Target of the reducing business conditions process... the results are neither meeting the expectations of enterprises, nor government targets

Target of the reducing business conditions process... the results are neither meeting the expectations of enterprises, nor government targets

In fact, the process to cutbusiness conditions... not achieve a result as expectations. Actual experiencehas shown that removals of the licensing procedurescost much time, money and labor, howeverit can recover quickly and after each restore will be more complicated.

Image: Workshop sence

The morning of 20 November, under the Aus4Reform Program, the Vietnam Chamber of Commerce and Industry (VCCI) held a workshop on "Report on implementation of Resolutions 19 and 35 on business environment reform and business development - views from business" in Hanoi.

Unequal improvement in among of sectors, localities

Mr. Dau Anh Tuan - the Director of the Legal Department of VCCI, Director of Project of Business voice enhancement in Economic Restructuring (under Aus4Reform Program) said that after 5 years of implementing Resolution 19, according to VCCI: in general, private sectors in survey said that investment environment has improved significantly in recent years. However, the level of improvement is not equal between sectors, localities.

Mr. Dau Anh Tuan, the Director General of the Legal Department of VCCI, Director of Project of Business voice enhancement in Economic Restructuring (under Aus4Reform Program)

The survey of 10,000 private sectors in different fields of Resolution 19, the two best-evaluated fields are business start-ups and electricity access. Meanwhile, the fields have involved to customs procedures, investorsprotection and bankruptcy without significant improvement.

In the view of enterprises, they must submitsub-licenses popularlywith many troubles. According to the PCI survey 2017, up to 58% of enterprises said they have to apply for a conditional business license. Of these, 42% complain about red-tape to get permits.

According to Dr. Nguyen Dinh Cung (Director of the Aus4Reform Program): The ministries have reported to have achieved the goal of cutting at least 50% of business conditions; however, according to our assessment, cutting having net impact is over 40%. The actual results of the process of reducing business conditions ... are not meeting expectations. Actual experience has shown that removals of the licensing procedures cost much time, money and labor, however it can recover quickly and after each restore will be more complicated.

Mrs. Pham Chi Lan also said that the target of 1 million businesses by 2020 is a big challenge. She proposed further focus on reforming state system. "The administrative reform is for government agencies rather than enterprises", Mrs. Lan emphasized, while proposing further strengthening the reduction of business conditions in the context of many ministries are not active.

Many localities have improved quite well in terms of procedures

Decree No. 15/2018/ ND-CP (replacing Decree No. 38/2012/ ND-CP) on food safety is one of the best decrees under the assessment of many enterprises. Decree No. 15/2018/ ND-CP is regarded as a change not only on the surface of the law, but also on management thinking.

A remarkable signal is that enterprises in some localities have a good assessment of the changes in the import-export sector. These are the focal provinces for active import and export and some provinces with export-oriented enterprises such as Lang Son, Vinh Phuc, Hai Phong, Da Nang, Binh Dinh, Vung Tau, Binh Duong, Long An...

Some provinces and cities are highly appreciated by the business community such as Dong Thap, Da Nang, Binh Dinh, Bac Lieu, Can Tho, Vinh Phuc, An Giang and Long An. The region with the most percentage of active enterprise is the Mekong Delta.

The majority of businesses and lawyers have seen significant improvements in many localities regarding the implementation of administrative procedures in recent years. However, there are some opinions showing the standstill, even the slowdownon the convenience of doing procedures in some localities highly appreciated.

Electronic taxation, customs and social insurance in recent years have been highly valued by businesses. There was enterprises complaining about difficulty when carrying out tax, customs and social insurance procedures in the previous period; however, in the last 4-5 years, there is no such situation.

However, in fact, the proportion of people and enterprises applying for electronic procedures is still very low. The status of filing online, but not success, then must return to submit directly is reflected much by businesses and many lawyers. There are many "glitches" listed such as: Unable to upload profile; Uploaded but no leave a message to inform successful or fail or document number for searching...