Must-win battles for Viet Nam to make economic miracle

The Chairman made the suggestions during a recent dialogue of the European business community with Vietnamese Prime Minister Pham Minh Chinh held yesterday in Ha Noi.

He said that Europe and Viet Nam have fostered strong ties since the establishment of diplomatic relations in 1990, and the progress Viet Nam has achieved since then is truly remarkable.

"Over the past eight years living in Hai Phong, I have witnessed first-hand how this once-quaint river port town has transformed into a key logistics and manufacturing hub for the north – just one example of Viet Nam's broader economic transformation," Bruno Jaspaert said.

Four must-win battles

European businesses are honored to contribute to this success, but there is potential to do even more, the Chairman said.

In order to attract more European investors, we believe it is necessary to highlight some must win battles for the future ahead. 

Firstly, Bruno Jaspaert suggested the Government strengthen the legal framework – The foundation for sustainable growth.

The Chairman recalled Typhoon Yagi, the strongest storm to hit Viet Nam in three decades last year. However, no houses in Hai Phong collapsed.

"The reason why they kept standing is because they were built on solid foundations. The same applies to this country of yours," he added.

The foundations of any state and economy are its laws. All investors crave stability and transparency, especially regarding the laws governing and impacting their business. 

For that reason alone, it is crucial that Viet Nam establish a transparent and stable legal framework to become a top investment destination. If we get the foundations right, building a house becomes much easier.

Secondly, Bruno Jaspaert proposed the Government reduce trade barriers. 

The EVFTA has already implemented tariff reductions for bilateral trade. However, domestic taxes and technical trade barriers should not be used to offset the benefits of these agreements.

Thirdly, the Chairman also underlined the importance of elevating national branding. Greater investment is needed to promote Viet Nam not only as a premier tourist destination but also as a thriving hub for international business. 

Over the past years, Viet Nam has demonstrated remarkable economic growth, surpassing expert projections with GDP growth exceeding 7 percent last year.

He was convinced that the Year of the Snake will bring further opportunities. "We must enhance visibility to attract more European companies," he said.

Europe has a strong tradition of dynamic, family-owned SMEs, and we aim to establish a Viet Nam Connect program to encourage these businesses to choose Viet Nam as their next home.

Fourth, the Chairman also took the occasion to enable Viet Nam to enhance foreign Investment appeal.

Since 2011, EuroCham has published the quarterly Business Confidence Index (BCI) to assess business sentiment on Viet Nam's economic outlook.

In our latest BCI report, three in every four European businesses (75 percent) recommended Viet Nam as an investment destination.

Despite geopolitical situations, more than 70 percent of European businesses are expressing their confidence in Viet Nam and plan to expand their footprint investment and production here.

However, to further enhance Viet Nam's attractiveness, we must streamline administrative procedures to remove persistent bottlenecks including regulatory burdens on businesses investing and operating in Viet Nam; standardizing company establishment and investment registration procedures nationwide to minimize provincial inconsistencies and simplifying the requirements for work permits to bring in more international experts./.