Prime Minister Phạm Minh Chính met with ASEAN businesses. —VNA/VNS Photo Dương Giang

Compiled by Vũ Hoa

In a series of high-level meetings spanning late February to early March 2025, Prime Minister Phạm Minh Chính engaged in discussions with key business leaders from the US, Europe, Japan, China, South Korea and ASEAN, reinforcing the image of a forward-thinking Vietnamese Government that is deeply committed to fostering a thriving business environment.

This series of dialogues underscores the Government's efforts to realise the ambitious target of a 8 per cent growth rate this year, creating a strong foundation for a double-digit growth rate following years.

These conversations also reflect the Vietnamese Government's unwavering dedication to working alongside businesses, tackling obstacles and crafting solutions for continued development in the years ahead.

As of today, the business community is integral to Việt Nam's socio-economic development. Businesses contribute about 60 per cent of the country's GDP, account for 98 per cent of total export turnover and provide jobs for roughly 85 per cent of the workforce.

Over the past four decades since the launch of Đổi mới (Renewal), Việt Nam has witnessed extraordinary growth in the number of businesses, with more than 940,000 active companies, over 30,000 cooperatives and five million business households. Many of these companies have emerged as regional and global players, affirming Việt Nam's expanding influence in global supply chains.

In his dialogues with business leaders, the PM has consistently praised the resilience and achievements of private enterprises, recognising their role as a pillar of the economy. The Government is actively driving transformative projects, from the ambitious North-South high-speed railway and nuclear power initiatives to breakthroughs in science and technology, digital transformation and the exploration of new development spaces such as underground, maritime and even outer space. The PM has encouraged businesses to propose innovative policy mechanisms, positioning them at the heart of these pioneering projects.

This inclusive approach is resonating strongly with both domestic and international enterprises, which acknowledge the Government’s transparency, fairness and commitment to creating a robust business environment. The PM's openness and pro-business stance have gained particular praise from the international business community.

These are demonstrated by the fact that 56 per cent of Japanese enterprises plan to expand operations in Việt Nam, underscoring the country’s robust economic momentum. In 2024, over 60 per cent of Japanese businesses reported profits in Việt Nam, the highest level in the past five years.

Similarly, South Korean enterprises, with nearly 10,000 operating in the country, have been instrumental in creating over 900,000 jobs and contributing to Việt Nam’s continued economic growth.

These results underscore the growing significance of Việt Nam in global supply chains and the strengthening of bilateral economic ties between Việt Nam and major trade partners.

In 2025, Vietnam's economy stands at a critical juncture, characterized by a landscape of significant opportunities and challenges. The prevailing economic competition, political tensions, and escalating trade conflicts among nations have exerted profound effects on the global supply chain dynamics and the policy frameworks of individual countries. This scenario underscores the pressing need to revamp the growth model, enhance competitiveness, and pivot towards sustainable development strategies to navigate the complexities of the contemporary economic environment effectively.

This year, a key development is the Government’s decision to assign specific growth targets to all localities, ministries, State-owned enterprises and key sectors. This is a strategic shift aimed at breaking free from average growth, which, if continued, would hinder the country from reaching its ambitious long-term development goals.

These goals include becoming a developing country with modern industry and upper-middle income by 2030, marking the 100th anniversary of the founding of the Party, with a GDP per capita estimated at US$7,500. By 2045, on the 100th anniversary of the founding of the Socialist Republic of Việt Nam, the goal is to be a developed, high-income country with a GDP per capita exceeding $12,535.

In this context, the Government is committed to tackling the challenges businesses face, particularly addressing institutional obstacles, which are seen as both the "bottleneck of the bottleneck" and the "breakthrough of the breakthrough."

To address the concerns and proposals from businesses, the PM has called for prompt action from ministries, branches and local authorities, insisting on the five 'clear' principles: clear people, clear tasks, clear timelines, clear responsibility and clear outcomes.

At the same time, the Vietnamese Government has reaffirmed its dedication to economic reform, designating 2025 as a pivotal year for promoting policies that support businesses, particularly small and medium-sized enterprises (SMEs), which are the backbone of the national economy.

The Government has introduced new support policies for the business community, including tax reductions and expanded preferential loan packages for start-ups and high-tech industries. These measures include a 20 per cent reduction in corporate income tax for SMEs over the next three years, as well as programmes that facilitate access to preferential loans for innovative businesses to help them develop products and expand their markets.

Furthermore, the Government is prioritising the promotion of digital and management skills training programmes for young entrepreneurs and workers, aiming to equip them with the tools needed to succeed in the evolving business landscape.

In these challenging times, the Government's policies and actions clearly reflect a strong commitment to economic growth and development, ensuring that the country stays on track to meet its targets. Additionally, these efforts highlight the Government’s openness and its collaborative relationship with both domestic and international businesses, working together to overcome challenges and achieve the goal of sustainable development and breakthroughs in the new era. — BIZHUB/ VNS

Decisively cutting administrative procedures to facilitate businessDuring a recent working session with representatives of the Party Central Committee’s Commission for Policies and Strategies, Party General Secretary Tô Lâm urged greater efforts to position Việt Nam's investment environment among the top three in ASEAN within the next two to three years.To create an attractive business environment, at least 30 per cent of the time and costs for administrative procedures must be cut, and unnecessary business conditions removed, as directed by the Party General Secretary.According to Associate Professor Dr Nguyễn Thường Lạng, an economic expert, Party chief Lâm’s strong directive on simplifying and reducing administrative procedures is a positive signal for businesses, making it easier for them to grow further in the future.Reducing administrative processing time by at least 30 per cent will help businesses save time and resources, thus improving operational efficiency and competitiveness. Meanwhile, removing at least 30 per cent of unnecessary business conditions will create a more open business environment, attract new market entrants and foster competition.Businesses will find it easier to access international capital and investment, thus growing stronger, Lạng said.Eric Johnson, chairman of American Chamber of Commerce (AmCham) in Hà Nội, said US businesses applaud Việt Nam's efforts in fulfilling its commitments, streamlining the political apparatus, restructuring ministries and sectors, and simplifying administrative procedures.The business community also calls for more decisive efforts in cutting and simplifying administrative procedures to improve the business environment.Ngô Minh Phương, director of Vit Trườn Co., Ltd., said that overlapping and impractical management policies add more challenges for enterprises. He proposed amending and supplementing regulations on product quality management to align with international standards, shifting from pre-inspection to risk-based post-inspection, and speeding up the digitalisation of administrative procedures.Meanwhile, Đặng Thị Kim Oanh, chairwoman of Kim Oanh Group, suggested the State address obstacles for businesses and support them in social housing investment, emphasing the need to shorten processing times, simplify procedures to attract investors, lower mortgage interest rates and extend loan terms. VNS