What is the Vietnam Business Forum (VBF)
Following the initiative adopted at the Vietnam Consultative Group (CG) meeting in Tokyo in 1997, the first Private Sector Forum (now known as the Business Forum) took place in Hue in June 1998 at the mid-term CG meeting.
Since then, the VBF has established crucial channels of communication between the private sector and government that are widely recognized for contributing to business environment reform. Today, the Forum continues to be Vietnam’s reputable and regular dialogue between government and the business community.
The VBF is funded by Australia, Canada, Finland, IFC, Ireland, Japan, New Zealand, the Netherlands, Norway, Sweden, and Switzerland.
Why VBF?
The economic development of Vietnam relies on a strong and sustainable private sector. However, businesses in Vietnam still operate in an environment where the enforcement of laws and administrative red tape are ongoing concerns.
To establish a more conducive business environment, the government needs relevant and constructive input from private companies.
The Vietnam Business Forum was created to satisfy this need as a joint initiative between the Vietnamese government, the private sector, and the donor community.
How is it organized?
The Forum is chaired by a Deputy Primer Minister and co-chaired by the WB Country Director, the IFC Country Manager, and the Minister for Planning and Investment. A Secretariat based at the IFC Office has been established to co-ordinate and facilitate the Forum’s activities.
Who are VBF members?
Members of the Forum are representatives from foreign and domestic enterprises, various business associations and chambers, and government counterparts.
How does it operate?
The Forum meets two times per year. It is scheduled to coincide with the Vietnam Consultative Group meetings.
At the operations level, the Forum’s dialogue is conducted through five main working groups – Banking, Capital Markets, Infrastructure, Manufacturing & Distribution, and Tourism. These groups meet regularly with their government counterparts to enable issues to be discussed in greater detail.
Input on issues for discussion which are of interest to the private sector in general are sought from all levels in the business community, and then consolidated into position papers. These are then presented to the Government in advance of the working group meetings. The Secretariat and the working groups monitor the discussion of issues raised, the implementation of potential solutions and the issues’ overall progress. The results are reported to the broader Forum meetings.
What is the value of VBF?
By representing and protecting the interests of its members to the policy decision makers, the VBF ensures that all relevant policy is therefore better informed and made in consideration of VBF member contributions.
By working closely with different government agencies, the Forum offers its members the unique opportunity to express policy/business concerns to the proper Government partners, and receive prompt feed-back at no cost. By doing so, the Forum helps abolish unnecessary rules and regulations and eliminates immediate impediments to business.
Through the Forum, a number of reform measures have been suggested and brought into implementation. Significant reforms attributed to the VBF include:
- Unifying the legal framework for domestic and foreign investment and business
- Phasing out of dual pricing of goods and services to foreign vs. domestic entities
- Streamlining of licenses and approvals
- Improvements in patent and industrial design protection
- Improved and more transparent land clearance and compensation procedures
- Reduction of various fees and taxes
- Formulation of a number of important business laws, i.e. the Investment and Enterprise Laws, the Securities Law, and the amended Labor Code.
A recent independent evaluation has determined that the Forum has made a return on investment that far exceeds the investment of the IFC and the development partners. Analysis of only a select number of reforms, showed the combined economic impact or contribution from the VBF to the private sector to be over US$200 million over the past five years.
The Forum also stimulates and facilitates initiatives of both the government and the private sector on policy issues toward private sector development.
The strength and effectiveness of the Forum stem from a strong partnership and direct links with the IFC, World Bank, and relevant ministries and thus to the donor-government Consultative Group (CG) process. As the Forum takes place before the CG meeting, issues raised in the Forum will subsequently be addressed in the CG process with possible donor supports. This sets the Vietnam Business Forum apart from other forums.
How to join?
There are a variety of ways for enterprises to sign up for participation in the relevant working groups. Options include, but are not limited to, local Business Associations/Groups and Chambers, or other members of a Working Group, as well as the VBF Secretariat. Enterprises are allowed to participate in more than one working group.
The registration forms and detailed instruction can be found on this website.