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City’s Party chief pledges support for business

 

Vietnam-HCM3

The HCMC government will try to create a fair and transparent business environment for enterprises in all economic sectors, HCMC Party chief Dinh La Thang said.

Thang made the promise at an annual dialogue between HCMC leaders and the business community after representatives of enterprises and associations pointed out a series of problems which firms are facing in doing business in the city.

The problems include challenges from Vietnam's deeper international integration, inconsistent tax policy, the low quality of human resources, heavy dependence on material imports, underdeveloped traffic infrastructure, the lack of financial assistance, and high port fees.

Huynh Van Minh, chairman of the HCMC Business Association, said as Vietnam is intensifying its international integration drive, local enterprises could face a lot of challenges ahead as most of them are small and medium.

To help enterprises, the association called for the city government to ensure policy stability, develop human resources and provide financial support for them.

Do Phuoc Tong, chairman of the HCMC Mechanical Engineering Association, said the industry has not got much backing from the HCMC government though it is key to the city's economy.

Tong said many enterprises in the industry are in great difficulty as domestically-manufactured machines are subject to high taxes, so their products cannot compete with imported machinery that enjoys tax incentives.

Pham Xuan Hong, chairman of the HCMC Textile-Garment-Embroidery-Knitting Association, voiced concern over heavy reliance of the sector on imported materials.

Hong said local suppliers could only meet one-fourth of the material needs of enterprises in the sector. Vietnam posted apparel export revenue of US$27.1 billion last year but the added value generated by the industry was small since they imported 80% of the materials needed.

Therefore, Hong asked the city government to reduce or exempt the land rent for enterprises committed to supporting industries for the sector. The city should develop a centralized wastewater treatment system for textile and dyeing firms to help them improve competitiveness.

Tran Ba Duong, general director of Dai Quang Minh Co, the investor of Sala urban area in the city's District 2, urged the HCMC government to quickly find effective solutions to solve problems of enterprises.

"It might take days and even months to itemize all the difficulties and concerns of enterprises. It is important to work out comprehensive solutions to addressing all the problems," Duong said.

In his closing remarks, Party secretary of the city Thang assigned the city government to solve problems of enterprises.

The city plans to organize dialogues with the business community on a monthly basis, instead of a yearly basis, to help enterprises solve their problems as fast as possible, Thang said.

The ultimate goal is to make HCMC a leading financial, banking, scientific, technological and educational center in the region, he said. "To realize this, I request change in the mindset of all State employees, departments and agencies," Thang said.

He said that as enterprises are tax payers, authorities need to serve them unconditionally and that there is no reason to bother them. The city is committed to dismiss civil servants found to harass enterprises and those with poor capacity.

In the coming time, the city government will organize roundtables with enterprises in each sector to gain an insight into their operations and difficulties, HCMC chairman Nguyen Thanh Phong said.

Source: thesaigontimes

Key words: City's Party, chief, pledges, support, business

 

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