Urgency to continue business condition reform: seminar

July 07, 2023 - 07:07
Deputy Minister of Planning and Investment Trần Duy Đông emphasized the urgency of fostering business environment reform, particularly in relation to the slowdown in recent efforts to improve business conditions
Nguyễn Thị Minh Thảo from the Central Institute for Economic Management (CIEM) speaks at the seminar. — Photo mekongasean.vn

HÀ NỘI — Deputy Minister of Planning and Investment Trần Duy Đông emphasised the urgency of fostering business environment reform, particularly in relation to the slowdown in recent efforts to improve business conditions at a seminar titled "Removing Barriers to Business Conditions for Business Development" held in Hà Nội on Thursday. 

He highlighted the Government's unwavering commitment to improving the business environment and national competitiveness in Resolution No 01/NQ-CP, issued in 2023, with four key solutions to achieve this goal.

The first area involves reforming the list of investment sectors, conditional business activities, and business requirements. The second area focus on the continued promotion of management reforms, specialised inspections of import and export goods and the effective implementation of the National Single Window. The third area entails rectifying inspections and examinations of enterprises to ensure they do not disrupt normal business operations. The fourth area concentrates on implementing solutions to enhance the quality of business support services.

Nevertheless, Đông expressed concern that efforts to improve the business environment have slowed down since 2020, receiving insufficient attention from ministries, sectors and local authorities.

Over the past two years, barriers related to business conditions have expanded with certain ministries and departments having issued and enforced stricter regulations concerning business requirements, Đông said. He noted that if this situation is not rectified promptly, it could undermine the progress made during the previous reform period.

The Ministry of Planning and Investment has conducted a comprehensive review of business reform between 2016-19. The review showed a significant number of decrees were issued, amending multiple regulations and simplifying approximately 50 per cent of business conditions.

Regarding the list of conditional business lines, there have been revisions over the years. The initial list of 267 industries was reduced to 243 in 2016 and further to 227 according to the Investment Law of 2020.

However, Nguyễn Thị Minh Thảo, head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management (CIEM), indicated that while the number of conditional business lines has decreased, the content has expanded. Many industries have regulations on business conditions in specialised laws, surpassing the number listed in the Investment Law of 2020.

Some businesses face difficulties due to excessive certificate requirements, hierarchical licensing restrictions, and frequent adjustments to sub-licences, even when there is no change in content, Thảo said. She cited examples of shortcomings in the business environment including regulations on fire prevention and fighting and environmental permits.

To further reform and improve the business environment, CIEM proposed various measures to address these issues. They recommended further reductions in the list of investment and conditional business regulations, as well as simplifying business conditions. They also called for stricter control over the addition of new regulations that could create unnecessary barriers. Improving the effectiveness and efficiency of consultation and examination of legal documents was another crucial aspect emphasised by CIEM.

During the workshop, representatives from various associations and businesses expressed their expectations for the Government to reinstate the reform programme and enhance the business environment.

They emphasised the importance of continuous direction in implementing solutions to improve the business environment. These solutions include amending legal regulations on business conditions, promptly addressing enterprise difficulties and shortcomings, and strengthening monitoring and independent assessment of reform outcomes.

Deputy Minister Trần Duy Đông said the ministry is currently conducting a comprehensive review of conditional business sectors and business requirements across 15 areas of State management overseen by various ministries and sectors. This review aims to identify difficulties in the business environment, including barriers related to conditional business sectors, business requirements and related administrative procedures.

"Based on the identification of shortcomings in the business environment, industries, and business conditions, the Ministry of Planning and Investment will propose corresponding plans and solutions to the Government and the Prime Minister," Đông said. — VNS

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