EuroCham keeps up the momentum at the 2024 Vietnam Business Forum

On 19 March, the annual Vietnam Business Forum (VBF), themed “Pioneer FDI enterprises implementing the Green Growth Strategy” took place in Hanoi. The event saw attendance from Prime Minister Pham Minh Chinh, Minister of Planning and Investment Nguyen Chi Dung, ministerial representatives, diplomatic missions, international organizations, business associations, FDI enterprises, and economic experts.

The VBF fosters ongoing dialogue between the Vietnamese government and the business sector to improve the business environment, stimulate private sector growth, and support sustainable development.

At the forum, EuroCham Vietnam Chairman Gabor Fluit articulated the European business community’s ongoing challenges when operating in Vietnam and recommendations for resolving them. 

Key recommendations from EuroCham included:

• Green Growth Strategies: Emphasis on waste management, public awareness, and innovations against plastic pollution. Initiatives proposed include targeted tax incentives for green practices and recycling plastic in road construction to foster a circular economy.
• Green Energy Transition: Addressing the slowdown due to procedural ambiguities, infrastructure challenges, and financing shortages. 
• Extended Producer Responsibility (EPR): Advocating for a two-year, penalty-free phase-in period from 2024 to ensure a balance between economic growth and environmental sustainability without overwhelming businesses.
• Vietnam Environment Protection Fund Transparency: Calling for open disclosure of fund allocations to ensure accountability and environmental protection.
• Pharma Law Revision for 2024: Highlighting the challenges faced by pharmaceutical sector members under the foreign-invested enterprise (FIE) model.
• Tender Law Guidance: The urgent need for guidance on implementing the “self-pay channel” in public hospitals for better healthcare outcomes.
• Medical Device Import Licenses: Addressing the backlog and upcoming expirations to avoid healthcare delivery disruptions.
• Tax Policy Consistency: Adherence to the EU-Vietnam Free Trade Agreement principles with suggestions for a hybrid Special Consumption Tax system for wine and spirits, and a freeze on SCT hikes until 2027.
• Visa Policy Enhancements: Proposals to extend visa exemptions and introduce special visas for broader international engagement.

Click here to read Mr. Fluit’s full speech. 

Our Board Member and Vice-Chair of the Green Growth Sector Committee, Stuart Livesey, also made an insightful speech at the event. 

In his address, Mr. Livesey focused on:

• The findings of an impactful Vietnam Business Forum ESG survey, co-organized with EuroCham’s Green Growth Sector Committee and other allied chambers.
• The necessity of embedding ESG principles into business strategies, reflecting the global shift towards sustainable and responsible governance

Key survey insights highlighted:

• Financial Commitment to ESG: Over 50% of companies have earmarked budgets for ESG initiatives, underscoring a serious commitment to sustainable growth.
• Confidence in Vietnam’s Green Future: Just 1/4 of businesses are confident in Vietnam’s dedication to sustainable and green development. Half believe government strategies offer limited to moderate support for meeting their sustainability objectives.

We encourage you to read the full report!  Click here to read it in English, or here to read it in Vietnamese.

Vice-Chairman Dominik Meichle, speaking on behalf of Bosch Vietnam, EuroCham’s Gold-level Corporate Partner, underscored Bosch’s role as a leading investor in Vietnam, committed to working with the government on human capital development, combating counterfeit products, streamlining permissions and licenses, and improving regulatory frameworks.

A speech delivered by Dutch Business Association Vietnam Chairman Alexander Koch on behalf of Heineken Vietnam, a Gold-level Corporate Partner of EuroCham. He shared insights on adopting green growth practices, demonstrating how sustainable strategies can be woven into business operations to support Vietnam’s green growth goals.

During his comments, Prime Minister Pham Minh Chinh commended the FDI community for its role in overcoming challenges and committed to supporting economic and green growth. He emphasized a collaborative spirit, promising a conducive business environment, development breakthroughs, and enhanced cooperation with investors. 

Minister of Planning and Investment Nguyen Chi Dung spoke about the VBF’s significance against the backdrop of the foreign-invested sector’s growing influence on the national economy. Acknowledging green growth as vital for Vietnam’s future, the minister reiterated the government’s commitment to economic restructuring and innovation, aiming for a carbon-neutral economy.

On top of that, our organization received an award from Minister Nguyen Chi Dung for our exceptional contributions to facilitating FDI in Vietnam.

Vice-Chairs Jean-Jacques Bouflet and Torben Minko, along with Board Members Søren Pedersen and Tri Mai Hoang, were also on hand to represent EuroCham.

Click here to access more info and documents from the VBF, including the event’s report, which contains our EuroCham position paper.

Our sincere thanks to the Vietnam Business Forum, the Prime Minister and the Ministry of Planning and Investment for another highly productive VBF. We are already anticipating the 2025 VBF and cannot wait to see what progress is made toward improving Vietnam’s business environment between now and then.