At the recent Midterm gathering of the Vietnam Business Forum (VBF) 2013, remarking on the business environment in the past time, Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI) pointed out seven improvements from the perspective of the business community in Vietnam.
One, VCCI proposed reducing the corporate income tax to 20 percent. Based on that, the Government submitted the lawmaking National Assembly the two rates: 20 percent on small and medium-sized enterprises (SMEs) and 22 percent on large enterprises.
Two, VCCI proposed raising minimum wage by only 15 percent a year instead of the government-expected 25-27 percent. The government has decided a 17.5 percent increase.
Three, VCCI proposed eliminating the ceiling on advertising and marketing of businesses. The Government has submitted to the National Assembly a rise of 10-15 percent from the ceiling.
Four, VCCI recommended restoring incentives for expanded investment projects as well as new investment projects of the FDI sector. The Government has sent this to the National Assembly.
Five, the Government suggested establishing the National Wages Council comprising of Government officials and social partners.
Six, the State Bank of Vietnam (SBV) took drastic measures to lower interest rates and the Government arranged VND30 trillion to support residential housing for low-income people and support the real estate market.
Seven, VCCI proposed accelerating the progress of major projects with important socio-economic development impacts like the restoration and upgrading of National Road 1, the construction of Lach Huyen International Port, Southern Port System (Thi Vai) and Noi Bai International Airport. And, the Government actively carried out these projects.
Four recommendations
At the VBF, Dr Vu Tien Loc also put forth four recommendations of domestic and international business communities to the Government.
First, Vietnam needs to be consistent with macro-economic stability policy. Businesses proposed the Government to stick with macroeconomic stability goals, control inflation and maintain reasonable growth rate, and keep alert before pressures of rapid short-term but unsustainable growth.
According to Dr Loc, this is particularly important to the formation, survival and development of enterprises in the long term.
Second, the Government needs to speed up structural reform. Accordingly, the Government should give priority to institutional reform and quicken economic restructuring rather than being caught with short-term solutions. Short-term business measures must also encourage quickened restructuring and long-term competitiveness improvement.
Hence, VCCI President suggested the Government not delay any longer SOE reform, build an equal competitive environment for all economic sectors, increase transparency, apply modern governance standards in SOEs, promptly divest from businesses whose shares the State does not need to hold.
Third, Vietnam needs breakthroughs in enterprise support policies. Accordingly, VCCI will recommend lowering corporate income tax to only 20 percent, eliminating ceiling advertising and marketing expense limit or bringing it to at least 15-20 percent of revenue, not costs, reducing value-added tax (VAT) to stimulate the market, and maintaining visa exemption for tourists from key markets.
Fourth
Đăng ký: VietNam News
