A worker at Viet Nam Stanley Electric Co Ltd, a joint-venture between Viet Nam and Japan. The Government is taking drastic steps to improve the business and investment climate in line with Resolutions 19 and 35. — VNA/VNS Photo Danh Lam

Dung said the development of the legal system aims to inspire an environment of support and openness for corporations.

"Only when firms see the support and consistency of the government's policies will they feel confident about spending their money here," Dung said at the dialogue co-organised by Viet Nam's Association of Foreign Invested Enterprises (VAFIE) and KPMG Viet Nam. "The Government wants to hear more opinions from business leaders in order to create appropriate policies."

The Government is taking drastic steps to improve the business and investment climate in line with Resolutions 19 and 35, Dung said.

With the Vietnamese economy stable in the first half of this year, but still in need of firm ground for growth, Dung said the role of the business community was of great importance.

In the remaining months of this year, Dung urged businesses to be more dynamic in helping drive the economy forward. Businesses must enhance co-operation to help each other overcome difficulties.

"Competition should not be about winning or losing, but about improving," Dung said.

Increasing labour productivity is of key importance to Viet Nam's development and for avoiding the mid-income trap, Dung said.

Dung said business must adapt to the rapidly changing and integrating world markets and prepare to grasp opportunities as they arise.

Quach Ngoc Tuan, deputy director of the ministry's legal department, said business should be more proactive in offering their opinions on draft laws in order to improve the business climate.

Warrick Cleine, Chairman and CEO of KPMG in Viet Nam, said the Government should enhance efforts to open up the economy.

Chairman of VAFIE, Nguyen Mai, said policies to promote the development of small- and medium-sized enterprises (SMEs) are needed. Mai said tax incentives would help SMEs accumulate capital for investment and technological innovation.

Dung said it was important to promote the development of Vietnamese firms now in order to keep up with the dynamics of the foreign direct investment (FDI) sector. 

Stressing the role of FDI enterprises, Dung said they were critical for the development of Viet Nam's parts supply industry.

Dung said he expects foreign-invested firms to create conditions for domestic firms to participate in their supply chain. "Local firms cannot develop the parts supply industry alone," Dung said.

Statistics of the Foreign Investment Agency show that Viet Nam attracted more than US$11.2 billion worth of FDI in the first half of this year.—  VNS