Hanoi (VNA) – Representatives from foreign-invested enterprisesand foreign business associations in Vietnam gave their recommendations onfostering linkages between FDI and domestic firms at the mid-term VietnamBusiness Forum (VBF) 2018 that opened in Hanoi on July 4.

Kim Heung Soo, President of the Republic of Korea Chamber of Commerce(KOCHAM) in Vietnam, said that the majority of Vietnamese enterprises have yetto produce sufficient support products to supply to FDI firms.

Therefore, the Government of Vietnam and FDI enterprises should focus ondealing with the situation, he said, adding that RoK companies are working hardon growing the support industry in Vietnam and assisting small- andmedium-sized enterprises.

The RoK-invested Samsung Electronics Vietnam has raised its productivityto 85 percent through consultation programmes for their Vietnamese partners andsuppliers, said Kim.

He added that Samsung’s programmes have drawn a total of 26 Vietnamesefirms since 2015, which have helped the firm improve its operation efficiencyby 30 percent and reduce production defect by over 20 percent.

Meanwhile, Koji Ito, President of the Japan Chamber of Commerce andIndustry in Vietnam (JCCI), said that forging stronger connections between FDIenterprises and Vietnamese firms is of significant importance for Vietnam inorder to raise its position in the global supply chain.

He held the view that one of the responsibilities of the Government isdesigning regulations to create optimal conditions for enterprises, assertingthat it is necessary to connect Vietnamese companies with FDI firms so as tostrengthen their access to human resources, capital, and products.

The representative also raised many concerns by Japanese investors and underscoredthat if the Government keeps the fiscal policies too tight by limiting publicdebt at below 65 percent of the GDP, it will become a hindrance toinfrastructure and construction. Vietnam is in need of investment in this fieldto ensure middle- and long-term economic growth, he added, stressing that underdevelopedinfrastructure will reduce the attraction of Vietnam to foreign enterprises,while also harming the connectivity between existing Vietnamese and FDIbusinesses.

JCCI proposed that Vietnam roll out measures to reform the structure of itsbudget expenditure and collection, while reviewing the efficiency of loans.

Participants also showed their hope for improvements in tax and customspolicies.

Representatives of Asian and European businesses also asserted that althoughVietnam has exerted great efforts in the work, many shortcomings have been seenin its tax and customs policies, including problems on tax exemption andrefund, the transparency of tax reports, and the professionality of tax andcustoms officials in auditing and inspecting, as wells as many obstacles frompost-clearance examination and current tax policies.

Nicolas Audier, President of the European Chamber of Commerce (EUROCHAM)in Vietnam, said that tax policies should be renovated to lure more investors.

He said that Europeans are keen on Vietnam’s energy market and wish forthe Vietnamese Government’s assurance of transparency and coherence in both itsinvestment attraction policy as well as intellectual property protection.

Ousmane Dione, World Bank Country Director in Vietnam, recommended thatlocal Vietnamese firms should enhance their capacity and competitiveness tobecome suppliers to foreign businesses, which means engaging deeper with theglobal value chain.

This is also a stage to make full use of opportunities from the fourthindustrial revolution, stated Dione.-VNA