On 12 December, 2017, the annual Vietnam Business Forum (VBF) 2017 was opened in Hanoi with the theme of “VBF - 20 years contribution and towards socio-economic development goals by 2020”. VBF 2017 was co-organized by the Ministry of Planning and Investment, the World Bank, the International Finance Corporation, and the VBF Consortium. The Forum acts as a policy dialogue channel between the Government and the business community, aiming at building a facilitating business environment and promoting sustainable economic development in Vietnam.
Prime Minister Nguyen Xuan Phuc attended and delivered a keynote speech at the VBF 2017. From the line ministries and agencies, the participants included Minister, Chief of the Government Office Mai Tien Dũng, Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong, Minister of Planning and Investment Nguyen Chi Dũng, etc. In addition, the VBF 2017 was also attended by the representatives of the Business Associations from many countries and more than 500 domestic and international business representatives.
Improving productivity, boosting private sector investment to improve the financial situation and business environment, facilitating private businesses’ breakthroughs, are the focus of the “Annual Vietnam Business Forum 2017”.
Prime Minister Nguyen Xuan Phuc speaks at the Vietnam Business Forum (VBF) 2017’s year-end session in Hanoi on December 12th, 2017
The VBF 2017 presented on the dialogue table 3 main contents of: (1) Improving productivity and other factors to promote the development of industries, (2) Encouraging private sector investment to improve fiscal conditions, and (3) facilitating the business environment for private businesses’ breakthroughs.
In the first session, the participants focused on discussing working conditions in different industries, support industries, technology transfer cooperation between foreign direct investment enterprises and domestic enterprises, and impacts of the Industrial Revolution 4.0 on the FDI in Vietnam. In the second session, the main focus is on topics of interest to many people: Public-Private Partnership/Private funds, Finance access for domestic private businesses, Development of the banking sector. Last but not least, the third session focused on how to improve the business environment to facilitate private businesses’ breakthroughs, such as: Administrative procedure and tax reforms, transparent governance and integrity.
A snapshot of the Vietnam Business Forum 2017
All discussions from the business community at the Forum were directed towards the 2020 socio-economic development goals – the VBF 2017’s theme. Many participants noted efforts to improve the business environment of the Government and the line Ministries, agencies at different levels. These efforts have generated more confidence among the business community. However, many enterprises are still facing difficulties in their production and business operations.
Representing the Banking Working Group (BWG), Ms. Natasha Ansell – Head of the Banking Working Group (BWG) – Chair of the Board of Directors of American Chamber of Commerce in Vietnam (AmCham) emphasized: “We are very impressed with the determination and efforts of the Government, the National Assembly, the State Bank of Vietnam and other Ministries on the new Resolution for Non-Performing Loans to address this core issue of the banking sector, release capital resources for the private sector to grow.” The Chair of AmCham also spoke highly of the SBV’s proactive approach in reviewing necessary changes to be recommended to the Government to contemplate new laws and regulations.
Ms. Natasha Ansell – Head of the Banking Working Group (BWG) - Chair of American Chamber of Commerce in Vietnam (AmCham) speaks at the Forum
In her speech, Ms. Natasha Ansell made some important recommendations, such as: (i) Issuing necessary policies and regulations for the application of optimum cash management solutions for multinational corporations operating in Vietnam; (ii) Providing interpretation and guidance coherent with the SBV’s regulations for foreign exchange management to help with the efforts to simplify banking documentation; (iii) Issuing a regulatory decision on maintaining bank accounts (including opening and using bank accounts) of entities who are not legal persons under the Civil Code of Vietnam.
SBV Deputy Governor Nguyen Thi Hong responds to the recommendations of BWG
Responding to the recommendations of the BWG, SBV Deputy Governor Nguyen Thi Hong said: On the development of cash flow management products, capital transfer of multinational corporations in Vietnam, the SBV and the BWG have held meetings, talks to discuss the nature, contents and forms of implementation, international experience on liquidity management products, and capital movements within multinational corporations. The BWG may continue to review the relevant provisions of Vietnamese laws, international practices to propose specific solutions to the relevant ministries and agencies to effectively implement the state management of this activity.
Regarding simplification of foreign exchange documents, Deputy Governor Nguyen Thi Hong emphasized that: The Ordinance on Foreign Exchange and Decree 70/2014/ND-CP stipulate the principles of examining foreign exchange transaction documents as follows: (i) Assigning credit institutions to review, examine and keep the papers and documents consistent with actual transactions to ensure that the provision of foreign exchange services is carried out properly and in accordance with the provisions of the law; (ii) Organizations and individuals, when conducting foreign exchange transactions, shall have to produce documents according to the regulations of credit institutions and take responsibility before the law for the truthfulness of the papers and documents presented.
SBV Deputy Governor Nguyen Thi Hong speaks at the VBF 2017
According to the SBV Deputy Governor, the above regulations aim at empowering credit institutions to decide when providing foreign exchange services to their customers, ensuring the control of documents in line with actual transactions. However, as stated in the BWG’s report that many businesses are experiencing some difficulties due to inconsistent understanding between the BWG and the law enforcement agencies on the regulations of document control, the SBV noted this recommendation and urged the BWG in the coming time to actively coordinate with the SBV and relevant ministries, agencies in order to reach a consensus on this issue in line with the regulations on foreign exchange management and to facilitate favorable conditions for the operations of CIs.
Regarding the subject status in civil transactions in general and the signing of open contracts and using of payment accounts in particular by organizations without legal person status (such as branches, representative offices, private funds,...), the State Bank of Vietnam (SBV) has realized the problems that have arisen and has guided the banks to follow the roadmap. In addition, the SBV has actively cooperated with other relevant ministries and agencies to have a unified solution for the issues related to the subject status in civil transactions.
On behalf of the SBV Board of Directors, Deputy Governor Nguyen Thi Hong thanked the Banking Working Group (BWG) for having always supported and worked closely with the SBV. The State Bank of Vietnam is committed to continuing the close collaboration with the BWG in the coming time to keep solving problems, creating a favorable business environment and a fair competitive environment, contributing to the development of a facilitating Government for the benefits of the economy in general and the banking industry in particular.
Prime Minister Nguyen Xuan Phuc in photo with the participants of the Vietnam Business Forum 2017
VA