THE BUSINESS INFORMATION CENTER AT THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

No.5 (8) December 2004

   

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Issue No. 22
Access to land
:: Article  :: Viewpoints
 

Issue No. 21
The state capital
investment corporation
:: Article  :: Viewpoints
 

Issue No. 20
Streamlining the
business startup process
:: Article  :: Viewpoints
 

Issue No. 19
Effective Implementation of the new Enterprise and Investment Laws
:: Article  :: Viewpoints
 

Issue No. 18
Starting a business in Vietnam
:: Article  :: Viewpoints
 

Issue No. 17
Streamlining
Business Licensing
:: Article  :: Viewpoints
 

Issue No. 16
Women's entrepreneurship
:: Article  :: Viewpoints
 

Issue No. 15
Private Credit Bureaus
:: Article  :: Viewpoints
 

Issue No. 14
Efforts in improving business environment
:: Article  :: Viewpoints
 

Issue No. 13
Corporate governance
:: Article  :: Viewpoints
 

Issue No. 12
The common investment law
:: Article  :: Viewpoints
 

Issue No. 11
Private sector firms
:: Article  :: Viewpoints
 

Issue No. 10
The unified enterprise law
:: Article  :: Viewpoints
 

Issue No. 9
Investment incentives
in Vietnam
:: Article  :: Viewpoints
 

Issue No. 8
Business Environment in Vietnam - Overview 2004
:: Article  :: Viewpoints
 

Issue No. 7
Business Development Services
:: Article  :: Viewpoints
 

Issue No. 6
Local governance
& Economic growth
:: Article  :: Viewpoints
 

Issue No. 5
SOE Valuation
:: Article  :: Viewpoints
 

Issue No. 4
Corp. Social Responsibility
:: Article  :: Viewpoints
 

Issue No. 3
Trademark protection
:: Article  :: Viewpoints
 

Issue No. 2
The stock market
:: Article  :: Viewpoints

 

Issue No. 1
The revised draft Land Law
:: Article  :: Viewpoints

 

 

VIEWPOINTS
 

Corruption is a threat

 
to social stability and economic development  

  • The business environment in Vietnam has improved significantly for foreign investors in recent years. It took me only 11 months to get "The Bamboo Factory" up and running.
    However, I find that there are still various unofficial costs for business. Take the example of in-country transport. I have to pay a number of "taxes" to take the bamboo out of forests. The problem is that I have to pay these "taxes" at numerous roadblocks at district and commune levels. These costs are unpredictable and unofficial, and therefore are not tax-deductible.

Mr. Thierry Mermet, General Director, The Bamboo Factory


  • To address the issue of corruption, some countries follow a model of "small government, large civil society". In a system of "big government", where government administrative offices have a lot of power, it is difficult to avoid corruption. As long as citizens still have to "ask" and government officials can decide whether or not to "give," opportunities for corruption will remain.

Dr. Nguyen Si Dzung, Vice Chairman, Office of the National Assembly


  • Increasing salaries for public servants will not effectively eliminate corruption. It is also not feasible–where would the resources come from? In my opinion, the most effective and doable measure is to reduce government intervention in business activities; the Enterprise Law has accomplished this to some extent. Limiting the number of cumbersome regulatory procedures will reduce opportunities that government officials have to succumb to corruption.

Ms. Phan Thanh Ha, Vice Director, Macro-economic Policy Department,
Central Institute for Economic Management, MPI (CIEM)


  • I think corruption hurts at two levels. The direct impact is that it pushes costs up, and this affects consumers' welfare and producers' competitiveness. But its worse effect is to foster a sense of cynicism by the Vietnamese public. If one sees that corruption is part of everyday life–that is, if it is so common that it is no longer seen to be wrong to pay or accept bribes–then it becomes easier to accept corruption or even to participate. Even limited corruption makes the public believe that it is widespread, and honest and concerned officials–of whom there are many in Vietnam–are tainted by implication. The current crackdown on corruption gives me some confidence. The drive seems to be both serious and broad.

Mr. Sesto Vecchi, Managing Partner, Russin&Vecchi Law Firm


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Publisher: Dao Tuan Dung - Director of BIZIC - VCCI
Office: 5th floor - International Trade Center - No. 9 Dao Duy Anh Str., Hanoi
Tel: (84-4) 574 3084 - Fax: (84-4) 574 2773 - E-mail: vcci@hn.vnn.vn