IFC-Sponsored Vietnam Business Forum Keeps Up with Challenging Business Climate

At the last Vietnam Business Forum for 2011 held in Hanoi in December, business executives discussed with government representatives how Vietnam can maintain its competitiveness while transitioning to a middle-income country and urged continued government reforms to make doing business easier.

The semi-annual dialogue between the private sector and the government co-sponsored by IFC, the World Bank, and the Ministry of Planning and Investment, has become an important fixture in Vietnam’s business community, widely recognized for contributing to business environment reform.

According to a survey commissioned by the IFC-run VBF Secretariat, 2011 has been a tough year for Vietnam’s business community, with business morale falling to a three-year low. Nevertheless, most companies said they expect to expand their business in the coming years based on the country’s long-term prospect.

“While the gloomy image of macroeconomic instability, 20 percent inflation and a weak currency in Vietnam is temporary, the medium to long-term outlook remains positive,” Christopher Twomey, chairman of American Chamber of Commerce in Vietnam said during the Forum. “By participating actively in a meaningful structured dialogue, we can help stabilize Vietnam’s macroeconomy, serve socio-economic development goals, and renew the growth model.”

For 13 years, IFC Vietnam’s Business Climate team has coordinated and facilitated the Forum’s activities and will soon be handing over its Secretariat role to a consortium of local and international chambers of commerce.

“The invaluable commitment from 13 chambers of commerce and business associations, both local and foreign, who have agreed to provide funding and coordinating support to the Forum in the coming years clearly indicates how much the private sector’s value this unique policy dialogue and testifies to the strong commitment of Vietnam’s business community as partners of the government in improving Vietnam’s business environment,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand.

The Forum has achieved an estimated $200 million in savings for the private sector from reforms that reduced barriers and increased transparency in business development processes. It has helped ensure consistent and fair implementation of laws and regulations and promoted open and honest feedback between the government and the private sector on all facets of Vietnam’s economy. The Forum has also served as a model for similar IFC government-private sector dialogue projects in Cambodia and Lao PDR.