Vietnam makes impressive achievements on stable growth, open-door policies: Kocham chairman

Over the past decades, Vietnam has achieved impressive results thanks to stable growth and open-door policies, said Ko Tae-yeon, chairman of the Korean Chamber of Commerce (Kocham) in Vietnam.

Speaking to Vietnam News Agency on the occasion of the 80th anniversary of National Day (September 2), Ko said Vietnam’s institutional reforms, especially recent digital transformation and simplification of administrative procedures, have created clear changes, making the investment environment more transparent and effective.

For example, the time for granting investment licences has been shortened, and transparency in handling infrastructure service (logistics) procedures has been improved.

Korean enterprises see Vietnam as a dynamic market with great potential, while affirming Vietnam's position as an important link in the global supply chain, Ko said, expressing his belief that groundbreaking reforms will continue to open up many opportunities for Vietnam in the coming time.

Regrading Vietnam’s efforts in promoting administrative reforms, he said that the simplification of administrative procedures is a very positive signal. The increased predictability in the licensing process will help businesses reduce risks and confidently implement long-term strategies. If reforms continue to be implemented specifically and substantially, the flow of investment capital into Vietnam will certainly increase.

However, he also emphasized the need of a dialogue mechanism in which the Government can regularly listen to business opinions to promptly remove obstacles, helping production and business activities run smoothly.

In the coming time, areas such as smart cities, eco-industrial parks, high-tech manufacturing, electric vehicle and semiconductor supply chains will be bright spots for cooperation.

“This is a golden time for Korean businesses to accompany Vietnam, preparing for a new stage of development,” the Kocham chairman said.

He noted that in the long term, administrative reforms will improve management efficiency. However, the recent rearrangement of provinces and cities in Vietnam have caused some short-term difficulties for businesses.

Many Korean businesses have to resubmit tax records and procedures, while business licensing is delayed due to changes in management agencies. In addition, there are differences in the understanding and application of regulations between localities, affecting business operations.

In particular, the merger of the Ministry of Planning and Investment (MPI) into the Ministry of Finance (MoF) also makes foreign investors worried, because the MPI is the focal agency supporting FDI enterprises.

Kocham, therefore, hopes the Vietnamese Government will soon provide clear guidance and maintain a regular dialogue mechanism to ensure a stable environment for businesses.

In his opinion, the most important factors that need to be ensured are consistency, transparency and stability, Ko said, adding that when these three factors are maintained, business confidence will be strengthened.

Ko also suggested Vietnam have a stricter management mechanism to avoid unhealthy "human resource attraction" among enterprises, while enhancing skills training for workers. In addition, the issue that a same policy is applied differently among localities also needs to be addressed, he said.

When these policies are implemented synchronously, Vietnam will continue to affirm its position as a reliable global economic partner. As for Korean enterprises, they are always ready to accompany Vietnam for the long term, Ko added.