The business community expects that solutions to enhance the business environment according to the spirit of Resolution 02/NQ-CP in 2024 will be implemented effectively, becoming a fulcrum for businesses to recover and develop.

A fulcrum for businesses to recover

Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Research and Management (CIEM), said that the Government has included the task of reforming the business environment into a provision of Resolution 01/NQ- CP in 2023 to affirm that the business environment is important to socio-economic development. However, because it is only one task of Resolution 01/NQ-CP, the level of interest and motivation for reform of relevant parties is not high compared to previous years. In 2024, the economy is forecast to continue recovery more clearly with both favourable and challenging factors, so efforts to reform the business environment must be accelerated to strengthen confidence and create motivation for enterprises.

The reasons for the Government to restore Resolution 02/NQ-CP in 2024 are to stimulate reform motivation of ministries, sectors and localities, foster the business environment, facilitate the operations of enterprises, and contribute to promoting and restoring economic development.

This is the 10th year of the resolution on improving the business environment and enhancing national competitiveness, with the building of specific goals and solutions to achieve these goals.

In Resolution 02/NQ-CP in 2024, the Government continues to determine reform goals according to international practices, which are also suitable to the context of this year. In particular, the goal of increasing the number of newly established businesses by at least 10% and reducing the number of businesses withdrawing from the market by less than 10%, compared to 2023, is a challenging target.

In 2023, the country had more than 200,000 newly established businesses and businesses resuming operations, but more than 170,000 businesses withdrew from the market. In the first two months of 2024, the country had more than 41,000 businesses established and businesses returning to operation, but the number of businesses withdrawing from the market soared very high, up to nearly 63,000.

These are indicators of a decline in investment and business demand, but they also show the declines in the resilience of businesses and the unattractiveness of the business environment. Therefore, solutions to improve the business environment and facilitate production and business activities become more urgent to help businesses overcome difficulties and improve competitiveness.

According to the Vietnam Federation of Industry and Commerce, businesses assess that the results of improving the business environment are gradually positive over time. The Government continues to have many activities to foster and enhance the business environment through resolutions and directives. In addition, ministries, sectors and localities are still cutting down and simplifying regulations related to business, according to Government Resolution 68/ NQ-CP 2020.

However, recently, there have been no proposals to cut business conditions with breakthrough results, while some newly drafted documents add new barriers to businesses. In addition, many problems reported by businesses have not been thoroughly resolved.

Long-term solutions needed

Dr Nguyen Minh Thao, Head of CIEM’s Business Environment and Competitiveness Research Department, said that the re-issue of Resolution 02/NQ-CP promotes reform, and the effective implementation of the Resolution is what the business community is looking for. Accordingly, regular and continuous direction from the Government and the Prime Minister is necessary to create pressure to boost the reform process, but the proactive and direct direction of the heads of ministries and sectors is also crucial to determine the success of this process. Besides, the reform process cannot lack the role of businesses as well as the supervision of relevant parties.

Sharing the successful experience of a locality that is a highlight in reforming the business environment and attracting investment in recent years, Nguyen Phuong Bac, Director of the Institute of Socio-Economic Development Research of Bac Ninh Province, said that building a plan to improve the business environment requires specific tasks. The province should address the shortcomings as assessed by the Provincial Competitiveness Index (PCI) report and the District and Department Competitiveness Index (DDCI), clarify the responsibilities of heads of units, and build particular tasks and goals that can be measurable and achievable in a specific period.

To effectively implement Resolution 02/NQ-CP in 2024, Dr. Nguyen Phuong Bac emphasised the need for a long-term vision of the issued policies. Specifically, it is necessary to continue to extend the cut in VAT on goods and services and supplement policies to reduce corporate income tax and personal income tax to support businesses and people in difficult times, thereby improving market purchasing power and stimulating production and consumption.

The Ministry of Planning and Investment said it will continue close coordination with ministries, sectors, localities, the business community and relevant parties to promote the effective implementation of Resolution 02/NQ-CP.

“When receiving recommendations from one or two businesses related to policy and legal regulations, the ministry will study it, but if more than three businesses have petitions, the Ministry will consider it a policy task,” said Deputy Minister of Planning and Investment Tran Duy Dong.