Workshop seeks ways for stronger economy hinh anh 1Delegates at the workshop (Source:
Hanoi (VNA) - Limitations in growth model reform, inadequate policies towards businesses and loose connectivity between domestic and foreign enterprises are among the causes eroding the attractiveness of Vietnam’s investment climate, according to head of the Party Central Committee’s Economic Commission Vuong Dinh Hue.

It is a must to assess Vietnam’s competitive edge in comparison with global competitiveness, and devise solutions to raise the national index, Hue said at an international workshop on March 26.

Besides, the country should evaluate the competitive edge of local businesses as well as their products against the national backdrop, he added.

The official suggested Vietnam create solutions and institutions to attract the world’s venture capital funds in order to support startups, especially small and medium-sized, and private enterprises, explaining that apart from opportunities, the startups are expected to face a string of risks.

At the same time, the country should put in place specific solutions to help local firms better connect with foreign direct investment (FDI) partners and take part in the global value chain, he said.

Other delegates at the workshop emphasised the need for Vietnam to bring into full play opportunities afforded by the Trans-Pacific Partnership (TPP) agreement to which it is a member.

Administrative reform decides the presence of new waves of investments and startups, said Vu Tien Loc, Chairman of the Vietnam Chamber of Industry and Trade.

He proposed the Government create an optimal and equal institutional environment in tandem with rolling out measures and policies in support of SMEs. Businesses themselves should stick to those creations, he added.

World Bank Country Director to Vietnam Victoria Kwakwa said red tape in procedures, bureaucracy and corruption are the roots of a sluggish economy.

A transparent banking system and well-regulated financial market are necessary for institutional streamlining and infrastructure development which can ensure economic growth, she added.

The World Bank official also suggested Vietnam develop skillful labourers who can easily adapt to economic changes.-VNA