entrepreneurship for new trade agreements

449 Pages·2014·6.01 MB·English

MPI

MINISTRY OF PLANNING

& INVESTMENT

Annual Vietnam Business Forum 2014

ENTREPRENEURSHIP FOR
NEW TRADE AGREEMENTS

Hanoi, December 2, 2014
DISCLAIMER

The Vietnam Business Forum (VBF) is a structured and ongoing policy dialogue between the
Vietnamese Government and the local and the foreign business community for a favorable
business environment that attracts private sector investment and stimulates sustainable
economic growth in Vietnam.

This publication was created for the Annual Vietnam Business Forum on December 2, 2014.

The conclusions and judgments contained in this publication, as well as presentations made by
businesses’ representatives at the Forum, should not be attributed to, and do not necessarily
represent the views of, the VBF Consortium Board, or the VBF Secretariat, or its co-chairing
institutions including Vietnam’s Ministry of Planning and Investment, the World Bank group, and
IFC - a member of the World Bank group. These parties do not guarantee the accuracy of the
data in this publication and the aforesaid presentations, and accept no responsibility for any
consequences of their use.

This publication is distributed subject to the condition that it shall not, by way of trade or
otherwise, be lent, re-sold, hired out, or otherwise circulated on a commercial basis.
TABLE OF CONTENTS

TENTATIVE AGENDA

Section I: REVIEW OF INVESTMENT CLIMATE
1.1. Perceptions by Foreign & Local Business Associations/Chambers

Section II: BANKING AND CAPITAL MARKETS
Main discussions: Financial Market Reforms and State-Owned Enterprises (SOEs) Reforms

2.1. BANKING
2.1.1. Position paper of the Banking Working Group
2.1.2. Banking progress report

2.2. CAPITAL MARKETS
2.2.1. Position paper of the Capital Markets Working Group – Privatization of SOEs
2.2.2. Capital markets progress report
2.2.3. Discussion points with the State Securities Commission of Vietnam on capital markets
issues
2.2.4. Meeting notes with the State Securities Commission of Vietnam on October 31, 2014

Section III: INVESTMENT AND TRADE
Main discussions: Administrative Procedures Reforms and Development of Private Sector

3.1. ADMINISTRATIVE PROCEDURE REFORMS
3.1.1. Review of administrative procedure reform in the business sector

3.1.2. EDUCATION
3.1.2.1. Position paper regarding Decree 73 on foreign investment in education & training
(Decree 73)
3.1.2.2. Discussion points with Ministry of Education and Training on Decree 73
3.1.2.3. Meeting notes with Ministry of Education and Training on Decree 73 on August 26, 2014

3.1.3. LAND
3.1.3.1. Position paper on licensing process in land sector
3.1.3.2. Land progress report
3.1.3.3. Position paper on land issues
3.1.3.4. Comments on draft Law on Residential Housing
3.1.3.5. Comments on the draft Law on Real estate Business

3.2. DEVELOPMENT OF PRIVATE SECTOR
3.2.1. Position paper of the Investment and Trade Working Group
3.2.1.1. Investment and trade progress report

3.2.2. TAX
3.2.2.1. Position paper of the Tax Working Group
3.2.2.2. Tax progress report
3.2.2.3. Discussion points with Ministry of Finance on tax-related issues
3.2.2.4. Meeting notes with Ministry of Finance on tax-related issues on August 19, 2014
3.2.3. CUSTOMS
3.2.3.1. Position paper of the Customs Working Group
3.2.3.2. Customs progress report
3.2.3.3. Comments on the draft Circulars guiding the implementation of the new Customs Law

3.2.4. POWER AND ENERGY
3.2.4.1. Position paper of the Power and Energy Sub-working group
3.2.4.2. Power and Energy progress report

3.2.5. AUTOMOTIVE
3.2.5.1. Position paper of the Automotive Working Group
3.2.5.2. Discussion points with the National Assembly’s Finance and Budget Committee on tax
policies and investment incentives to automotive industry in Vietnam
3.2.5.3. Meeting notes with the National Assembly’s Finance and Budget Committee on tax
policies and investment incentives to automotive industry in Vietnam

3.2.6. INVESTMENT LAW (AMENDED)
3.2.6.1. Meeting notes with the National Assembly’s Economic Committee on draft Investment
Law (amended)
3.2.6.2. Comments and recommendations on draft Investment Law (amended)

3.2.7. DRAFT ENTERPRISE LAW (AMENDED)
3.2.7.1. Comments and recommendations on draft Enterprise Law (amended)

Section IV: EMPLOYMENT, EDUCATION AND TRAINING
Main discussions: Development of Vietnamese Workforce

4.1. EMPLOYMENT
4.1.1. Position paper of the Human Resources Sub-working group
4.1.2. Human resources and employment progress report

4.2. EDUCATION AND TRAINING
4.2.1. Position paper of the Education and Training Working group
4.2.2. Education and training progress report

Section V: REPORTS FROM OTHER WORKING GROUPS

5.1. AGRIBUSINESS
5.1.1. Position paper of the Agribusiness Working Group
5.1.2. Comments on draft circular on the implementation of a number of articles relating
inorganic fertilizer

5.2. GOVERNANCE & TRANSPARENCY
5.2.1. Position paper of the Governance & Transparency Working group

5.3. INFRASTRUCTURE
5.3.1. Infrastructure progress report
5.3.2. Comments of draft PPP Decree

5.4. MINING
5.4.1. Position paper of the Mining Working group
5.4.2. Mining progress report
5.4.3. Comments on the draft Circular amending Circular 105 on royalties
5.4.4. Comments on environmental protection fee
5.5. TOURISM
5.5.1. Position paper of the Tourism Working Group
5.5.2. Tourism progress report

Section VI: APPENDIX

6.1. Policy recommendations of Vietnam Chamber of Commerce and Industry from July to
October 2014
6.2. Summary notes of Midterm Vietnam Business Forum – June 2014
ANNUAL VIETNAM BUSINESS FORUM 2014
Entrepreneurship for New Trade Agreements

Time: 7:00 – 13:30, Tuesday, December 2, 2014
Venue: Song Hong Meeting Room, Sheraton Hotel, K5 Nghi Tam, No. 11 Xuan Dieu Street, Hanoi

TENTATIVE AGENDA

7:00 – 8:00 Registration

Introduction

Opening Remarks

8:00 – 8:20  Ministry of Planning and Investment – H.E. Mr. Bui Quang Vinh, Minister
 International Finance Corporation – Mrs. Wendy Werner, Practice
Manager, Trade and Competitiveness, EAP

1
 Vietnam Business Forum Consortium – Mrs. Virginia Foote, Co-Chairman
N
O
I
S
S
E Review of Investment Climate - Goals to Fulfill
S
1. Vietnam Chamber of Commerce and Industry – Mr. Vu Tien Loc, President
2. American Chamber of Commerce – Mr. Gaurav Gupta, Chairman
3. European Chamber of Commerce – Mr. Tomaso Andreatta, Vice Chairman
8:20 – 8:50
4. Korea Chamber of Business – Mr. Kim Jung In, Chairman
5. Japanese Business Association – Mr. Shimon Tokuyama, Head of Business
Forum Committee
6. Canadian Chamber of Commerce – Mr. Antony Nezic, President

1. Financial Sector and SOEs Reforms - Next Steps
 Banking Reforms – Mr. Dennis Hussey, Head of Banking Working Group
2  SOEs Reforms and Capital Markets – Mr. Dominic Scriven, Head of Capital

N Markets Working Group
O
I 8: 50 – 9:20
S
S Response from the Government
E
- The State Bank of Vietnam
S
- The State Securities Commission of Vietnam
- Ministry of Planning and Investment

Page 1 of 3
2. Administrative Procedures Reforms - Efficient and Modernized
- Mr. Tran Anh Duc, Co-Head of Investment and Trade Working Group
- Mr. Khalid Muhmood, Head of Education and Training Working Group
- Mr. David Lim, Head of Land Sub-group

3. Development of Private Sector - Building the Backbone of Business
2 - Mr. Fred Burke, Co-Head of Investment and Trade Working Group
9:20 – 10:05
N

O
I Response from the Government
S
S - Ministry of Planning and Investment
E
S - Ministry of Industry and Trade
- Ministry of Natural Resources and Environment
- Ministry of Education and Training
- Ministry of Construction

10:05 – 10:30 Speech by Prime Minister H.E. Mr. NGUYEN TAN DUNG

10:30 – 10:45 Coffee Break

4. Development of Private Sector - Building the Backbone of Business
(Continued)
 Tax – Mrs. Huong Vu, Head of Tax Sub-group
 Customs – Mr. Mark G. Gillin, Head of Customs Working Group
 Power and Energy – Mr. John Rockhold, Head of Power and Energy Sub-
Group
10:45– 11:25  Automotive – Mr. Gaurav Gupta, Head of Automotive Working Group

Response from the Government

3 - Ministry of Finance

N
- General Department of Customs
O
I - Ministry of Industry and Trade
S
S - Ministry of Planning and Investment
E
S

5. Development of Vietnamese Workforce - A More Competitive Future
 Labor – Mr. Colin Blackwell, Head of HR Sub-group
 Education and Training – Mr. Brian O'Reilly, Co-Head of Education and
Training Working Group
11:25 – 11:45

Response from the Government
- Ministry of Labour, Invalids and Social Affairs
- Ministry of Education and Training

Page 2 of 3
Closing Remarks

4

N
O  Government Leaders (tbc)
I 11:45 – 12:15
S  Ministry of Planning and Investment – H.E. Mr. Bui Quang Vinh, Minister
S
E  World Bank – Mrs. Victoria Kwakwa, Vietnam Country Director
S
 Vietnam Business Forum Consortium – Mr. Vu Tien Loc, Co-Chairman

N
O
E  VIP Lunch (Song Da & Song Thao Room)
H
12:15 – 13:30
C
N  Networking Lunch (Hemispheres Restaurant & Oven Dor Restaurant)
U

L
END OF THE ANNUAL VIETNAM BUSINESS FORUM 2014

Page 3 of 3
Section I

REVIEW OF
INVESTMENT CLIMATE
STATEMENT BY VIRGINIA B. FOOTE, CO-CHAIRMAN
Annual Vietnam Business Forum 2014
Hanoi, December 2, 2014

Your Excellency Prime Minister Nguyen Tan Dung, Minister Vinh, Deputy
Ministers, ladies and gentlemen, it is with great pleasure that we open the annual
year-end Vietnam Business Forum (“VBF”) with the Prime Minister. We are
deeply grateful that you have been able to attend and we very much look forward
to your comments today.

I am very happy to report to you that since our last meeting in June, some
significant progress has been made on issues important to businesses in
Vietnam - we are pleased new investment and enterprise laws were passed last
week by the National Assembly, tax Law amendments are being implemented to
reduce the burdensome time required for tax filing, conditions for work permits
have been relaxed, the recognition and enforcement of foreign arbitral awards
has seen some actions from the Government, and the cap on advertisement and
promotion expenses will be removed following a roadmap. We have included in
the VBF book progress reports of areas of improvement and areas where we
think more work needs to be done.

Through VBF we particularly hope to work on areas of interest to the Government
and the business community - both domestic and foreign.

1. Financial Sector Reforms - we want to address how to speedup banking
reform including international best practices on banking and lending
practices, dealing with the non-performing loans, financial markets, and
public debt.
2. Supporting entrepreneurship to take advantage of upcoming Free Trade
Agreements (“FTAs”).
3. Development of the workforce - training, education, wages, overtime pay,
and work permit issues.
4. State Owned Enterprise reforms - need to speed up the equitization
process and implementation of Decision 51, corporate governance and
international best practices.
5. Administrative Procedures Reforms - steps to modernize and make
procedures more efficient across sectors, especially for permit issuing.
6. Challenges and proposals for Vietnam to take full advantages of new
FTAs - how to attract supporting industries, for example the need for
improvements in access to land, electric power, and transportation.

These are all key areas that need work to ensure that Vietnam is ready to take
advantage of the several trade agreements currently being negotiated. The
Trans-Pacific Partnership, the EU-Vietnam Free Trade Agreement, Regional
Page 1 of 4