Transcript NMCP - Public-Private Dialogue

VBF
Vietnam
Business
Forum
Sin Foong Wong
IFC Country Manager
June 2007
Agenda
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Overview of VBF
Mandate
Structure and operation
Participants
Key policy areas/themes
VBF May 30, 2007- Issues and Resolutions
Going forward
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Overview of VBF
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Background: established in 1997 as a result of
the Vietnam Consultative Group (CG) Meeting in
Tokyo
Objectives:

To improve the investment and business
environment in Vietnam

To strengthen the role and voice of the
private sector in Vietnam
Method: to promote ongoing, structured policy
dialogue between the business community and
the Government
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VBF structure
Consultative Group
(CG)
Vietnam Business
Forum (VBF)
World Bank
(WB)
(Deputy) Prime Minister
International Finance
Corporation
(IFC)
Ministry of Planning
& Investment
(MPI)
VBF Secretariat
Inter-Ministerial
Team (IMT)
M&D Working
Group
Business Associations
Banking
Working
Group
State Bank of
Vietnam (SBV)
Capital
Markets
Working
Group
Ministry of
Finance (MOF)
& SSC
Infrastructure
Working
Group
Note:
Working relationship
Establishing
Supporting
Tourism
Working
Group
MOT/MOPT/
MOI
Vietnam National
Administration of
Tourism (VNAT)
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Main business groups participating in the VBF
Business Groups actively participating in the VBF activities:
DOMESTIC
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Can Tho Business Association (CBA)
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Association of Garment, Textile, Embroidery, and Knitting (AGTEK)
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Hanoi Young Business Association (HBA)
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HCMC Association for Young Entrepreneurs (YBA)
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Hanoi Union of Association of Industry and Commerce (HUAIC)
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Vietnam Association of Financiers (VAFI)
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Vietnam Chamber of Commerce and Industry (VCCI)
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HCMC Computer Association (HCA)
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HCMC Food and Foodstuff Processing Association
FOREIGN
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Eurocham
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Auscham
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Amcham
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Singapore Business Group (SBG)
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Canadian Chamber of Commerce (CanCham)
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Korean Chamber of Commerce and Industry (KORCHAM)
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Hongkong Business Association (HKBAV)
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Japan Business Association (JBA)
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Key areas/themes
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Improve tax regime
Streamline
registration/licensing/procedures
Unify investment
incentives and protections
More equitable access to land
and land use rights
Broad collaboration in a range of
initiatives toward sustainable tourism
development
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Improve banking system and
develop sustainable capital markets
Streamline legislative regime in
infrastructure development
Enhance capabilities and private
participation in 3 prioritized sectors:
port, power and telecoms
Enhance skill labor quality and
supply along with labor relations
Reduce obstacles associated with
labour requirements and licensing
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Main recent results
1.
Unified legal framework for domestic and foreign investment and
business.
2.
Newly-established legal framework for BOT projects (BOT Decree
issued in May 2007).
3.
Clearer and more transparent land clearance and compensation
procedures (Decree 84 issued in May 2007).
4.
Detailed guidelines for implementing Decree 22 providing more
opened environment for foreign banks.
5.
Close collaboration of the Vietnam National Administration of Tourism
and the private sector in tourism development strategy and tourism
marketing and promotion initiatives.
6.
Improved port handling capabilities to catch up with cargo and
economic growth demands.
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VBF May 30
Business’s Perception on Business Environment
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WTO accession => Business legislation being harmonized with
international practices
More level playing field for all enterprises regardless of ownership
How Vietnam should respond to and capitalise on its recent acession to the
WTO?
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Implementing the WTO commitments in a timely manner
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Closer co-ordination between the government and business associations to
adapt to the new rules and tap into the WTO benefits
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Diseminating comprehensive information on WTO to frontline goverment
officials to ensure proper and uniform implementation
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Encouraging private sector participation in educaton and training to adress
the shortage of human resources
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VBF May 30 – Issues & resolutions
Banking and Capital Market
ISSUES
RESOLUTIONS
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Upgrading
Vietnamese
banking
regulations in line with WTO and
international practices.
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Recognition
and
application
of
international laws to Vietnamese court
system in addressing
cross-border
banking transactions.
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Further
liberalization
transactions.
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Strengthening inter-ministerial coordination to ensure capital market
development and macroeconomic
stability.
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of
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Greater liberalization along with market
developments to be granted. Detailed
guidelines for implementation of Decree
160 on forex transactions to be consulted
and issued in Summer 07.
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Need of strong co-ordination between
state agencies in development and
supervision of capital markets was noted.
Establishment of a supervisory body
comprised of the SBV and the MOF,
including the SSC is under consideration.
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Regulations on bond issuance for private
companies are available (Decree 52);
Credit rating agencies, a separate
“market” for issuing bond and an
electronic portal for bond trading
connecting to the ASEAN bond market
are under establishment process.
forex
Clarifying regulation on subscription
rights; Role of securities companies in
underwriting; and possibilities for private
companies to issue corporate bonds.
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VBF May 30 – Issues & resolutions
Implementation of Vietnam’s WTO
commitments
ISSUES
RESOLUTIONS
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Measures to offset subsidy removal
in export manufacturing.
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Measures to offset subsidy removal
are under consideration.
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Use of WTO commitments as the
floor, or minimum standard.
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Vietnam’s rules will prevail if they
are more favorable than WTO
commitments.
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Detailed guidelines to implement the
WTO commitments.
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Circular to guide Decree 23 on FDI
Enterprises trading and the Decree
to guide the implementation of
certain WTO commitments to be
finalized and issued soon.
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Existing enterprises only need to
revise import/export rights if needed
and re-register them with the MPI.
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Commercial presence in branch
form in certain areas e.g. distribution
services, advertising, and logistics is
no longer allowed.
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Clarification on the licensing for
foreign trade branches, criteria
distinguishing between foreign and
local companies.
Impediment to import, export and
distribution: “Economic Need Test”
for
foreign
invested
retailers,
cumbersome
re-registration
requirements
for representative
offices.
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VBF May 30 – Issues & resolutions
Implementation of Investment and Enterprise Laws
ISSUES
RESOLUTIONS
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Difficulties
of
businesses
in
implementation of the two laws were
acknowledged.
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A new Decree addressing the
mentioned problems is under
consultation and to be issued soon.
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BCC conversion is not covered by
the new Decree as
related
provisions in the EL and IL suffice
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Specific conditions for certain areas
of investment to be subject to
specific laws and regulations
governing those areas.
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Uniform guidelines from the central
government to provinces to ensure
the consistent application of the laws
nationwide.
Further guidance or clarification to
facilitate the implementation of the
laws:
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Conditions applicable to projects
in conditional business sectors.
Sales of shares in local
companies to foreign investors.
Conversion of BCC into JVs or
Joint stock companies.
Procedures for transferring
shares or transferring a project.
Practicing certificate, company
name, criteria for director,
language used in official
documents etc.
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VBF May 30 – Issues & resolutions
Others
ISSUES
RESOLUTIONS
1. Port
1. Port
 Lack of sea port capacity to cope with
increasing demand in the next few
years post WTO entry.
 A number of licenses be granted to port
developers recently.
 Inadequate development of in-land
infrastructure & channel systems.
 Delay of the ODA-funded terminal
project at Cai Mep.
2. Tourism
 Inadequate
transportation
and
accommodation facilities to meet
increasing
demand
and
quality
standard.
 Delays in
approvals.
planning
 Bad practices,
contracts.
and
including
project
broken
 Handling capacity in several ports have
been improved.
 Port Master Plan is under review to reflect
market changes and be submitted for
approval in July.
 An inter-ministerial team supervisory body
to be set up to identify shortfall and
solutions for port planning.
2. Tourism
 Good co-operation between VNAT and
TWG to be continually fostered.
 Implementation of Tourism Master Plan to
be discussed with TWG once the plan is
approved.
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VBF May 30 – Issues & resolutions
Others
ISSUES
RESOLUTIONS
3. Mining
3. Mining
 Reconsideration of Decision 67 on
export tariff of minerals
 Decision 67
development
capabilities.
 More encouragement of FDI in the
mining sector
is
of
to
encourage the
domestic processing
 Continued dialogue with the Government
in mining issues to be held.
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Going forward
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Include fully domestic and regional investors
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Improve position paper quality
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Diversify forms of co-operation with the government, not just closed
door meetings (e.g. workshops, surveys, research, publication)
Form Education & Training working group
Strengthen communication activities by finalizing the construction of
new VBF Website
Coordinate closely with donor programs and CG agenda to
implement necessary reforms
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Contact
VIETNAM BUSINESS FORUM SECRETARIAT
C/o: IFC
63 Ly Thai To
Hanoi
Tel: +84 4 9342282
Fax: +84 4 9342289
E-mail: [email protected]
Contact person
Pham Lien Anh, VBF Secretariat
www.vbf.org.vn
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Thank you for your attention
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