Workers assemble cars at Hyundai Thanh Cong Factory (Photo: VNA)

Hanoi (VNA) – The Ministry of Planning and Investment recently proposed the Prime Minister abolish nearly 2,000 business requirements and conditions, a move to help improve the business climate and the economy’s competitiveness.

The ministry asked for complete or partial abolition of 302 financial conditions, and complete abrogation of 85 conditions on location and another 1,336 on production capacity. 

It also called for all conditions on manpower, except for some professions that need high qualifications and experience like health care and accounting, 127 conditions on mode of business and 80 conditions on planning to be repealed.

At a recent workshop on the issue, Director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung said there remain a number of problems in regulations on business conditions, undermining the competitiveness of businesses as well as the whole economy. Business conditions are creating irrational barriers to investment and market entry, hindering the establishment of new firms, and discouraging existing enterprises.

[Excess preconditions drag economy]

Unreasonable business conditions are also one reason behind the shutdown or operation suspension of many companies, he said, adding that many potential investors have given up their business intention after learning about business conditions, which usually require large ground and infrastructure, many certificates and much experience. 

Dang Quang Vinh from CIEM’s business environment and competitiveness division pointed out unreasonable official costs, adding that unofficial costs can occur in any business stages and during the entire law enforcement process.

CIEM Deputy Director Nguyen Thi Tue Anh said businesses have had to spend on too many expenses which have hampered their operations. Utmost efforts are needed to reduce costs for them.-VNA