Vietnam’s target of having a safe and favorable business environment is still far away, as many government agencies still dictate new business models with old mindset, according to Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI).
Overview of the conference. Source: Nguyen Tung.
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According to Loc, the overlapping and inconsistency of the legal system also cause difficulties for both citizens and enterprises.
Nevertheless, Dau Anh Tuan, director of VCCI’s Legal Department, said that most ministries have attained positive results in removing and simplifying business conditions in 2018 through the issuance of 25 decrees and revision of other 80.
The move was in response to the government's request of removing 50% of total business conditions at all ministries and ministry-level agencies before October 31.
“Whether the result is substantial or not, it is a different story,” Tuan added.
Tuan referred to the removal of circular No.37 under the Ministry of Industry and Trade (MoIT) on permitted limits of content of formaldehyde in textile products, which was once seen as a highlight of government’s effort in easing business conditions. However, according to a textile company, Circular No.21 in replacement of No.37 now puts enterprises in a difficult situation with more requirements on formaldehyde.
Phan Duc Hieu, vice director of the Central Institute for Economic Management (CIEM), expressed concern that all reforms are initiated by the central government, while no ministry and agency has proposed removing business condition under their respective administration.
“Motivation for reform would fade away once the government stops pushing for reform,” Hieu stressed.
In 2019, the government continues to set target of removing 50% business conditions, however, Hieu said a different approach is needed for more substantial results.
Hieu proposed the division of investigation and quality control units from ministries and agencies for greater efficiency. In the long term, drafting legal documents should be the responsibility of specialized agency with expertise on the field, instead of the law enforcement agencies.
In a directive issued last July, Prime Minister Nguyen Xuan Phuc strictly prohibited government agencies and ministries from creating new business conditions or abusing specialized inspection.
According to the PM, business condition removal is one of the key measures for economic growth and efficiency, requiring strong efforts from government leaders and ministers.
