In line with the country’s global integration process, the National Assembly has passed some laws which will greatly impact on the Vietnamese business environment, including the revised investment and enterprise laws, the law on tendering and new policies on medicine bidding which helped reduce drug prices by 30 per cent.
However, there are small and medium sized enterprises (SMEs) who still have difficulties in accessing loans as well as receiving support from the government. Moreover, although the policies are more transparent and open now, many decrees and circulars conflict with them and cause confusion for local enterprises.
Although increasing global integration is a positive development Viet Nam’s economy in general, it will lead to increased competition between local companies and counterparts in neighboring countries such as Thailand. However, the Government is now focusing on the private businesses as the future backbone of Vietnam’s economy. Therefore, the government plans to propose a new law on SMEs by the end of 2015, in order to assist developing SMEs with company formation, training, preferential lending, market access and brand name development. The funding for SMEs support reserved by the ministry of planning and investment is up to $23.81 million in 2015.