Ms. Le Hong Thuy Tien, CEO of the Inter-Pacific Group (IPP Group), proposed innovative policy solutions at the Vietnam Socio-economic Forum 2023 on September 19 in Hanoi to help businesses overcome the challenges.

She highlighted that, in 2021 and 2022, the difficulties facing Vietnamese businesses included supply chain disruptions, social distancing measures, rising inflation, higher fuel prices, and increased transport costs. This year, as global trade growth declined, businesses found themselves in a passive position, with a number of canceled orders and declining sales. Innovative policy mechanisms are therefore needed to enhance resilience and overcome such challenges.

Firstly, regarding tax policies, finance, and support, such as loans, specific solutions tailored to each group of enterprises are required. An independent agency should be established to assess the support provided to businesses, enabling practical and effective adjustments to forthcoming assistance.

Secondly, it is necessary to eliminate barriers. Specifically, she suggested reviewing regulations that lack practicality and avoid setting standards higher than elsewhere in the region and the world or beyond what is necessary to prevent the waste of business resources.

Thirdly, in terms of tourism development, Mr. Tien proposed considering and issuing special policies to stimulate tourism demand. Specifically, she suggested trade policies within the customs union. “We propose the model of a factory outlet within non-tariff zones to attract both domestic and international tourists,” she said. “If this can be established in Vietnam, it would be the first model of its kind in the region, attracting and retaining foreign currency for Vietnam and contributing to a significant leap forward for its tourism industry.”

Furthermore, it is also necessary to develop duty-free stores. Tax-free zones in the city center would help promote high-value commerce and promote local products in international markets, while boosting tourism revenue and attracting tourists. In South Korea, this industry brings in $16 billion annually for Seoul. “With an advantage in distributing over 138 brands, if the IPP Group was to be given favorable conditions on locations and have a dual price policy, we would invest in numerous duty-free stores, such as a 3,000 sq m store in Da Nang, to contribute to increasing tourist numbers to the city,” she said.

Ms. Tien also suggested there is a need for policy mechanisms for a financial center. In 2016, the IPP Group engaged a UK company - Sheerman - to establish a financial center in Ho Chi Minh City and Da Nang. Resolution No. 31-NQ/TW from the Politburo on tasks and orientations to develop Ho Chi Minh City by 2030 with a vision to 2045 stated that the city is to become a financial and economic center in the Asian region. “I call for close cooperation between experts, the National Assembly, the government, businesses, and society to create a reasonable and streamlined legal framework, enabling businesses to quickly do what the law permits, thus promoting development and innovation,” she concluded.

The IPP Group is currently operating in various sectors. During the Covid-19 pandemic, it continued to make efforts to stabilize the lives of more than 20,000 workers and maintain jobs at its 25 member companies.

The Vietnam Socio-economic Forum 2023 opened in Hanoi on September 19 with a theme of strengthening internal capacity and creating motivation for growth and sustainable development. Co-organized by the National Assembly (NA)’s Economic Committee, the Party Central Committee’s Commission for Economic Affairs, the Ho Chi Minh National Academy of Politics, and the Vietnam Academy of Social Sciences,  this year’s Forum focused on addressing major challenges as well as opportunities in the new economic circumstances.