Policy consistency, predictability critical to realise business opportunities

Policy consistency, predictability critical to realise business opportunities

The Government creates room for development through improved institutions, but businesses must translate that into investment, production, new products, employment and added value.

Production at Long Hải Company in Hải Phòng. Government policy and pioneering businesses are both essential to achieving a new phase of economic growth. — VNA/VNS Photo Trần Việt

Việt Nam needs to ensure greater policy stability and predictability to improve its business environment, using effective reforms to help companies turn opportunities into investment, production and jobs, Deputy Prime Minister Phạm Gia Túc said at an October 11 ceremony honouring 100 outstanding Vietnamese entrepreneurs.

The ceremony was held by the Vietnam Chamber of Commerce and Industry (VCCI) ahead of Vietnamese Entrepreneurs' Day on October 13. 

At the event, Túc called for efforts to translate support for businesses into concrete results, while urging faster resolution of bottlenecks and further reforms to improve the investment climate.

“The Government must create the most favourable environment possible, which is transparent, fair and secure, so businesses can invest, operate, innovate and grow with confidence,” he said.

The Deputy PM also called for better access to capital, land, technology, data and skilled labour, as well as stronger links between State-owned, private and foreign-invested companies, to create more value in Việt Nam.

Túc said science and technology, innovation, digitalisation, green transformation and international integration must become key drivers of productivity and competitiveness as Việt Nam pursues its goal of sustained double-digit economic growth.

He urged domestic companies to move beyond relying on low costs and labour advantages to develop stronger management capabilities, build brands, master technologies and capture higher-value segments of regional and global supply chains.

At a forum held on the same day, VCCI Chairman Hồ Sỹ Hùng said that Government policy and pioneering businesses are both essential to achieving a new phase of economic growth.

The Government creates room for development through improved institutions, but businesses must translate that into investment, production, new products, employment and added value, he said.

Over the past two years, Việt Nam has accelerated policy reforms, adopted important resolutions, introduced new laws and mechanisms, reorganised Government agencies and expanded decentralisation while simplifying administrative procedures, he said.

These changes have helped businesses lower costs, speed up capital turnover and improve competitiveness, according to Hùng.

However, gaps remain between policy decisions and implementation, as businesses still face very different experiences depending on the locality, he said.

“While the previous phase focused heavily on institutional breakthroughs, the next phase must place greater emphasis on breakthroughs in implementation,” Hùng noted.

Frequent regulatory changes without sufficient time for businesses to adapt, inconsistencies between legal documents, unclear processing deadlines and prolonged waits for investment decisions can all impose costs and cause businesses to miss market opportunities.

Hùng said reforms should therefore focus on improving implementation and allowing businesses to make investments with greater confidence.

As Việt Nam pursues ambitious development targets, the Government must create a more favourable environment for long-term investment and innovation, while businesses must turn policy opportunities into competitive strengths, Hùng said.

Nguyễn Xuân Thọ, deputy director of the Ministry of Finance’s Department of Private Enterprise and Collective Economy Development, said the Government has been working to address difficulties for companies as part of efforts to improve the business environment, unlock resources and promote economic growth.

Meanwhile, Nguyễn Đức Hiển, deputy head of the Central Commission for Policies and Strategies, said Việt Nam needs to renew growth drivers while accelerating breakthroughs in science and technology, innovation and digital transformation.

This would allow it to restructure the economy and strengthen its position in global value chains.

Vietnamese Entrepreneurs’ Day should not only celebrate past achievements, but also highlight the need for businesses to expand their competitiveness, master technologies and create sustainable value, Hiển said. 

Bizhub