How will market control operations be adjusted to adapt to the new situation?

From now on, the state will no longer make production plans and set the prices of almost all kinds of goods. This task will be the right of businesses under the law.

The state’s market control operations will focus on the construction and implementation of the system of legal documents, collecting information on the local and international markets to process and analyse to provide the best forecast of the world market to serve enterprises and consumers.

Market controllers will use macro-economic tools (mainly the legal system and financial and monetary policies) to influence production, business, and to ensure supply-demand balance of the economy, such as balance in money-goods, budget spending-collection, import-export, and supply-demand of essential goods.

The Ministry of Industry and Trade will check and compile legal documents to perfect the current legal system to create favourable, open and transparent conditions for enterprises of all economic sectors to develop in a sustainable manner.

What formalities will be simplified or abolished?

First of all, all kinds of sub-licences will be abolished. Requirements in sub-licences will be turned into conditions of business registration. Many kinds of sub-licences are formalities because, actually, no state agency is able to keep track of and manage them.

I think it is necessary to expand the forms of registration such as: business establishment registration, business registration, product quality registration, pricing registration for essential products, etc. with state management agencies under specific and clear regulations.

The government has issued a decree on guiding the implementation of the Trade Law, specifically on goods purchasing and operations directly related to goods purchasing of foreign-invested firms in Vietnam. How will the domestic market change along with the participation of this new subject?

In my opinion, the local market will see many changes. It will be more diverse and more bustling with many more goods providers, many more kinds of goods, and new forms of goods supply, etc.

The buyer (including producers and consumers) will have opportunities to select sources of supply of goods and services which are diverse in sort, quality and prices. The competition in the market will be fiercer and it will be the positive factor to promote the development of the domestic market.

Are Vietnamese enterprises able to compete in the home market as conditions set for foreign investors are being loosened?

We worry about the weak competitiveness of Vietnamese enterprises when we open the market and integrate into the international economy. However, it doesn’t mean that our enterprises are too weak and can’t compete with foreign enterprises in the home and international markets.

Recently there have been many anti-dumping lawsuits against Vietnamese exports. This fact reflects the weakness of Vietnamese businesses: unfamiliarity with business habits of the world and the ability of Vietnam ‘scares’ them and makes them sue Vietnamese goods.

Many local enterprises have made joint ventures and cooperate with each other and with foreign partners in the fields of distribution and retail. I believe that Vietnamese distributors and retailers will be able to compete in the local market in the coming time.

Source: TBKTSG