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State management must be revamped

Update: January, 16/2019 - 07:00
A VCCI report points out that State management agencies are still unsure of how to manage new business models like Grab. - Photo
Viet Nam News

HÀ NỘI — The Vietnamese Government has hastened reforms but more renovations in State management are needed to facilitate businesses and effectively manage new business models, Chairman of the Việt Nam Chamber of Commerce and Industry Vũ Tiến Lộc said.

Lộc said at VCCI’s conference reviewing business regulations on Tuesday that many reforms were still not efficient and outdated thinking cast a shadow on the development of new business models.

Hesitation remained in the resolution of core issues such as land ownership rights, intellectual property, contract enforcement and accountability, he said.

“Building a safe and advantageous business climate remains a difficult process,” Lộc said, adding that the biggest bottleneck was the overlap and lack of transparency in the business law system.

Lộc said that VCCI would submit a proposal of amendments to unreasonable business regulations to the National Assembly and the Government every six months.

Việt Nam faces with a wave of technological development in which new business models would appear, Lộc said, adding that policy-makers responses are critical to promoting development.

VCCI’s report about business regulations also pointed out shortcomings in policy responses to new business models like ride-hailing service Grab and rental service Airbnb.

Đậu Anh Tuấn, head of the VCCI’s Legal Department, said that the emergence and rapid expansion of new business models using technology was causing serious conflicts, requiring State management agencies to develop proper management mechanisms for such business models.

"State management agencies seem to have not figured out proper management mechanisms," Tuấn said, adding that this could present a challenge to economic development.  

For example, regarding transportation platforms like Grab, despite many discussions, no specific management mechanisms had been suggested for this business model. For Airbnb, the management agencies had been quiet.

Tuấn said that reviewing business regulations should be conducted regularly and, in the process, it was necessary to consult individuals and firms affected.

The Vietnamese Government focused on removing barriers for businesses and promoting the development of the private economic sector in 2018.  However, the simplification and removal of business prerequisites and inspection procedures for customs clearance was inefficient, Tuấn said.

Many ministries and local authorities were not proactive and carried out reforms ineffectively, just to cope with pressure from the central Government, he stressed.

Phan Đức Hiếu, Deputy Director of the Central Institute for Economic Management, said that the legal system should not only focus on removing business barriers but also promoting development.

Hiếu said that the biggest challenge to the current reform effort in Việt Nam was the lack of impetus among local-level management agencies.

The pressure for reform mainly came from the central Government, Hiếu said, adding that few ministries and local authorities were active in carrying out reforms.

He pointed out another challenge was the lack of control over quality of new legal documents about the business environment.

Firms were still in a matrix of legal documents and it was necessary to inform them about changes in policy, Hiếu said.

According to the VCCI’s report, the central-level State management agencies in 2018 issued 948 legal documents, including 16 laws, 18 National Assembly resolutions, one National Assembly Standing Committee order, 169 Government decrees, 51 Prime Minister’s decisions, 590 circular of ministries and 47 others. — VNS

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