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Firms urged to review business conditions

Update: April, 07/2015 - 08:57
In the past, inadequate legislation was one of the most important growth inhibitors and the new legal and regulatory framework would encourage private investment, accelerate business development and boost economic growth. — Photo dantri
HA NOI  (VNS) — Domestic enterprises seem to be indifferent to the conditions imposed on their business activities, even though it directly impacts their investment, Nguyen Dinh Cung, director of the Central Institute for Economic Management, said.

Cung said at a seminar on conditions imposed on businesses entitled, "International experiences and challenges in Viet Nam," held in Ha Noi yesterday that businesses having to follow such conditions would affect firms' costs and opportunities as they posed difficulties for companies.

"It is for this reason that I urge enterprises and associations to participate in the process of reviewing all conditions imposed on business activities," he said.

He added that there were around 6,000 specific conditions that businesses had to contend with, which were outlined in up to 900 pages. He wondered why there were so many conditions posing risks to businesses and investors in Viet Nam.

Dau Anh Tuan, head of the Viet Nam Chamber of Commerce and Industry's Legal Department, said businesses were apathetic about the situation as their ideas were not recognised.

For example, printing companies were surprised with the conditions existing in this field, which required licences for expansion activities and for mechanising imports.

Tuan said the requirement for licences was lifted in 2000 to create favourable conditions for printing businesses and international integration in the production chain of Samsung and Canon.

He wanted to know why the licences had not been made a pre-requisite again.

"In addition, collecting ideas online had not drawn the attention of enterprises," he said.

However, experts at the event said new enterprise and investment laws, which took effect from July 1, had been created by the government to protect consumers, the environment and the community, as well as to promote fair trading and competition.

There was general consensus among the economic experts in attendance that the laws would better govern how businesses interacted with their suppliers, customers and other businesses.

They will also more clearly outline the rights of businesses and business owners when conflicts arise and therefore result in a business and investment climate more conducive to the needs of the business community.

In the past, inadequate legislation was one of the most important growth inhibitors and the new legal and regulatory framework would encourage private investment, accelerate business development and boost economic growth.

Speaking at the seminar, Professor Michael Wools emphasised that creating a favourable business climate was one of the pivotal factors central to improving the nation's competitive edge.

They are bound to be some problems with the new laws, Wools said, adding that governmental agencies should supervise their implementation closely and make recommendations for improvement if the need arises. — VNS

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