Insights 13th January 2020: Vietnam Business Forum-Role and support of FDI in rapid and sustainable development
I attended the Vietnam Business Forum (VBF) plenary session in my capacity as Founder of Grant Thornton and Chairman of the Tourism Working Group. In his address to the Forum, Deputy Prime Minister Dung emphasized the need to strengthen links between the FDI and community and local business to help with both economic development and to improve the quality of economic growth, through the application of advanced technology, increased automation, green growth, and the efficient use of energy.
He stressed the need for better connectivity between FDI companies and local companies to help build a better supply chain and stronger local companies. Also FDI companies can help with creative development and he recognized that AI can be a foundation for governance change.
The Government on their side will continue to work to improve the business environment and increase transparency and reduce regulatory requirements. They will prioritize investment in infrastructure, education and science. The Government will continue to work promote FDI and will continue the work on institutional reform. The Government has set up a task force to review all legislation and to remove the conflicts that currently exist between different laws and regulations and will work to reduce 20% of business regulations and reduce compliance costs.
This is very important to assist the Government in meeting their targets of middle income development to an average per capita income of US$ 9000 by 2030/35 and US$ 18,000 by 2045.
The World Bank Country Director Ousmane Dione stressed, as had the Government, that the private sector was a key driver to growth and supported the new development agenda of “rapid and sustainable development”. He stressed the need to adopt the 3 Q’s: 1) Quality of Institutions and the need to modernize; 2) Quality of Infrastructure the role of the private sector and PPP being critical for the development of energy and transport resources; 3) Quality of Human Capital and the need for better higher education, vocational training and soft skills. He concluded by saying that the private sector is a driving force for digitalisation and innovation and will help achieve the Government’s new objective of Made BY Vietnam not Made in Vietnam.
Kenneth M Atkinson
Founder and Senior Board Adviser
Grant Thornton Vietnam