Complicated institution and human problem affect business development

Doing business should be aimed at getting rich legitimately and develop sustainably. But life is not always smooth, there are still many drawbacks, especially in the economic relations.

There are many different types of businesses in Vietnam with different outcomes despite the same environment and the same institution.

Firstly, 90% of private enterprises of Vietnam are now family businesses. They just need to focus on a career, understand and do it well so they can develop and grow sustainably through generations.

The rest of the Vietnamese private sector is mostly “not yet hit but sunk” since Vietnam launched its political and economic renewal campaign in 1986. There are two main reasons for this situation.

Complicated institution

Vietnam has loads of complicated laws on economic management, compared to other countries in the world, making it difficult for businesses to operate. Also, many of the new regulations are often made it easier for law-enforcement instead of creating favourable condition for enterprises. The Government of Vietnam has made great efforts to address the problem including the issue of resolution No.35NQ-CP dated May 16, 2016, on enterprise development policy.

Obviously, the administration of national policies has a direct impact on economic organizations and enterprises.

The human problem

Many private enterprises in Vietnam get rich quickly at all costs, regardless of laws and consequences. These are the holes in the national economy that can not be mended; affecting other transparent enterprises. Specifically, they would be harshly controlled under levels of management, making it hard to develop.

In order to have a transparent environment for enterprises to develop, the government should first try to concretize more national development policies by creating more suitable mechanisms and opportunities for enterprises in general and private enterprises in particular.

The government needs to soon eliminate the policies that interfere enterprises, especially impose proper punishment on those who violate the laws and harm the whole society.

In addition, the policies also need to protect the business so that they can promote their internal strength, reaching out to the world and contributing to the country.