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Businesses eye extra incentives to boost productivity

Update: June, 30/2014 - 08:28

In the survey, foreign businesses gave high ratings to Viet Nam's political stability and better business environment, saying these were important factors, which determined whether they should carry out investment projects here.— VNA Photo

HA NOI (VNS) — Domestic and foreign businesses want incentives from the Government and local authorities for better operations, according to a recent survey released at a seminar in Ha Noi on Thursday.

Nearly 1,500 firms that responded to the survey have expressed the hope that they would receive tax incentives, financial support and opportunities to access loans, according to Patrick Gilabert, a representative from the United Nations Industrial Development Organisation (UNIDO).

The findings revealed that with incentives, foreign businesses have operated more productively, tended to use a large number of workers, achieved higher productivity and made more investments than local peers.

In the survey, foreign businesses gave high ratings to Viet Nam's political stability and better business environment, saying these were important factors, which determined whether they should carry out investment projects here.

At present, incentives attracting FDI in Viet Nam have played an important role in the period of economic reforms including financial incentives in taxes that attracted the attention of foreign investors. Many foreign investors have been able to expand their businesses to enjoy preferential tax benefits.

However, that is not the decisive factor in volume and quality of foreign capital, according to the report.

Therefore, the report recommended, Viet Nam should be careful while building mechanisms for incentives and implementing and supervising impacts from the incentives.

The action would help the nation to choose and manage FDI in sectors that the economy needed.

Deputy head of the Foreign Investment Agency under the Ministry of Planning and Investment, Dang Xuan Quang, called for relevant agencies to work together to introduce incentives suitable for international practices to attract more foreign investors in Viet Nam.

The report was studied in nine cities and provinces including Ha Noi, Hai Phong, Bac Ninh, Vinh Phuc, Da Nang, HCM City, Ba Ria Vung Tau, Binh Duong and Dong Nai. — VNS

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