Brian Jeffrey
A state-operated regulatory sandbox could significantly transform management perspectives, enabling technology firms to trial innovative business approaches within a pliable legal structure and gain insights from hands-on experience prior to expanding operations, according to business leaders and entrepreneurs.
Nguyen Ba Diep, co-founder of one of Vietnam’s pioneering unicorns and Vice Chairman of Momo, stated that institutional reforms represent the swiftest, most effective, and least expensive method to bolster such enterprises.
He emphasized the necessity of active involvement from both the government and businesses to convert resolutions into actionable results. With appropriate policies, the private sector can achieve remarkable advancements and serve as a robust foundation for the national economy.
“Achieving this would mean the sandbox evolves into a landmark policy and a genuine catalyst for innovative business models. If the sandbox is executed promptly and cohesively, taking real-world insights into account, it can significantly propel Vietnam’s start-up landscape,” Diep remarked.
He acknowledged that the government’s initiative to launch a regulatory sandbox, tailored for innovative firms, signifies a considerable shift in regulatory strategies.
This framework enables tech companies to test ideas within a versatile legal context, gaining valuable lessons before broader implementation. Yet, what businesses truly seek is not merely the establishment of a sandbox but also its consistent and systematic application throughout all levels of governance, from central authorities to local agencies, and from regulators to implementation bodies.
Nguyen Thanh Huong, Investment Director at Nam Long Group, articulated the real estate sector’s aspiration for a clear and competitive marketplace. She advocated for fair access to land resources essential for housing and urban development and called for formalized land development policies.
Dinh Hong Ky, Vice Chairman of the Ho Chi Minh City Business Association, indicated that institutional reforms must ensure the protection of private enterprises’ rights, encompassing property rights, business freedoms, equal competition, and contract enforcement.
Creating a fair playing ground, minimizing undue interference, eliminating bureaucratic obstacles, and moving away from the outdated ‘ask–give’ approach, wherein uncontrolled elements are simply banned, is crucial. He also stressed the importance of distinguishing amongst criminal, administrative, and civil liabilities alongside corporate and individual accountability in legal violations.
“The two percent interest rate support initiative for small, innovative, and ESG-driven businesses is urgent. Nevertheless, its actual implementation faces numerous hurdles, from both financial institutions and enterprises,” Phat noted. He highlighted that previous support initiatives suffered from cumbersome processes and audit pressures, making banks and businesses reluctant to engage.
Phat further stated that the interest rate assistance is inadequate and should be enhanced through broader reforms, including simplifying administrative tasks, digitizing credit approvals, and creating more comprehensive green credit frameworks. He pointed out that private banks have ready access to special and green funding packages, with ample domestic resources prepared to assist businesses once obstacles are removed.
Nguyen Dinh Tung, CEO of T&T Vina, underscored persistent obstacles within the agricultural sector, where the ‘if it can’t be managed, then it’s banned’ mindset prevails, hampering innovation and investment.
Using the durian sector as a case in point, he explained that farmers need significant capital, but the returns only materialize after one or two years, complicating the use of land assets as loan collateral. He proposed that the government officially acknowledge and permit agricultural assets developed on land to be used as collateral, rather than restricting credit availability to land-use right certificates.
Dr. Nguyen Xuan Thanh, a lecturer at Fulbright University Vietnam, remarked that recent years have seen robust economic growth in Vietnam largely driven by domestic private enterprises, spanning from large corporations to small and medium-sized businesses.
This private-sector-driven growth calls for a dynamic market economy supported by a highly competitive business atmosphere. Within this context, the government establishes institutions to manage and rectify market failures./.VNA
