TAILIEUCHUNG - Business environment in Vietnam from enterprises’ perspective

In the past few years, central government and provinces have attempted to improve business environment to create more favorable conditions for enterprises’ investment and production, more equality among enterprises. The author tries to assess business environment in Vietnam by i) comparing Vietnam business conditions and other countries using results of Global Entrepreneurship Monitor – (GEM) and Vietnam Entrepreneurship Monitor (VEM); ii) evaluating the improvement of Vietnam business environment used mainly results of Provincial Competitiveness Index (PCI) of Vietnam Chamber of Commerce and Industry (VCCI). | Vietnam Social Sciences, No. 3(167) - 2015 Business Environment in Vietnam from Enterprises’ Perspective Vu Hung Cuong * Luong Minh Huan ** Abstract: In the past few years, central government and provinces have attempted to improve business environment to create more favorable conditions for enterprises’ investment and production, more equality among enterprises. The author tries to assess business environment in Vietnam by i) comparing Vietnam business conditions and other countries using results of Global Entrepreneurship Monitor – (GEM) and Vietnam Entrepreneurship Monitor (VEM); ii) evaluating the improvement of Vietnam business environment used mainly results of Provincial Competitiveness Index (PCI) of Vietnam Chamber of Commerce and Industry (VCCI). Key words: Business environment; private sector. 1. Vietnam business conditions in 2013 compared with other countries To assess business conditions in different countries, GEM study is based on the results of experts’ survey in 9 fields and builds a set of 12 indicators. VEM 2013 shows the presence and restrictions on business conditions in Vietnam. According to experts’ survey, infrastructure is rated highest in Vietnam business condition, reaching points (on a scale of 1 to 5). Experts particularly appreciate communication system development, which businesses can quickly access communication system with normal cost, while road system, electricity and water are evaluated as not up to expectations for the development of the business activities. The next two factors that experts highly appreciate are the dynamic of domestic market ( points) and cultural and social norms ( points). Of the 12 business condition indicators, only 3 indicators are on average (3 points), while 9 remaining indicators are evaluated below average, including three lowest positions: Government Support Program 10 ( points), Finance for Business ( points) and especially Business Education at the Secondary School ( .

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