markets, boost exports and promote domestic consumption; to actively assist the business community to take advantage of FTA commitments, especially in new-generation FTAs, to boost exports; to expand the scope of unilateral visa exemption policy in the near future; to deploy solutions to increase international flight routes to Vietnam.

To support workers, create jobs and ensure social security; to quickly and effectively implement support policies for trade members and workers whose working hours are reduced and labor contracts are terminated by reduced orders as per Resolution 06/NQ-TLD.

To enforce policies and solutions to support companies in digital transformation and innovation, and improve institutions to encourage them to apply sustainable business models and new industries and develop digital economy, green economy, and circular economy.

Mr. Dao Ngoc Dung

Minister of Labor, Invalids and Social Affairs

At the 8th meeting of the Party Central Committee, businesses were involved in two out of three breakthrough stages in social policy. The first stage aimed to establish a flexible, modern, and integrated labor market. The second stage aimed to eradicate temporary and rundown houses for people in the next five years, as this is a basic requirement of the people under the Constitution. Moreover, the Government has committed to providing one million social housing units for workers. Stable workers are vital for a thriving enterprise.

We will also revise the Social Insurance Law and the Employment Law to offer the best conditions for businesses and workers to grow together. Various support policies for businesses and employees will be enacted.

Vietnam needs to leverage and foster its golden population period by creating a national policy framework that curbs population aging and enlarges the population size, especially the birth rate, to avoid future population aging and educate high-quality human resources. Along with digital and green transformations, human resources need to shift towards emphasizing high quality.

Concurrently, comprehensive reform of salary policy in the business sector will be carried out. The state will only interfere in the minimum wage as a reference for businesses and workers to negotiate.

Mr. Dao Minh Tu

Deputy Governor of the State Bank

Thanks to the effective implementation and efforts of the State Bank of Vietnam and the banking industry, outstanding credit debt across the economy increased by nearly 7% by September 29, 2023 (compared to 11.05% in the same period in 2022). The positive growth rate reached more than 1% in September and the first days of October. The total outstanding debt of the whole economy is about VND13 quadrillion. Since the beginning of the year, an additional supply of nearly VND 600 trillion has been provided to businesses to support the troubled bond market.

In the coming time, the State Bank will continue to manage monetary policy to ensure stability. The exchange rate tool will ensure stability, while interest rates will be managed in a stable and gradually decreasing direction, in line with inflation developments and economic growth. This will prevent speculation from increasing the exchange rate, prices, use of resources, and ensure consistent exchange rate management. Second, to continue operating interest rates in a gradually decreasing direction, the State Bank instructs commercial banks to save costs and use all resources to share difficulties in reducing interest rates for businesses. Third is to remove procedural conditions for accessing credit. However, this problem has two sides because failing to ensure minimum guarantees in credit conditions can lead to unsafe and unhealthy credit institutions and national financial security. Therefore, the State Bank’s view is to ensure capital safety but also create favorable conditions for credit growth.

Mr. Cao Anh Tuan

Deputy Minister of Finance

To support taxes, fees, charges, and land rent, various solutions with high value and broad scope have been executed and are ongoing. These solutions have gained the consent, backing, and recognition of the business community and the public, helping them cope with challenges and maintain production and business activities. This has led to positive outcomes for socio-economic development. In the coming time, the Ministry of Finance will keep a close eye on the actual situation and devise solutions for 2024 following the direction of the Standing Government and the effective execution of key tasks that have been issued. These solutions include continuing to evaluate the reduction of the environmental protection tax rate for 2023, reviewing and reporting to the Government on the possibility of lowering the value-added tax rate for 2023, cutting import and export tax rates, supporting domestic production and business, decreasing some fees and charges, and promoting the use of online public services.

The Ministry of Finance will also pursue reforms in other areas such as enhancing institutions, increasing the effectiveness and efficiency of the apparatus, and improving administrative procedures in a more comprehensive and effective way. It will foster healthy financial sectors, especially in tax and customs, to ease and lower costs for businesses and people. This will boost the business environment and contribute to national competitiveness.

Mr. Nguyen Van Than

Chairman of Vietnam Association of Small and Medium Enterprises

October 13 this year was the most exciting day for me, and I have three reasons for that. First, as General Secretary Nguyen Phu Trong said, our country’s stature in the world and Vietnam’s potential and international position have never been as high as they are today. Second, Resolution 41 of the Politburo issued on October 10, 2023 recognizes the contribution of the entrepreneur force to the national construction and development. Third, in the context of global economic integration, we have faced strong impacts from the world economy. However, thanks to the efforts of the Government leaders, especially the Prime Minister, and the solid support of the business community of all sizes, the country’s GDP grew by 4.24%. This is a remarkable achievement. Other indicators also improved. The public investment disbursement increased by VND110 trillion from the previous year, significantly boosting GDP growth and unlocking resources. The Prime Minister and cabinet officials have also focused on resolving 12 major projects that were previously wasteful and inefficient. This is also a great joy because these projects have finally been freed from their deadlock.

I also have two small suggestions. The first one is about the night economy. We have piloted it in two cities and it is related to tourism. We should not be afraid of the negative consequences of the night economy because it will increase GDP and also address import-export issues.

The second one is about equality and transparency between businesses and authorities. For example, a company will be fined if it pays VAT late, but authorities will not be fined if they refund VAT late. This is unfair and unreasonable. Both sides should be accountable for their actions, not only the business side. Authorities should also be penalized for their delays.

Mr. Tran Ba Duong

Chairman of the Board of Directors of Truong Hai Group (Thaco)

As a businessman with over 40 years of experience in the market, I always appreciate the Party and the State for their support for the entrepreneurial force. I am very impressed by Resolution 41 of the Politburo on building and enhancing the role of Vietnamese entrepreneurs in the new era.

The entrepreneur force is very enthusiastic as the new resolution confirms the role and position of the entrepreneur force and designates it as one of the key forces to advance the cause of industrialization and modernization of the country. The entrepreneur force not only works to build and develop a self-reliant and autonomous economy, but also contributes to ensuring national defense and security. Moreover, it also plays a vital role in economic diplomacy and international integration.

The resolution also stipulates that entrepreneurs in the new era must take business ethics and business culture as the core of their actions, uphold the rule of law, and demonstrate patriotism, nationalism, and dedication.

As a businessman who is leading and running a giant multi-industry corporation in the country, I commit to continuing to study and implement the spirit of the resolution into my entrepreneurial life and into the role and position of my companies for sustainable development. I will carry out specific tasks of the Resolution and strive to expand my leadership in some key areas, aiming for a significant position in the global value chain, industrial and agricultural value chains based on green economic models and circular economy.

The resolution also asserts that promoting the role of entrepreneurs, along with developing entrepreneurs and enterprises, is the responsibility of the whole political system. I acknowledge that it is also the responsibility of each entrepreneur and each business. We compete and cooperate with each other in an integrated environment to enhance our own business capacity and to build a strong business community in the context of international competition.

Mr. Truong Gia Binh

Chairman of the Board of Directors of FPT Corporation

On this occasion, as a businessman, I would like to express my sincere gratitude to the Party, the Government, the National Assembly, and the central and local agencies for creating a peaceful life for us in the past 50 years and helping us live in a harmonious society. Vietnam has signed 16 new-generation free trade agreements (FTAs) and plans to sign three more FTAs. This is a great opportunity for companies to do business with other countries in a free and creative environment that fosters their capabilities. This is a heartfelt thank-you from the business community and millions of workers to the authorities at all levels.

If the government values enterprises, it should value them more. If it cares for them, it should care for them more. If it helps them overcome difficulties, it should help them more. If it reduces taxes and fees, it should reduce them more and longer. With that sentiment, Vietnamese businesses will be like a flock of Vietnamese birds that will soar in the sky and lead Vietnam to its desired position and status - a strong and happy Vietnam.

Ms. Thai Huong

Chairwoman of TH Group's Strategy Council, Chairwoman of the Vietnam Women's Business Association

On this occasion, I would like to offer some recommendations to the Government. We hope that some laws will be enacted soon, such as the revised Land Law, Water Resources Law and Housing Law, for businesses in general and women entrepreneurs in particular to follow and operate professionally and to bring common benefits to the community towards sustainable development. Because community health is the foundation of the nation’s strength, the Government needs to instruct and delegate responsibility to ministries, agencies and branches, including the Ministry of Health, to establish a basic standard for the Nutrition Law, especially the Law on Nutrition at School, and submit it to the National Assembly. And finally, we suggest that the Party, the State and the Government adopt flexible policies and mechanisms to support and promote the role of Vietnamese women entrepreneurs as the country’s treasure. Please provide them with a rose garden at the end of their journey so that they can overcome every obstacle and challenge on their way to success.

Mr. Pham Dinh Doan

Chairman of Phu Thai Group

In the past, Vietnam’s large private economic model was not fully developed. However, the country now faces great opportunities that bring along many significant bilateral cooperation programs. Vietnam has entered into many free trade agreements and has a more diverse range of strategic partners. Therefore, this is an opportune time for the Government to consider establishing state-owned and private corporations. All public or private corporations have the responsibility to execute and achieve the national strategy. Of course, both state and private corporations must be subject to state oversight to ensure fair development.

Vietnamese businesspeople and citizens are no less courageous than any other nation in the world. They have not only the ambition to enrich themselves but also the aspiration to make the country wealthy and thriving, creating economic power and resources for the nation. Leading businesses will shape Vietnam’s position in the global arena. A robust, sustainable business community with global competitiveness and visionary Vietnamese entrepreneurs with strong national pride are essential prerequisites for Vietnam to become an independent, self-reliant, prosperous country.

Ms. Nguyen Thi Nga

Chairwoman of the Board of Directors of BRG Group, Vice Chair of the Vietnam Private Entrepreneurs’ Association

We express our gratitude to the Party for issuing Resolution 41, which confirms the role of entrepreneurs and expresses the view of not criminalizing economic relations. On behalf of the Vietnam Private Entrepreneurs’ Association and the Vietnam Women Business Association, we extend our thanks to the Prime Minister for signing a realistic decision to reduce land rent by 30%. With guidance from the Ministry of Finance and the General Department of Taxation, we can conveniently access this benefit.

Although the bond market and real estate market have been unstable and fluctuating lately, the Government has taken measures to address these issues for real estate businesses and the bond market. Without these measures, hundreds of businesses could face difficulties, and hundreds of thousands of people could be affected. We sincerely appreciate the Prime Minister and ministries for their efforts. On this occasion, we hope that the Government will always be our backup when we encounter challenges. We will recover and prosper. We will stand up and cooperate with the Government with our utmost efforts.