The European Chamber of Commerce in Vietnam (EuroCham) said its member companies have experienced difficulty in implementing projects and the enforcement of intellectual property rights this year.
On Thursday, EuroCham released its annual report which indicated that Vietnam has made good progress in upgrading its regulatory framework, licensing and infrastructure.
However, it noted that "troubling new administrative burdens have been decided in 2010," including new rules regarding automatic import licensing and price stabilization measures.
Vietnam should act quickly to improve its international business appeal, upgrade the quality of its labor force, and improve its energy supplies, EuroCham Chairman Alain Cany said in a statement.
"Moreover, structural reforms to increase the efficiency of its economy must remain high on Vietnam's agenda, in particular with regards to further equitizing the state-owned enterprises," he said.
The publication, titled The Whitebook 2011, also encouraged the government to focus on the core structural issues to increase productivity and competitiveness in the medium and long-term.
EuroCham Executive Director, Matthias DÃ¼hn, said Vietnam should promote a "culture of innovation" which values creativity, new technologies and value-added solutions.
Otherwise the country risks falling into the "middle income trap," he warned.
The Whitebook 2011 covers the major industries that EuroCham's more than 750 member companies operate in.