Bamboo Airways chairman advocates for fair treatment and policy improvements to support the private sector.

Vietnamese entrepreneurs face mounting regulatory challenges, with complex licensing requirements stifling business growth. Experts call for urgent reforms to improve Vietnam’s investment climate.

According to the Ministry of Planning and Investment, there are currently 940,000 active enterprises, falling short of the target of one million by 2020 and 1.5 million by the end of the year.

Prime Minister Pham Minh Chinh has requested extra efforts to reduce administrative procedure processing time and business costs (compliance costs) by at least 30%, while also abolishing 30% of unnecessary business conditions.

Vietnam plans to eliminate 30% of business regulations, reduce costs, and boost economic growth, positioning itself as a top ASEAN investment destination.

To meet the ambitious economic growth target of 8 per cent or more in 2025, experts emphasise the need to reduce business regulations and eliminate procedural barriers that hinder operations.

Despite great efforts to improve the business environment and simplify administrative procedures, there are still many complexities undermining businesses.

As of January 2024, there were 8,058 businesses with over 50% of their charter capital invested by the RoK, accounting for 28% of all FDI firms in Vietnam.

The "Turn right only" regulation on roads has caused a headache to a building material company.

Despite a decline in global investment flows, Vietnam remained an attractive destination for foreign companies, especially large-scale enterprises, experts have said.

Each company inspection last year required an average of 9.8 hours and a cost of VND1.8 million, according to the Administrative Procedure Cost Index 2022 (APCI 2022) report.

Improvements in the group of investment administrative procedures are still slow and not yet in sync with policies to attract investment at the local level.

Under current regulations, measuring tools used for private purposes must also be managed like tools used for public purposes, which affects businesses’ operations.

Viet Nam jumped 12 positions in the latest Global Business Environment Rankings for the second quarter of this year released by the Economist Intelligence Unit (EIU) under the UK’s Economist Group.

The business community was happy to hear that the Prime Minister has released urgent instructions requesting ministries, branches and localities to quickly solve  problems that are obstructing enterprises’ operations.

 VietNamNet Bridge - As reported by the Ministry of Planning and Investment, during the period between January and November, Vietnam had 67,790 new businesses, with a total registered capital of VND391.3 trillion.