Irresponsible investors not welcome: PM

08-Dec-2016 Intellasia | The Saigon Times | 6:00 AM Print This Post

Vietnam does not welcome those investors who eye the country as a haven to practice transfer pricing and who show no responsibility for the environment, prime minister Nguyen Xuan Phuc said at the 2016 Vietnam Business Forum (VBF) in Hanoi on December 5.

Reiterating theme of the forum, heightening the role of the private sector, the prime minister stressed the private sector was an important driving force of Vietnam’s economy, contributing to establishing the country’s position in the global value chain.

He informed 2016 was the first year with more than 100,000 startups, or 12 new companies had been set up every hour in the year to date.

The prime minister mentioned the great number of 3.5 million individual business households, seeing this as an important economic force with a profound effect on the aim for one million businesses by 2020.

He also brought up the number of around 21,000 foreign-invested enterprises (FIEs) with total investment capital pledges of $300 billion in Vietnam, including many international corporations. He said FIEs had strong growth potentials and good cooperation with domestic enterprises, including those in the private sector.

Under the economic development strategy for 2016-2020, Vietnam will offer favourable conditions for Vietnamese businesses to thrive, especially the private sector, the head of the government noted.

“I emphasize Vietnamese businesses consist of FIEs with legal status in Vietnam and domestic firms. This is the major orientation of the government on the formation of the Vietnam business community with connection and effective cooperation in the unified national economy.”

Prime minister Phuc pledged to continue perfecting the market economy, creating a favourable environment for business and investment, enhancing the national competitiveness, and facilitating the private sector to prosper.

He called for the business community to deeply engage in economic restructuring via the diversification of investment activities to promote entrepreneurship and innovation.

The government particularly encourages the development of supporting industries so that local businesses will be able to offer many qualified components, spare parts and services meeting the requirements of FIEs, and work with the relevant parties to bring goods made in Vietnam into the distribution chains of the region and the world.

“The government shall make efforts to create a favourable investment environment, protect property rights and intellectual property rights and, most importantly, join hands with enterprises to do these important jobs,” said Phuc.

However, Phuc stressed that the government does not welcome those investors who consider Vietnam as a place for transfer pricing and who evade their responsibility for the environment, contrary to the basic principles and the core values that they have committed to, he affirmed.

This would not only be detrimental to the sustainable development interests of Vietnam but also affect the reputation and the business model of many other investors present in the country.

The consistent view of the government is every business is equal before the law, he highlighted. The government will take actions for the business community to link with one another and work together to grow at home and expand elsewhere in the world.

This year’s forum addresses seven major topics, including capacity building for small and medium-sized enterprises; promoting supporting industries; improving human resources via training; developing the capital market; investing in infrastructure; clean and renewable energy; and climate change and environmental protection.

First organised in 1997, the forum has served as a policy dialogue between the government and the private sector, with an aim to create a favourable business environment and promote sustainable development.


Category: Economy, Vietnam

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