Solutions suggested to improve investment environment in Ho Chi Minh City

Representatives of Foreign Business Associations have proposed several solutions to improve the investment and business environment in Ho Chi Minh City at a meeting with municipal officials hosted by the Investment & Trade Promotion Centre of the city on March 14, 2024.
Solutions proposed to improve investment environment in HCM City
Chairman of the municipal People's Committee Phan Van Mai (L) talks to a delegate at the event (Source: VNA)

Addressing the event, Vice Chairman of the municipal People's Committee Vo Van Hoan affirmed the city’s authorities always accompany businesses, including foreign direct investment (FDI) enterprises, stressing that contributions made by FDI firms play an important role in the city's social investment.

According to the official, in 2023, the southern economic hub continued to lead the country in terms of registered FDI capital, with nearly 6 billion USD, surging by nearly 50% compared to 2022, and accounting for 16% of the country's total FDI attraction.

This highlights efforts of the municipal authorities in improving investment environment and implementing its commitments to investors and businesses, Vice Chairman Hoan said.

Resources from FDI enterprises are crucial for the city's development and help facilitate its’ economic restructuring, he noted.

Ramachandran A.S, Chairman of the American Chamber of Commerce in Vietnam (AmCham) stressed that the partnership achieved by the governments of Vietnam and the US is an important foundation for promoting cooperation between the business communities, contributing to the economic growth of the two nations.

Ho Chi Minh City should focus on strengthening the high-value production ecosystem, including areas such as tertiary education, innovation and digital transformation across sectors, logistics, infrastructure, energy, and sustainable development; investing in infrastructure development; enhancing the quality of healthcare; and improving policy environment, he said.

According to Wesley Chua, Vice Chairman of the Singapore Chamber of Commerce Vietnam (SCCV), administrative procedures in Vietnam are still complex and could pose obstacles for foreign investors.

He also mentioned other limitations such as a shortage of skilled labourers, the backwardness of transportation network, seaports, and power supply which raises logistics costs and poses challenges to foreign investors.

Meanwhile, Do Thi Hong Duyen, a member of the leadership board of the German Business Association in Vietnam, said HCM City and Vietnam in general need to pay heed to improving the investment environment through policy reforms, education reform, improving transportation infrastructure, and simplifying visa policies.

Phan Van Mai, Chairman of the municipal People's Committee stated that the city has concentrated on three growth pillars of investment, consumption, and exports.

In its long-term strategy, the southern economic hub is developing new growth drivers such as a financial hub, digital economy transformation, and green transformation to keep up with global development trends, he said, adding that the municipal authorities have also promoted efforts to better the quality of healthcare, education, transportation, and living environment to attract quality and sustainable capital flows.

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(Source: VNA)