Businesses register at the Hanoi Department of Planning and Investment (Photo: VNA) Hanoi (VNS/VNA) - Prime MinisterNguyen Xuan Phuc has demanded that all corresponding government departments,agencies and institutions to adjust policies as part of an “action-minded”government, to unburden Vietnamese firms of unnecessary business regulations,namely redundant business permits and categorisation.
In the past month, the PM has requested the VietnamChamber of Commerce and Industry (VCCI) and the Central Institute for EconomicManagement (CIEM) to conduct research on business conditions in Vietnam, withemphasis on legislation and procedures that may be deemed obstructive tobusiness development.
Findings from this research must be submitted tothe Ministry of Planning and Investment (MPI) and the Ministry of Justice (MoJ)by August 10.
Officials from the two ministries will thencompile a list of legal documents on business conditions that the VCCI and CIEMconsider excessive, and work together with the Government Office so that the PMcan receive a full report with detailed solutions for a better businessenvironment by August 25.
The move is considered necessary for a“government of action and integrity that nurtures development and better servesthe people”, according to PM Phuc.
A key issue that calls for the PM’s attention isthat out of the current roster of 243 business branches and sectors thatrequire legal permissions from government authorities, 16 business branches donot in fact need such permits, said Dau Anh Tuan, Director General of the LegalDepartment of the VCCI.
For example, the logistics sector alreadyconsists of numerous sub sectors with their own business permits, and yet stillrequires its own permit. Such overlaps are both time consuming and hard tomanage. This also applies to other businesses in the import – export sectorthat require a permit for every part of the production chain.
This was further emphasised by PM Phuc at theGovernment’s regular meeting last July, where he commented that “these permitsare proliferating to the point that businesses complain to no end, and they arethe cause for further, more serious administrative problems”.
The VCCI found that there are currently a total5,719 business conditions, commonly referred to as permits, with the Ministryof Industry and Trade (MoIT) coming in first place, issuing 1,220 permits for27 business branches under management and the Ministry of Construction (MoC) inlast place with 106 permits for 17 business branches.
Tuan said that out of the three main businesssectors of trade, transportation and technology, the VCCI also found many otherrequirements that are obstructing market growth and business expansion.
He gave an example of regulations requiringtransportation companies to have a detailed business plan approved by thecorresponding authority, or for marine shipping companies to have anestablished legal office in order to be given official business permission.
Tran Huu Huynh, Chair of the VietnamInternational Arbitration Centre (VIAC), said in an interview withthe Government’s online newspaper that even though the Government and otherdepartments have been making tremendous efforts in constructing the list ofbusiness permits in the 2014 Law on Investment, there are still deficienciesand a lack of practicality.
"This is no longer the work of governmentadministrative officials, but simply a matter of firms’ self management, whichcan be adjusted through market forces that do not require any governmentalinterference," Huynh concluded.
Tuan went on to say that he was deeply impressedwith the PM’s urging of government bodies in charge of business rules and permitsto lessen the burden for Vietnamese firms. He did not consider the PM’sdirection stemming from any previous agenda, such as Resolution 19 orResolution 35, but rather from his own ideas, sense of action and leadership.
"I am certain the PM and the Government’sOffice are gearing up for practical and effective action to clear the path tobusiness development," said Tuan.
Nonetheless, Huynh felt that at present, thereis still much to be done.
He said the VCCI and CIEM’s research is limitedto a number of ministries and business branches, roughly 25 percent of totalbusiness permits. Huynh urged that there must be a comprehensive and thoroughsurvey across all business sectors.
Huynh also suggested there are hidden permitsand legal loopholes that can cause difficulties for firms, which must bepromptly discovered and dealt with to prevent future problems.
Tuan added that there should be open discussionsinvolving firms, economic experts and government administrators, in order toachieve complete and satisfactory solutions.
At the Vietnam Private Sector Forum held on July31, 2017, up to 65 percent of firms answered that an action-minded governmentis their ideal, with 24 percent choosing a government with integrity at the topof their list and 11 percent opting for a constructive government instead.-VNA
In the past month, the PM has requested the VietnamChamber of Commerce and Industry (VCCI) and the Central Institute for EconomicManagement (CIEM) to conduct research on business conditions in Vietnam, withemphasis on legislation and procedures that may be deemed obstructive tobusiness development.
Findings from this research must be submitted tothe Ministry of Planning and Investment (MPI) and the Ministry of Justice (MoJ)by August 10.
Officials from the two ministries will thencompile a list of legal documents on business conditions that the VCCI and CIEMconsider excessive, and work together with the Government Office so that the PMcan receive a full report with detailed solutions for a better businessenvironment by August 25.
The move is considered necessary for a“government of action and integrity that nurtures development and better servesthe people”, according to PM Phuc.
A key issue that calls for the PM’s attention isthat out of the current roster of 243 business branches and sectors thatrequire legal permissions from government authorities, 16 business branches donot in fact need such permits, said Dau Anh Tuan, Director General of the LegalDepartment of the VCCI.
For example, the logistics sector alreadyconsists of numerous sub sectors with their own business permits, and yet stillrequires its own permit. Such overlaps are both time consuming and hard tomanage. This also applies to other businesses in the import – export sectorthat require a permit for every part of the production chain.
This was further emphasised by PM Phuc at theGovernment’s regular meeting last July, where he commented that “these permitsare proliferating to the point that businesses complain to no end, and they arethe cause for further, more serious administrative problems”.
The VCCI found that there are currently a total5,719 business conditions, commonly referred to as permits, with the Ministryof Industry and Trade (MoIT) coming in first place, issuing 1,220 permits for27 business branches under management and the Ministry of Construction (MoC) inlast place with 106 permits for 17 business branches.
Tuan said that out of the three main businesssectors of trade, transportation and technology, the VCCI also found many otherrequirements that are obstructing market growth and business expansion.
He gave an example of regulations requiringtransportation companies to have a detailed business plan approved by thecorresponding authority, or for marine shipping companies to have anestablished legal office in order to be given official business permission.
Tran Huu Huynh, Chair of the VietnamInternational Arbitration Centre (VIAC), said in an interview withthe Government’s online newspaper that even though the Government and otherdepartments have been making tremendous efforts in constructing the list ofbusiness permits in the 2014 Law on Investment, there are still deficienciesand a lack of practicality.
"This is no longer the work of governmentadministrative officials, but simply a matter of firms’ self management, whichcan be adjusted through market forces that do not require any governmentalinterference," Huynh concluded.
Tuan went on to say that he was deeply impressedwith the PM’s urging of government bodies in charge of business rules and permitsto lessen the burden for Vietnamese firms. He did not consider the PM’sdirection stemming from any previous agenda, such as Resolution 19 orResolution 35, but rather from his own ideas, sense of action and leadership.
"I am certain the PM and the Government’sOffice are gearing up for practical and effective action to clear the path tobusiness development," said Tuan.
Nonetheless, Huynh felt that at present, thereis still much to be done.
He said the VCCI and CIEM’s research is limitedto a number of ministries and business branches, roughly 25 percent of totalbusiness permits. Huynh urged that there must be a comprehensive and thoroughsurvey across all business sectors.
Huynh also suggested there are hidden permitsand legal loopholes that can cause difficulties for firms, which must bepromptly discovered and dealt with to prevent future problems.
Tuan added that there should be open discussionsinvolving firms, economic experts and government administrators, in order toachieve complete and satisfactory solutions.
At the Vietnam Private Sector Forum held on July31, 2017, up to 65 percent of firms answered that an action-minded governmentis their ideal, with 24 percent choosing a government with integrity at the topof their list and 11 percent opting for a constructive government instead.-VNA
VNA
