Illustrative photo (Source: VNA)
Hanoi (VNA) – Administrative reform across several State agencies has yet to provide instruments to help local businesses get off the ground, as heard during the Vietnam Business Forum opened in Hanoi on December 1.

Reviewing the overall economic picture, Minister of Planning and Investment Bui Quang Vinh admitted to shortcomings in both nationwide drives to overhaul administrative procedures, fight corruption and wastefulness and preparations of enterprises for global integration.

Efficient administrative models have been devised, however, have yet to be implemented effectively, he said.

The minister added that Vietnam is still making its way towards completing a market economy mechanism with priorities focusing on improvements in corporate competitiveness, business climate and the legal framework.

Representing the business community, Vietnam Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc acknowledged improvements in the Government and levels’ efforts on administrative reform. However, he said, they have yet to meet businesses’ expectations.

According to Loc, a recent survey conducted by his agency revealed that the scale and success of a private company parallels the administrative costs and the rate of inspections it faces.

Statistics showed that domestic enterprises on average are becoming smaller in size.

Loc proposed alongside administrative reform, legal reform should be top of the agenda in a bid to improve local business environment amid the upcoming implementation of several free trade agreements.

The annual forum has seen increasing number of attendance in recent years, reflecting the importance of effective communications between the Government and the business community.

Both sides have common ground covering a range of spheres, including trade, investment, banking, infrastructure and human resources.

The World Bank’s International Finance Corporation, the Ministry of Planning and Investment and the VCCI coordinated the annual dialogue this year.-VNA