(lllustrative Photo: VNA)

Hanoi (VNA) – State officials and economic experts shared concerns over policy barriers that hinder domestic businesses amid global integration.

Vietnam has implemented major policies on overhauling mechanisms, cutting red tape and improving the business climate. These policies, however, have contributed little to boost the overall competitiveness of the economy.

Dau Anh Tuan, Head of the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) , underscored the importance of encouraging innovation across provincial-level bodies.

The recently improved provincial competitiveness index reflected better business confidence, not changes in the status quo of local bureaucracies, he said.

Do Anh Tuan, Vice Chairman of the Small-and Medium-Sized Enterprises Association in Da Nang, said local companies are lacking intention of business expansion and interest in transition process following several signed free trade agreements.

Complicated regulations are responsible for the situation, as they make enterprises lose control of their costs, noted Tuan.

Le Minh Hai, Head of Da Nang-Mien Trung Investment JSC, complained about overlapping procedures that are time-consuming and costly.

He cited an example in which his company’s project, despite turning out products and being licensed by the municipal authorities, could not be used as a guarantee instead of a performance bond issued by the bank. In response to the inconvenience, the local Department of Planning and Investment said there was no precedent to work with.

VCCI Chairman Vu Tien Loc proposed that the Government continue to complete relevant legal frameworks, simplify procedures and enhance their quality.

Vice Chairman Do Anh Tuan from the Da Nang business association pointed out that innovation is essential for businesses facing the challenges that come with integration.-VNA