“In 2024, policies approved by the National Assembly need to be implemented quickly and effectively to help the business community overcome this extremely difficult period. Many businesses claimed that current challenges are even greater than those during the epidemic because they have already exhausted by COVID-19,” Chairman of the Vietnam Chamber of Commerce and Industry Pham Tan Cong said as he was sharing about prospects of the business climate in 2024.

Synchronous implementation of policies

The business community, government, and relevant ministries and agencies have striven to achieve the socio-economic targets set for last year. Looking ahead to this year, what is your perspective on the business prospects, and what recommendations do you have for supporting the business community in the times to come?

Chairman of VCCI Pham Tan Cong: 🌠Resilience makes the very quality of Vietnamese people. It explains how the business community has navigated challenges during 2023 – and it must be acknowledged that these challenges were exceptionally formidable. Certain sectors of the economy, such as real estate and garment and textile suffered a great deal.

Reports at various state-level meetings unveiled that many businesses were drained, vividly mirrored in their production and operational endeavors. Nevertheless, businesses have continued to make efforts to sustain their operations, preserving employment opportunities for the workforce. The overall spirit of the entrepreneurial community remains steadfast from the onset of the pandemic to this point. Therefore, the overall economic stability has been maintained, with employment rates and income levels remaining rather good. This underscores the tireless efforts of the business community, which has contributed significantly to the collective success of the government in managing the national economy, ensuring social welfare, and maintaining macroeconomic balance. While many large economies around the world grappled with crises, economic downturns, and soaring inflation, Vietnam’s inflation rates are even lower than those in developed nations, such as the United States, the United Kingdom, and Japan. This is a surprising and unexpected outcome. The business community acknowledged the Government’s drastic efforts and appreciated its improved fiscal policies. As this is a sensitive period, they expect synchronous business-assistant policies. For example, 2% reduction in value-added tax is more beneficial to the people in general. For business, they expect value-added tax refunds. Also, administrative procedure streamlining and digitalization need to be accelerated and carried out in a steadfast manner. Some procedures, though having been streamlined, are still complicated for both the administrators and businesses.

National programme on entrepreneurial training

The Politburo’s Decree 41-NQ-TW dated October 10, 2023 on building and promoting roles of the Vietnamese business community is expected to create growth momentum for the whole nation. Could you please elaborate on this policy?

Pham Tan Cong: 🅘Decree 41 sets out several major policies, including those on finance and credit. Notably, it mentions a strategy on building a business community and a national program on entrepreneurial training.

Currently, training activities are held primarily at colleges. We have not had any national training program. This requires the participation of all economic stakeholders as it directly correlates with policy-making regarding business environment creation, financial support, capital, and credit assistance. Furthermore, entrepreneur training requires well-structured programs, curricula, and a dedicated core team of instructors. VCCI is to pioneer on these works by developing programs that send Vietnamese entrepreneurs abroad to improve their skills and knowledges. Additionally, managerial knowledge enhancement programs will be strategically linked with the international business community, fostering opportunities and expanding the business scope for Vietnamese enterprises.

Supply chain rechanneled

Could you please elaborate on opportunities awaiting Vietnamese businesses in the time to come?

Pham Tan Cong: ♊In terms of opportunities, I want to emphasize that not only the entrepreneurial force but the entire nation is facing a historically significant opportunity.

Against the backdrop of the post-COVID-19 era, the disruption of the global supply chain, geopolitical tensions, the world is in need of supply chain rearrangement. At this historical juncture, Vietnam stands out as a focal point with its potential, position, and elevated international reputation. The pressing issue at hand is that multinational corporations are currently seeking a reliable supply source to secure their production chains. This presents an opportunity for Vietnam, riding on its ascending internal strength. Domestic entrepreneurs and businesses need to seize this opportunity. While developed countries possess technology and investment capital, Vietnam offers an attractive business environment. What is crucial now is to swiftly build a team of entrepreneurs who can stand shoulder to shoulder with international partners. The issuance of Resolution 41 recently affirms the Party’s view on the roles of business community in propelling Vietnam forward into a developed nation. This inspires the business community to contribute more. Still, it requires the whole political system to join hands. On VCCI’s part, we will go hand-in-hand with businesses to remove obstacles facing them. To enter the global arena, each entrepreneur must first possess a mindset of integration and an understanding of international business culture. Also, the entrepreneurial force needs to enhance management capabilities, technological proficiency, and most importantly, prepare the enterprise's human resources. VCCI's primary task is to continue promoting improvements in the business environment in line with the spirit of Resolution 41. This involves strengthening the handling of economic violations through robust financial mechanisms.

Thank you for your time./.