Businesses still struggle to cut through red tape

More than 20 percent of the central city's 15,000 businesses complained of arduous delays or informal charges to access information regarding licences for land, construction and businesses.
More than 20 percent of the central city's 15,000 businesses complainedof arduous delays or informal charges to access information regardinglicences for land, construction and businesses.

Vice-chairmanand general secretary of the city's Association of Small and MediumSized Enterprises, Nguyen Van Ly, told Vietnam News on November 13 atthe start of a project to improve business administrative procedures andaccess to information.

The project, developed by thecity's Centre for Promotion of Human Resources Development, aims to helpbusinesses cope with administrative procedures, increase transparencyand landscape the investment environment.

The project,which won an award from the Vietnam Anti-Corruption Initiative Programmeco-organised by the World Bank and the Government Inspectorate ofVietnam, will survey 300 businesses for ideas on promoting transparencyand improving Provincial Competitive Index (PCI) numbers.

"Mostbusinesses in the association ask for reform that creates a one-stopshop that dismantles excessive procedural barriers," Ly said.

"Enterpriseswaste time dealing with endless series of procedures to get land,construction and business establishment certificates. They often payinformal fees to some middle man at some department to quicken theprocess," he said.

Despite making considerableadministrative reforms, Da Nang has struggled as some administrativefields drag their feet because bribery among public servants is sodeep-rooted.

Doan Thi Thanh Thuy, an owner of a private company in the city, said she had to waste too much time to get a licence.

"Aland allocation licence took me two weeks or more. I had to go back andforth with lots of paper, getting permissions from several departments,including natural resources and environment, planning and investment,industry and trade, health and grassroots administration," she said.

"Businessescould save time if all the departments and agencies came together toform a one-stop shop to help businesses pay fees and get licensed," shesaid.

Vice-director of the city's Internal Affairsdepartment, Che Viet Son, said the city has incorporated new digitalprocedures in 1,200 public services, and built a data centre andconsultant office at the Software park to assist businesses and localresidents.

Le Duc Vien, deputy director of the Centre forPromotion of Human Resources Development, said she hoped the recentlyawarded project speeds up the city's administration reform.

Accordingto a 2012 survey in Da Nang, 47 percent of 188 businesses had to payinformal charges and 18 percent of those businesses also had to bribebank staff to access loans. While these numbers have reduced, 20 percentare still beleaguered by these issues.

Vien said theproject would target 70 percent of the enterprises previously surveyedto help them build administrative skills and improve relationshipsbetween businesses and leadership.

A national survey by theVietnam Chamber of Commerce and Industry also revealed similarproblems. According to the survey, 75 percent of businesses from 63provinces and cities said that they had to get investment informationfrom personal relations, and 40 percent of businesses complained ofexcessive delays or informal charges to access information.-VNA

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