Vietnam's economic landscape is facing significant challenges, particularly in the realm of official development assistance (ODA) disbursement, which has been sluggish. The government has urged the removal of policy obstacles to expedite ODA capital flow, with the Ministry of Planning and Investment (MPI) reporting a disbursement rate of only 1.42% as of February 29. Factors contributing to this slow pace include difficulties in negotiating loan agreements, discrepancies in policies between Vietnam and its donors, and hurdles in bidding and site clearance [24067c08].
In a recent statement, Minister of Planning and Investment Nguyễn Chí Dũng emphasized the inefficiencies in Vietnam's regulatory environment, comparing the time it takes to build a city in Vietnam—up to 1,500 years—to Dubai's five years for a similar project. He highlighted the urgent need for reforms in several key laws, including the Law on Planning, Law on Investment, Law on Public-Private Partnership (PPP), and Law on Bidding. Dũng pointed out that inconsistent policies often drive foreign investors away, while domestic companies grapple with complex regulations that hinder their operations [6bb74fcb].
To support Vietnam's semiconductor development, the United States has pledged increased investment and workforce development initiatives in the industry. Additionally, Vietnamese banks are planning to raise their charter capital this year, which could bolster the financial sector [24067c08].
The retail sector is also expanding, with companies like AEON Vietnam and FPT Retail opening new stores and pharmacies. The government is implementing pro-business solutions to enhance confidence and stimulate production and exports. The Vietnam National Brand Week is set for April 15-21 to promote products recognized as national brands, while Binh Dinh province will see a 43-hectare eco-tourism project with an investment exceeding $160 million [24067c08].
Village-run enterprises (BUMDes) are playing a crucial role in enhancing the welfare of villagers in Indonesia, with significant capital investments and community empowerment initiatives reported. As of 2021, rural governments had invested Rp1.16 trillion (US$72.3 billion) in BUMDes, benefiting over 331,000 villagers [470256da].
In Vietnam, microfinance institutions have made strides in promoting financial inclusion and poverty reduction, currently serving around 500,000 customers. However, the sector's growth is hampered by limited capital and inconsistent regulations. Experts advocate for a comprehensive review of the microfinance legal framework to enhance its operational capacity and encourage broader participation from social resources [35a7f04e].
The urgency for reform was echoed by Tô Lâm, general secretary of the ruling party, who stressed the need for decentralization and efficient law-making to create a more conducive business environment in Vietnam [6bb74fcb].