Vietnam’s business environment changing for the better: European commerce chamber

Vietnam’s government has been praised for its economic and administrative development by the European Chamber of Commerce in Vietnam (EuroCham), an organization representing over 1,000 European businesses.

“The chamber appreciates the continued constructiveness and openness of the government in understanding the essential role of businesses and treating them as partners in increasing trade, investment and economic development,” EuroCham stated in the 10th edition of its Whitebook.

EuroCham praised the government for cutting over 5,000 administrative procedures and creating opportunities for small and medium-sized enterprises to enter the market. 

“We can see positive changes and results in completing Vietnam’s regulations and law,” said Nicolas Audier, co-chairman of the chamber. The Whitebook also describes Vietnam as having one of the strongest economic growth rates in the world over the past two decades, with average annual GDP growth of 6.4 percent in the 2000s, transforming Vietnam “from one of the poorest countries on earth to one of middle-income status.”

However, Eurocham also highlights some areas where Vietnam needs further improvement, including basic requirement factors, higher education and innovation. The book sources a World Economic Forum report to point out the 16 most problematic factors for doing business in Vietnam, with the top three being access to financing, an inadequately educated workforce and corruption.

The chamber also gives an overview and detailed recommendations for issues that remain in Vietnam that are acting as barriers between European businesses and their Vietnamese counterparts, such as corporate organization, human resources, taxation and public-private partnerships.

EuroCham believes that Vietnam will continue to develop and integrate more deeply on an international level, especially in 2018 when the EU-Vietnam Free Trade Agreement (EVFTA) is expected to be ratified and implemented.