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The economic stimulus package of nearly VND350,000 billion is considered to be an important push to help enterprises boost production and business, towards higher growth goals in 2022. Photo: Hoang Vinh.

Vietnam is in the strongest position

Speaking at the high-level session of the Annual Vietnam Business Forum (VBF) 2022, Mr. Nitin Kapoor, representative of the British Business Association in Vietnam (BritCham Vietnam), said that one of the important elements of this recovery would be the reopening of borders along with a set of rules and regulations on national immigration to allow entrepreneurs and tourists to return safely, once again ensuring that competitive advantage was not ceded to regional rivals.

According to Mr. Alain Cany, President of the European Chamber of Commerce in Vietnam (EuroCham), leaders of European enterprises in Vietnam had given optimistic and confident signals to Vietnam's “new normal” trade and investment environment, as reflected in the EuroCham Doing Business Index (BCI) increasing from 42 points to 61 points in January 2022.

“Now, when the Covid-19 pandemic has been gradually controlled, the EVFTA is already in effect, the EVIPA will be implemented soon, Vietnam has the opportunity to attract a new wave of FDI from European investors looking for a potential, safe and competitive investment environment. Therefore, we welcome the Government's efforts in promulgating, amending and simplifying a number of regulations to be in line with the provisions of the EVFTA. Vietnam is in the strongest position to prosper in this post-pandemic period. The foundations for Vietnam's three decades of near-unbroken economic growth remain solid,” emphasized Mr. Alain Cany.

According to the EuroCham President, EuroCham is very pleased with the decision to reduce the mandatory quarantine period upon entry to 3 days as well as abolish the approval procedures applied to foreigners with residence cards, visas and a valid visa exemption. This is highly appreciated by the foreign business community of Vietnam. A return to pre-pandemic visa regulations is essential to bring FDI back to Vietnam and to ensure that tens of thousands of international enterprises already present in Vietnam can continue to contribute to Vietnam's economic growth in the coming years.

Proposing further reduction and postponement of corporate income tax payment

On behalf of the American Chamber of Commerce in Vietnam (AmCham), Mr. John Rockhold, Chairman of the Association, emphasized that the most important factor to create a favorable investment environment and to maintain and develop the manufacturing supply chain was a fair, transparent, predictable regulatory and rationalized environment, appreciating innovation – not only to attract new investment but also to maintain and grow existing investments. AmCham would continue to advocate for the strengthening of the US-Vietnam trade and investment partnership through the Indo-Pacific Economic Framework.

“Although Vietnam has maintained a positive economic growth rate during the pandemic, many small and medium enterprises in heavily affected industries such as tourism, hotels, food services, transportation still have to downsize or suspend operations. To support the economic recovery, we recommend that the government continue to reduce and postpone the payment of Corporate Income Tax in 2022 and 2023,” suggested John Rockhold.

Speaking at VBF 2022, Prime Minister Pham Minh Chinh said that in 2022, Vietnam would continue to perform tasks in the context of the “new normal” due to the pandemic, the situation continued to be complicated, strategic competition was fierce in the world and in the region, many unstable and unpredictable factors could be predicted.

The implementation of the socio-economic recovery and development program with a scale of VND350,000 billion (approximately more than 4% of GDP) would focus on groups of key tasks and solutions such as opening the economy in association with investment in improving health capacity, disease prevention and control; ensuring social security and employment; supporting the recovery of enterprises, cooperatives and business households; investing in infrastructure development in important, urgent and pervasive projects; reforming institutions, reforming administration, improving the business and investment environment.

At the same time, the Prime Minister also hoped that enterprises and associations would continue to accompany, support and assist Vietnam in the process of rapid recovery and sustainable development in the spirit of “sharing joys and sorrows”, “interest harmony and risk sharing”.

The Prime Minister assigned relevant ministries, branches and agencies to study, absorb, respond to and handle valid opinions and recommendations at the Forum in the course of performing their tasks, solving shortcomings and limitations in the implementation stage, removing institutional and legal barriers, better supporting the business community and international organizations, and promoting the development and recovery of the production chain.