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Informality and the playing field in Vietnam's business sector

Private sector growth will be key to maintaining the dynamism of the Vietnamese economy, according to the International Finance Corporation. Above all, private enterprises need space to grow. Regulations that run counter to the logic of normal market practices, that give entrepreneurs few opportunities to enter into contractual relationships, or that penalise them for market success must be avoided at all costs.

But adapting laws and regulations to the needs of the market place will not be enough. Incentives inside the bureaucracy need to be aligned with development. A government committed to development will find it beneficial to support the growth of the private sector.

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The International Finance Corporation, part of the World Bank Group, fosters sustainable economic growth in the emerging markets by providing loans and equity to the private sector, mobilizing capital in the international financial markets, and providing technical assistance to governments and businesses. Since its founding in 1956 through 30 June 2002, IFC has committed more than $34bn of its own funds and has arranged $21bn through syndications for more than 2,800 companies in 14 developing countries. For further information please visit www.ifc.org.