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Local firms still face barriers

Update: October, 13/2016 - 14:32
Representatives meet with authorities to get their businesses registered in Hà Nội. — VNA/VNS Photo Danh Lam

HÀ NỘI – Local enterprises face barriers in doing business, and they expect the State to improve the domestic business environment in order to encourage the development of enterprises.

Experts said this a dialogue on abolishing barriers in doing business on the occasion of Business’ Day – October 13 held by BizLIVE online magazine on October 11.

At the dialogue, Đoàn Duy Khương, deputy chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), said over the last few years, Việt Nam has achieved a high growth rate in gross domestic product (GDP) across the region and the world, but now, growth had began trending downwards.

VCCI has combined with the ASEAN Business Council and Lee Kuan Yew School of Public Policy to rank the competitiveness of countries in the region. The result was not optimistic for Việt Nam, Khương said, as the financial environment and infrastructure in Việt Nam was weaker than in many other ASEAN countries.

Võ Trí Thành, former deputy director of the Central Institute for Economic Management (CIEM), said Việt Nam’s economy has had many achievements and even more challenges.

In recent years, Việt Nam has undertaken administrative reform, especially in regard to enterprises, to become more transparent and friendly, he said. However, the high transaction cost was one of the reasons that local enterprises could not become larger, because the cost involved would affect the revenue of the enterprises.

Lawyer Trương Thanh Đức, chairman of the Basico Law Company, said there were three factors causing difficulties for local enterprises. They included barriers in doing business, technical standards and administrative procedures. For instance, the Ministry of Industry and Trade should be an agency to actively support the businesses, but the regulations of the ministry have created a lot of barriers, such as those on gas and land. These regulations have prevented small-sized enterprises from entering the market, Đức said.

Hương Vũ, Deputy General Director of Ernst & Young Việt Nam, said that existing policies were not consistent with reality. Việt Nam has been undergoing a process of international integration, and many multinational companies have come to Việt Nam, but accounting books must still be printed on paper. For a company that performs 20,000-30,000 internal transactions a day, it is impossible for them to store all transactions for a year.

The company has proposed sending soft copies of accounting books to the tax office but the office has not accepted this change, she said.

Meanwhile, Phạm Thành Hưng, deputy chairman of Cengroup, said enterprises have often been worried about violating existing regulations and circulars due to their complexity. Therefore, Phí Ngọc Trịnh, deputy general director of Hồ Gươm Garment Joint Stock Company, said local enterprises expected Resolution 35 to solve these difficulties and create a more favourable business environment.

Hương Vũ said the Government should reform tax collection activities, if not Resolution 35 would be difficult to implement.

Khương said the State’s relevant offices and the local business community have been compiling the Law on Small and Medium Sized Enterprises to reduce barriers on production and business activities, and give more support to small and medium sized enterprises in their future development. — VNS

 

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