EuroCham welcomes IMF Delegation to discuss Vietnam’s economic landscape

On Wednesday, 12 June 2024, EuroCham Vietnam hosted a delegation from the International Monetary Fund (IMF) to discuss foreign direct investment trends, business environment, and labour market conditions in Vietnam.

EuroCham representatives included:

• Vice-Chairman in charge of Advocacy Jean-Jacques Bouflet
• Treasurer Olivier Rousselet
•  Board Member Thue Thomasen
• Advocacy Manager Diep Truong

The IMF delegation was led by Mission Chief Paulo Medas and Regional Resident Representative Jochen Schmittmann, accompanied by senior financial and economic experts.

Mr. Bouflet presented EuroCham’s perspectives on FDI flows, highlighting the European business community’s positive outlook on Vietnam’s economy. However, he also raised concerns voiced by EuroCham members regarding:

• Administrative processes for work permits
• Airport congestion
• The need for improved regulatory frameworks and clarity for green transition initiatives, including for Power Development Plan 8 (PDP8), Draft Power Development Plan (DPPA), and rooftop solar power policies

Regarding the labour market, EuroCham highlighted the Vietnamese workforce’s high productivity as a key competitive advantage. However, challenges were noted, including significant investment needed for capacity training, especially in technical fields. Employee retention issues, particularly after Tet holiday, were also discussed. EuroCham emphasised the need for addressing skills gaps and developing local management talent to further enhance Vietnam’s labour market competitiveness.

EuroCham acknowledged the Vietnamese government’s efforts to involve the private sector in decision-making processes through initiatives such as the Advisory Council for Administrative Procedure Reform (ACAPR) and consultation workshops. These platforms allow businesses to provide input on regulatory changes, fostering a more collaborative approach to economic governance and improving the overall business environment. 

The IMF delegation, as part of their annual member country consultations, sought EuroCham’s insights to enrich their economic analysis of Vietnam. These perspectives from the European business community will contribute to the IMF’s policy recommendations for the Vietnamese government, ensuring a more comprehensive understanding of the country’s economic landscape and challenges.

This meeting provided a valuable platform for EuroCham to voice our members’ concerns and perspectives, contributing to a comprehensive understanding of Vietnam’s economic landscape.