PM-chaired meeting: Local private companies want barriers removed

By Toan Dao   April 29, 2016 | 05:00 pm GMT+7
PM-chaired meeting: Local private companies want barriers removed
Part of a Vinamilk's plant. Photo by VnExpress

Along with foreign investors, local private companies made various proposals at a meeting today between Prime Minister Nguyen Xuan Phuc, government officials and thousands of local and foreign companies, which aimed to clear barriers and improve the country's business environment.

Mai Kieu Lien, CEO of Vietnam’s listed largest dairy firm Vinamilk, asked the government to issue directions on the Law on Enterprises, continue administrative reforms, reduce the number of permits granted by ministries and sectors, explain the requirements for obtaining a permit, and coordinate ministries in the process of granting investment licenses and reviewing customs procedures. She also said she wanted the government to serve, not to manage enterprises, according to a statement on govenment's website. 

Vinamilk made a net profit of about $350 million in 2015, rising 28 percent year on year. Its total revenue last year hit $1.8 billion, up 14 percent against 2014.

A representative from the Vietnam Textile and Garment Association asked the government to modify the masterplan for the development of Vietnam’s textile and garment industry as it is out of date. The development strategy must be in line with planning for industrial parks to ensure wastewater treatment conforms with regulations and the environment is protected.

The association also said some existing environmental standards in the textile and garment industry should be changed as it is not necessary to apply strict environmental requirements for all plants in the industry. For example, a garment factory discharges less wastewater than a textile or dyeing plant. 

Exports of Vietnam’s textiles and garments hit $22.8 billion in 2015, up 9.1 percent from 2014, customs data showed.

A representative from low-cost carrier VietJet asked the government to reduce ‘prejudice’ against private carriers and create favorable conditions for private carriers to carry out administrative procedures and necessary services at airports.

The Vietnam Association of Small and Medium Enterprises asked the government and the National Assembly to build and pass a law to support SMEs, set up a national start-up program and encourage investors to build warehouses for SMEs. The government should support SMEs by reducing taxes, re-financing interest, setting incentives for SMEs to take part in production lines and encouraging the development of well-established industrial parks, while accelerating administrative reforms and applying IT in government services.

A representative from local retailer Saigon Co.op asked the government to safeguard domestic retailers in accordance with global practices, set up a strategy to develop Vietnam’s retail market, build a group of 20 competitive Vietnamese retailers, improve regulations on M&As and issue policies to support retailers.