EuroCham voices business community priorities at key economic meeting with the Ministry of Planning and Investment (MPI)

On 4 June 2024, industry representatives convened at the Ministry of Planning and Investment (MPI) office in Hanoi for an economic discussion chaired by MPI Deputy Minister Tran Duy Dong. The meeting assessed Vietnam’s economic performance from January to May 2024 and identified challenges and solutions.

While economic conditions have improved, participants highlighted obstacles such as a competitive market driven by advanced technology requirements, low consumption demand, and new green regulations from the US and EU. High logistics costs, skilled labour shortages in textiles and electronics, and VAT refund complications were major concerns.

EuroCham Vice-Chair Minh Nguyen emphasised Vietnam’s attractiveness to European investors, citing EuroCham’s 2024 Business Confidence Index. However, he underscored the need to address persistent issues around temporary imports, bonded warehouses, renewable energy accessibility, and investment support policies.

EuroCham advocated involving industrial parks as third-party providers to extend renewable energy solutions to SMEs. Regarding the proposed investment support fund, established in the context of Vietnam offsetting Global Minimum Tax impacts, EuroCham remains open to contributing comments before the draft legislation advances.

The draft investment support fund proposal is still  in progress, with the MPI encouraging participants to submit further  comments for consideration.

Other key issues raised included exorbitant logistics fees, skilled labour deficits, administrative hurdles, customs complications, and tax refund delays. 

Deputy Minister Dong acknowledged the valuable contributions and the government’s openness to feedback.