VINACHEM

Real change demands practical steps. From tax relief to site clearance reform, Vietnam is taking action to support enterprise growth.

According to feedback from the business community, regulatory and business environment reforms must continue to be deepened. To maintain momentum, the government, ministries, and local authorities must engage in meaningful dialogue, proactively identify challenges, and create favorable conditions for enterprises. Easing burdens on businesses is ultimately easing the burden on the entire economy.

Empowering production capacity

The 2024 Provincial Competitiveness Index (PCI) reveals that 54% of businesses struggle with access to credit, 49% are concerned about market demand, 38% are impacted by market volatility, and 20% find it difficult to secure partners. These obstacles span a wide range of sectors and legal frameworks.

Nguyen Van De, Chairman of the Vietnam Association of Private Hospitals, pointed out that the 2024 Land Law applies auction and bidding procedures for all private healthcare projects, regardless of whether they serve public or commercial purposes. This contradicts Politburo Resolutions No. 20-NQ/TW and 68-NQ/TW, which aim to encourage socialized investment in healthcare. As a result, businesses are discouraged from investing in healthcare projects, especially in remote areas.

To address this, De proposed: “The Land Law should be amended to allow land allocation or lease without auction for public health projects, with the requirement to commit to community service. The Investment Law should clearly define 'socialized healthcare projects' to ensure they qualify for preferential treatment, and exempt such projects from tendering procedures, replacing them with professional capacity assessments. These adjustments would foster a more open and transparent legal and business environment for the private sector to invest in healthcare, thereby supporting the development of a sustainable national healthcare system that meets public needs.”

Tackling regulatory barriers

Nguyen Ngoc Thong, CEO of Truong Giang Electric Joint Stock Company, noted that many current regulations impose unnecessary or unrealistic requirements. Vietnam spends approximately $1 billion annually to import high-, medium-, and low-voltage electrical switchgear, even though domestic manufacturers offer equivalent, internationally certified products (e.g., KEMA/ASTA) at more competitive prices. However, they are not prioritized in procurement due to biased bidding documents.

Many bid specifications are tailored for foreign brands, sidelining domestic products. Additional hurdles include redundant testing requirements and the non-recognition of local certifications, forcing businesses to undergo expensive international validation. Although the 2023 Law on Bidding stipulates a preference for domestic products, vague criteria in bidding documents prevent fair competition.

Truong Quang Hiep, Deputy Director of External Affairs at Hoa Phat Dung Quat Steel Joint Stock Company (Quang Ngai), shared that one of the biggest challenges businesses face is land access due to persistent obstacles in compensation and site clearance. Delays in delivering cleared land affect project timelines, licensing, and investment plans. Hoa Phat hopes that local authorities can address these challenges swiftly, shorten licensing periods, and accelerate compensation and resettlement procedures. This would not only improve local socio-economic development and job creation but also enhance domestic production capacity.

The key to sustainable growth

To transform the business environment into a true engine of sustainable growth, Vietnam must shift from “resolving difficulties” to “proactively enabling business.” Maintaining the momentum of institutional reform, increasing direct dialogue with enterprises, and implementing timely solutions will enhance policy effectiveness. In practice, reforms in taxation, customs, and environmental regulation are already helping businesses.

Recently, the government issued Decree No. 82/2025/ND-CP to extend deadlines for value-added tax (VAT), corporate income tax, and land rent payments for 2025. The National Assembly has also passed a resolution to extend VAT reductions through the end of 2026. Starting May 5, 2025, the Ministry of Industry and Trade became the sole agency responsible for issuing certificates of origin (C/O), integrating this process with the national e-customs system and digital signatures, reducing processing time from days to hours.

This move has been applauded by the business community as a major step forward, aligning with the government’s goal in Resolution No. 154/NQ-CP (May 31, 2025), which aims to conduct 100% of administrative procedures online, cutting time and costs while increasing transparency and accountability.

Local governments: The engine of reform

According to Nguyen Hai Truong, Deputy Director of the Dung Quat Economic Zone and Industrial Parks Management Board (Quang Ngai), local governments play a pivotal role in translating central policies into practical action. This includes investing in infrastructure, simplifying administrative procedures, and actively supporting enterprises.

In Quang Ngai, authorities have rigorously and consistently reviewed regulatory documents and reformed procedures under a “one-stop shop” and online public service model. This has addressed delays, clarified investment certification processes, and ensured that newly issued procedures are simple, comprehensible, and easy to implement.

Pham Tan Cong, President of the Vietnam Chamber of Commerce and Industry (VCCI), emphasized that both central and local governments must firmly implement directives under Resolution No. 68-NQ/TW of the Politburo. The government should accelerate oversight and issue timely guidance to promote institutional reform and streamline procedures. It must also reignite the spirit of innovation and leadership across all levels of public administration, fostering a more supportive business environment.

There remains enormous potential for administrative reform and improvement of Vietnam’s business and investment climate. This requires genuine cooperation between the government and the business community, facilitated through regular, transparent, and effective dialogue to bridge the gap between policy and practice.

Only then can the business environment become a truly solid foundation, helping Vietnam achieve economic growth of over 8% this year and double-digit growth in the near future.