The Government is pushing ahead with a programme on institutional andadministrative reform in accord with its own Resolution 19/NQ-CP onimproving 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 domesticprivate companies and 50 percent of foreign direct investment onesplanned to expand operation in Vietnam. This is the highest figure since2012, reflecting their positive assessment about the business climatein the country.
The resolution was also hailed at the mid-term Vietnam Business Forum.
Resolution 19 stipulates specific performance indicators to measurethe efficiency of services delivery, including tax payment procedures,access to electricity, intellectual property protection, rights ofinvestors and minority shareholders in line with the internationalstandards and equality and transparency in credit access.
The Central Institute for Economics Management (CIEM) said remarkableprogress has been made in the field of start-up business last year,citing the Law on Enterprises in 2014 helped reduce the registrationtime for business licences to three days – half of the set target of sixdays.
The VCCI survey also showed up to 70 percentof businesses said they are satisfied with the tax sector’sadministrative reform.
Apart from positive outcomes, there are shortcomings in the field.
The Resolution requires that ministries, agencies and localities mustissue plans of action to realise 13 missions outlined in the Resolutionbefore April 30. However, by June 17, the Ministry of Planning andInvestment received action plans from only 11 ministries, agencies, and11 municipal and provincial People’s Committees. This means 14ministries, agencies and 52 provincial and municipal People’s Committeeshave yet mapped out plans.
Foreign businesses still have reservation about the changes.
According to the European Chamber of Commerce (EuroCham)’s regularsurvey conducted just before the mid-term Vietnam Business Forum, a mere21 percent of respondents said they are confident that changes in thenew Law on Enterprises and Law on Investment will benefit theiroperation, while 41 percent of the surveyed companies said they have notfully understand the details of the new laws.
Investors suggested decrees guiding the implementation of the aforesaidlaws be soon issued, adding that the requirement of having both businessand investment registration licences has raised difficulties forforeign investors.
Regarding the electricity access,tax and social insurance payment criteria, Vietnam has witnessedimprovements, 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 domesticprivate companies and 50 percent of foreign direct investment onesplanned to expand operation in Vietnam. This is the highest figure since2012, reflecting their positive assessment about the business climatein the country.
The resolution was also hailed at the mid-term Vietnam Business Forum.
Resolution 19 stipulates specific performance indicators to measurethe efficiency of services delivery, including tax payment procedures,access to electricity, intellectual property protection, rights ofinvestors and minority shareholders in line with the internationalstandards and equality and transparency in credit access.
The Central Institute for Economics Management (CIEM) said remarkableprogress has been made in the field of start-up business last year,citing the Law on Enterprises in 2014 helped reduce the registrationtime for business licences to three days – half of the set target of sixdays.
The VCCI survey also showed up to 70 percentof businesses said they are satisfied with the tax sector’sadministrative reform.
Apart from positive outcomes, there are shortcomings in the field.
The Resolution requires that ministries, agencies and localities mustissue plans of action to realise 13 missions outlined in the Resolutionbefore April 30. However, by June 17, the Ministry of Planning andInvestment received action plans from only 11 ministries, agencies, and11 municipal and provincial People’s Committees. This means 14ministries, agencies and 52 provincial and municipal People’s Committeeshave yet mapped out plans.
Foreign businesses still have reservation about the changes.
According to the European Chamber of Commerce (EuroCham)’s regularsurvey conducted just before the mid-term Vietnam Business Forum, a mere21 percent of respondents said they are confident that changes in thenew Law on Enterprises and Law on Investment will benefit theiroperation, while 41 percent of the surveyed companies said they have notfully understand the details of the new laws.
Investors suggested decrees guiding the implementation of the aforesaidlaws be soon issued, adding that the requirement of having both businessand investment registration licences has raised difficulties forforeign investors.
Regarding the electricity access,tax and social insurance payment criteria, Vietnam has witnessedimprovements, but failed to reach the average level of ASEAN-6 (Brunei,Indonesia, Malaysia, the Philippines, Singapore and Thailand).-VNA
