The Vietnam Chamber of Commerce and Industry (VCCI)’s recent survey shows business confidence has increased thanks to the State’s commitment to make the business environment more business friendly.
The Vietnam economy has bottomed out and is now rebounding and back on track, thanks to remarkable growth in the first half of this year despite numerous challenges, including the tensions in the East Sea.
In the past six months, the number of newly-established businesses dropped nearly 40%, but registered capital still managed to rise a hefty 20% from last year’s same period.
Roughly three-fourths of 7,000 businesses surveyed by the General Statistics Office (GSO) reported their profits in the six month period were higher than that recorded a year earlier.
The GSO report is solid evidence that the national economy is in a period of dramatic recovery, resulting in a larger scale of business operation with higher profits.
The good economic news is consistent with earlier predictions made by leading economic experts at the end of last year after the Government undertook a series of macro-solutions to contain inflation, reduce banks’ lending interest rates, and stabilize the price of domestic gold and the forex market.
Foreign investors from Europe, Japan and the Republic of Korea have also expressed strong confidence in Vietnam’s business climate, especially after the Vietnam Government effectively intensified measures to deal with civil unrest in response to China’s wrongdoings in the East Sea.
In its 15th Business Climate Index (BCI) survey, the European Chamber of Commerce in Vietnam (Eurocham) recently revealed that Vietnam’s BCI is back to its 2011 levels-having gone from last quarter’s 59 to 66, which demonstrates the European business community’s commitment to the Vietnamese market.
Foreign-invested enterprises have also enjoyed an export surplus which has contributed greatly to elevate the country’s trade surplus to US$1.3 billion in the first half of this year.
The private economic sector’s technology upgrade and market expansion efforts greatly help it perform well in the reviewed period. The sector is making thorough preparations to compete against rivals in both the local and global markets.
This is particularly pertinent given the backdrop that the ASEAN community is poised to be established and trade liberalization widened following the ASEAN-China Free Trade Agreement, scheduled to take effect as from January 1, 2016.
Leading economic experts are avidly advocating the need for increased self-reliance and independence of the nation’s economy. Focus should be given to developing trademark, creating linkage, building equal economic relationship in bilateral and multi-lateral negotiations.
Vietnam should make full use of its competitive advantages in exporting its key farm produce and take the global lead in agriculture exports. The core and fundamental objective is to lay a solid foundation upon which of outstanding businesses can boost sustainable economic growth.