The Government is pushing ahead with a programme on institutional and administrative reform in accord with its own Resolution 19/NQ-CP on improving business environment and national competitiveness.
The move has won trust among businesses both domestic and foreign, but much remains to be done.
According to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, a VCCI survey in April showed 46 percent of domestic private companies and 50 percent of foreign direct investment ones planned to expand operation in Vietnam. This is the highest figure since 2012, reflecting their positive assessment about the business climate in the country.
The resolution was also hailed at the mid-term Vietnam Business Forum.
Resolution 19 stipulates specific performance indicators to measure the efficiency of services delivery, including tax payment procedures, access to electricity, intellectual property protection, rights of investors and minority shareholders in line with the international standards and equality and transparency in credit access.
The Central Institute for Economics Management (CIEM) said remarkable progress has been made in the field of start-up business last year, citing the Law on Enterprises in 2014 helped reduce the registration time for business licences to three days – half of the set target of six days.
The VCCI survey also showed up to 70 percent of businesses said they are satisfied with the tax sector’s administrative reform.
Apart from positive outcomes, there are shortcomings in the field.
The Resolution requires that ministries, agencies and localities must issue plans of action to realise 13 missions outlined in the Resolution before April 30. However, by June 17, the Ministry of Planning and Investment received action plans from only 11 ministries, agencies, and 11 municipal and provincial People’s Committees. This means 14 ministries, agencies and 52 provincial and municipal People’s Committees have yet mapped out plans.
Foreign businesses still have reservation about the changes.
According to the European Chamber of Commerce (EuroCham)’s regular survey conducted just before the mid-term Vietnam Business Forum, a mere 21 percent of respondents said they are confident that changes in the new Law on Enterprises and Law on Investment will benefit their operation, while 41 percent of the surveyed companies said they have not fully understand the details of the new laws.
Investors suggested decrees guiding the implementation of the aforesaid laws be soon issued, adding that the requirement of having both business and investment registration licences has raised difficulties for foreign investors.
Regarding the electricity access, tax and social insurance payment criteria, Vietnam has witnessed improvements, but failed to reach the average level of ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).-VNA
The move has won trust among businesses both domestic and foreign, but much remains to be done.
According to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, a VCCI survey in April showed 46 percent of domestic private companies and 50 percent of foreign direct investment ones planned to expand operation in Vietnam. This is the highest figure since 2012, reflecting their positive assessment about the business climate in the country.
The resolution was also hailed at the mid-term Vietnam Business Forum.
Resolution 19 stipulates specific performance indicators to measure the efficiency of services delivery, including tax payment procedures, access to electricity, intellectual property protection, rights of investors and minority shareholders in line with the international standards and equality and transparency in credit access.
The Central Institute for Economics Management (CIEM) said remarkable progress has been made in the field of start-up business last year, citing the Law on Enterprises in 2014 helped reduce the registration time for business licences to three days – half of the set target of six days.
The VCCI survey also showed up to 70 percent of businesses said they are satisfied with the tax sector’s administrative reform.
Apart from positive outcomes, there are shortcomings in the field.
The Resolution requires that ministries, agencies and localities must issue plans of action to realise 13 missions outlined in the Resolution before April 30. However, by June 17, the Ministry of Planning and Investment received action plans from only 11 ministries, agencies, and 11 municipal and provincial People’s Committees. This means 14 ministries, agencies and 52 provincial and municipal People’s Committees have yet mapped out plans.
Foreign businesses still have reservation about the changes.
According to the European Chamber of Commerce (EuroCham)’s regular survey conducted just before the mid-term Vietnam Business Forum, a mere 21 percent of respondents said they are confident that changes in the new Law on Enterprises and Law on Investment will benefit their operation, while 41 percent of the surveyed companies said they have not fully understand the details of the new laws.
Investors suggested decrees guiding the implementation of the aforesaid laws be soon issued, adding that the requirement of having both business and investment registration licences has raised difficulties for foreign investors.
Regarding the electricity access, tax and social insurance payment criteria, Vietnam has witnessed improvements, but failed to reach the average level of ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).-VNA
