Presentation is loading. Please wait.

Presentation is loading. Please wait.

VBF V ietnam B usiness F orum Sin Foong Wong IFC Country Manager June 2007.

Similar presentations


Presentation on theme: "VBF V ietnam B usiness F orum Sin Foong Wong IFC Country Manager June 2007."— Presentation transcript:

1 VBF V ietnam B usiness F orum Sin Foong Wong IFC Country Manager June 2007

2 2 Agenda n Overview of VBF n Mandate n Structure and operation n Participants n Key policy areas/themes n VBF May 30, 2007- Issues and Resolutions n Going forward

3 3 Overview of VBF n Background: established in 1997 as a result of the Vietnam Consultative Group (CG) Meeting in Tokyo n Objectives:  To improve the investment and business environment in Vietnam  To strengthen the role and voice of the private sector in Vietnam n Method: to promote ongoing, structured policy dialogue between the business community and the Government

4 4 Note: Working relationship Establishing Supporting VBF structure World Bank (WB) (Deputy) Prime MinisterConsultative Group (CG) Vietnam Business Forum (VBF) International Finance Corporation (IFC) M&D Working Group Inter-Ministerial Team (IMT) State Bank of Vietnam (SBV) Ministry of Finance (MOF) & SSC Vietnam National Administration of Tourism (VNAT) Ministry of Planning & Investment (MPI) VBF Secretariat Banking Working Group Capital Markets Working Group Infrastructure Working Group Tourism Working Group MOT/MOPT/ MOI Business Associations

5 5 Main business groups participating in the VBF Business Groups actively participating in the VBF activities: DOMESTIC  Can Tho Business Association (CBA)  Association of Garment, Textile, Embroidery, and Knitting (AGTEK)  Hanoi Young Business Association (HBA)  HCMC Association for Young Entrepreneurs (YBA)  Hanoi Union of Association of Industry and Commerce (HUAIC)  Vietnam Association of Financiers (VAFI)  Vietnam Chamber of Commerce and Industry (VCCI)  HCMC Computer Association (HCA)  HCMC Food and Foodstuff Processing Association FOREIGN  Eurocham  Auscham  Amcham  Singapore Business Group (SBG)  Canadian Chamber of Commerce (CanCham)  Korean Chamber of Commerce and Industry (KORCHAM)  Hongkong Business Association (HKBAV)  Japan Business Association (JBA)

6 6 Key areas/themes n Improve tax regime n Streamline registration/licensing/procedures n Unify investment incentives and protections n More equitable access to land and land use rights n Broad collaboration in a range of initiatives toward sustainable tourism development n Improve banking system and develop sustainable capital markets n Streamline legislative regime in infrastructure development n Enhance capabilities and private participation in 3 prioritized sectors: port, power and telecoms n Enhance skill labor quality and supply along with labor relations n Reduce obstacles associated with labour requirements and licensing

7 7 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.

8 8 VBF May 30 Business’s Perception on Business Environment n WTO accession => Business legislation being harmonized with international practices n More level playing field for all enterprises regardless of ownership How Vietnam should respond to and capitalise on its recent acession to the WTO?  Implementing the WTO commitments in a timely manner  Closer co-ordination between the government and business associations to adapt to the new rules and tap into the WTO benefits  Diseminating comprehensive information on WTO to frontline goverment officials to ensure proper and uniform implementation  Encouraging private sector participation in educaton and training to adress the shortage of human resources

9 9 VBF May 30 – Issues & resolutions Banking and Capital Market ISSUES n Upgrading Vietnamese banking regulations in line with WTO and international practices. n Recognition and application of international laws to Vietnamese court system in addressing cross-border banking transactions. n Further liberalization of forex transactions. n Strengthening inter-ministerial co- ordination to ensure capital market development and macroeconomic stability. n Clarifying regulation on subscription rights; Role of securities companies in underwriting; and possibilities for private companies to issue corporate bonds. RESOLUTIONS n 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. n 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. n 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.

10 10 VBF May 30 – Issues & resolutions Implementation of Vietnam’s WTO commitments ISSUES n Measures to offset subsidy removal in export manufacturing. n Use of WTO commitments as the floor, or minimum standard. n Detailed guidelines to implement the WTO commitments. n Clarification on the licensing for foreign trade branches, criteria distinguishing between foreign and local companies. n Impediment to import, export and distribution: “Economic Need Test” for foreign invested retailers, cumbersome re-registration requirements for representative offices. RESOLUTIONS n Measures to offset subsidy removal are under consideration. n Vietnam’s rules will prevail if they are more favorable than WTO commitments. n 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. n Existing enterprises only need to revise import/export rights if needed and re-register them with the MPI. n Commercial presence in branch form in certain areas e.g. distribution services, advertising, and logistics is no longer allowed.

11 11 VBF May 30 – Issues & resolutions Implementation of Investment and Enterprise Laws ISSUES  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: u Conditions applicable to projects in conditional business sectors. u Sales of shares in local companies to foreign investors. u Conversion of BCC into JVs or Joint stock companies. u Procedures for transferring shares or transferring a project. u Practicing certificate, company name, criteria for director, language used in official documents etc. RESOLUTIONS  Difficulties of businesses in implementation of the two laws were acknowledged.  A new Decree addressing the mentioned problems is under consultation and to be issued soon.  BCC conversion is not covered by the new Decree as related provisions in the EL and IL suffice  Specific conditions for certain areas of investment to be subject to specific laws and regulations governing those areas.

12 12 VBF May 30 – Issues & resolutions Others ISSUES 1.Port  Lack of sea port capacity to cope with increasing demand in the next few years post WTO entry.  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 planning and project approvals.  Bad practices, including broken contracts. RESOLUTIONS 1.Port  A number of licenses be granted to port developers recently.  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.

13 13 VBF May 30 – Issues & resolutions Others ISSUES 3. Mining  Reconsideration of Decision 67 on export tariff of minerals  More encouragement of FDI in the mining sector RESOLUTIONS 3. Mining  Decision 67 is to encourage the development of domestic processing capabilities.  Continued dialogue with the Government in mining issues to be held.

14 14 Going forward n Include fully domestic and regional investors n Improve position paper quality n Diversify forms of co-operation with the government, not just closed door meetings (e.g. workshops, surveys, research, publication) n Form Education & Training working group n Strengthen communication activities by finalizing the construction of new VBF Website n Coordinate closely with donor programs and CG agenda to implement necessary reforms

15 15 Contact VIETNAM BUSINESS FORUM SECRETARIAT C/o: IFC 63 Ly Thai To Hanoi Tel: +84 4 9342282 Fax: +84 4 9342289 E-mail: vbf@ifc.org Contact person Pham Lien Anh, VBF Secretariat www.vbf.org.vn

16 16 Thank you for your attention


Download ppt "VBF V ietnam B usiness F orum Sin Foong Wong IFC Country Manager June 2007."

Similar presentations


Ads by Google