Land-related procedures remain burdensome for businesses

The preparation and completion of additional documentation for land-related administrative procedures remain burdensome for businesses, especially in "sub-procedures", according to the 2022 Administrative Procedure Compliance Cost Index (APCI 2022) report.
Land-related procedures remain burdensome for businesses ảnh 1Illustrative image (Photo: laodong.vn)

Hanoi (VNA) – The preparation and completion of additional documentationfor land-related administrative procedures remain burdensome for businesses,especially in "sub-procedures", according to the 2022 AdministrativeProcedure Compliance Cost Index (APCI 2022) report.

The report was conducted by the Prime Minister’sAdvisory Council on Administrative Procedure Reform, with support fromthe US Agency for International Development (USAID) through the LinkSME projectwhich aims at promoting reform and enhancing the connectivity of small- andmedium-sized enterprises.

To assess compliance costs for land-related procedures, ateam of experts surveyed over 3,000 firms regarding three procedures, includingthe registration and issuance of certificates of land use rights, ownership ofresidential houses, and other assets attached to land for the first time; registrationof changes in land use rights, ownership of assets attached to land, andtransfer of investment capital in the form of land use rights; and change ofland use purposes.

The report pointed out that the main reason for such"sub-procedures" is the lack of a land database system and interconnectivity among the land management agencies at various levels.

Last year, the APCI score for land administrativeprocedures reached 71.4 out of 100, with an average compliance cost of 6.2million VND (269 million USD). The central key economic region achieved thehighest score of 86.4 and the lowest compliance cost of 3.3 million VND, whichis only 47% of the compliance cost in other key economic regions - the regionwith the lowest APCI score nationwide.

Vinh Phuc province demonstrated the best administrativeprocedures, with a total compliance cost of approximately 2.3 million VND perprocedure, equivalent to 68% of the average compliance cost in the top regionand 37% of the national average compliance cost.

Time cost accounted for 23% and direct cost made up 77% of thetotal compliance cost for conducting a land administrative procedure. Theaverage time required by businesses nationwide to complete a landadministrative procedure was 32.2 hours.

The southern key economic regionled the country in terms of time costs for land administrative procedures,scoring 83.3. Businesses in this region only spent around 20.1 hours tocomplete a land administrative procedure. The Mekong Delta key economic region hadthe lowest score for time costs at 58. Ba Ria-Vung Tau province demonstratedthe best practicality in terms of time required for land administrativeprocedures, with 6.9 hours, equivalent to 21% of the national average.

Thesteps related to preparing and completing the documentation accounted for 65.4%of the time required for administrative procedures. The on-site survey step wasalso one of the crucial steps, occupying 19.6% of the total time foradministrative procedures.

Roughly 34% of the surveyedbusinesses conducted on-site surveys, with an average time of about 6.3 hours, or19.6% of the total time for administrative procedures./.

VNA

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