HÀ NỘI — Prime Minister Nguyễn Xuân Phúc emphasised the need of “quality over quantity” in law-making as he continued to chair the monthly cabinet meeting on Tuesday morning.

While acknowledging the importance of institution building, PM Phúc said institutions and laws should not hinder the development of the country’s socialist-oriented market economy. Regulations on land, construction, housing and investment must urgently "clear the way for trade", he added.

Phúc asked ministries and State agencies not to set additional conditions for business, apart from those required by the National Assembly and the Government, as these may obstruct trade and investment.

He urged thorough study to reduce the number of planning regulations, saying that having as many as 20,000 was both costly and ineffective.

The PM assigned the Ministry of Planning and Investment and related ministries to review the Law on Public Investment and report remaining problems to the Government before July 30 so that the Government can submit it to the NA.

He also asked for a clearer division of authority and responsibility of ministries, sectors and localities in public investment disbursement to solve the delay in disbursement.

Administrative reform

On Monday, the Prime Minister told the meeting that administrative reform from the grassroots to central level should be improved.

Ministries and agencies were asked to increase dialogue with businesses and citizens, deal with their complaints and avoid red tape.

The PM stressed the need to speed up the progress of equitisation of State-owned enterprises and called for the involvement of resources, particularly public-private partnerships.

Regarding credit accession for businesses, PM Phúc proposed that the State Bank of Việt Nam create favourable conditions for enterprises, especially small- and medium-sized enterprises, start-up enterprises and those investing in infrastructure construction. He said lending rates should be lowered to help enterprises reduce costs and enhance competitiveness.

To enhance the effectiveness of the State and private sector, the PM suggested that the Ministry of Planning and Investment coordinate with the Việt Nam Chamber of Commerce and Industry and the Association of Small and Medium Enterprises in initiating mechanisms to improve the efficiency of the private sector, which accounts for 40 per cent of the country’s GDP.

The total value of assets of Vietnamese private enterprises is about US$400 billion, of which fixed assets are over $180 billion. If the capital use of the private sector increases even 1 per cent, there will be $2 billion more in profit or 1 per cent of the country’s GDP growth, he said. — VNS