Vietnam Business Forum Mid-term 2013 kicks off in Hanoi

The Vietnam Business Forum Mid-term 2013 kicked off in capital Hanoi Monday under the theme"New stage in economic restructuring: from agenda to actions".

Representatives of domestic and foreign business communities in Vietnam attended the event with much hope put for further renewals by the Vietnamese government, reported the local Vietnam Investment Review.

David Whitehead, president of the Australian Business Association's Hanoi-based office, presented participants with two major questions, namely the reason for declining flows of foreign direct investment (FDI) to Vietnam, and how the Vietnamese government will do to increase this source of investment to the country.

According to David, other ASEAN members like Indonesia, Thailand, Cambodia and Myanmar are emerging as attractive destinations for foreign investment, resulting in more rivals competing to one another in the region. The global economic downturn may impact the FDI amount; however the total FDI worldwide has increased over the past years.

Unless Vietnam provides a more favorable investment environment, the FDI to the country would likely continue to decrease, David warned.

Vu Tien Loc, president of Vietnam Chamber of Commerce and Industry, suggested the government be consistent in maintaining the set priorities, including stabilizing the macro economy, curbing inflation, and making growth at an appropriate level.

The government should stand firm against pressure on a quick growth at present, but unstable in the future, Loc said.

Meanwhile, Korcham President Kim Jung In said to facilitate Vietnam's economic recovery speed and open new opportunities for the private sector, the Vietnamese government needs to continue its pledge in boosting the process of restructuring and equitizing state-owned enterprises (SOEs) through tough measures.

Since the foreign investors are allowed to buy shares from the SOEs, the equitization process must be transparent and clear so that it promotes mergers and aquitision (M&A) transactions, suggested the Korcham president.