Ministries say they have cut 60 percent of business conditions to simplify administrative procedures that may prevent businesses from joining the market. But the figure is disputed by businesses.
Chair of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said at a workshop held recently that administrative procedure reform has brought only some achievements.
“Ministries said 60 percent of business conditions have been removed. But the figure just exists on paper. The real figure is just 30 or 40 percent. The procedures for businesses to join the market remain complicated and overlap,” Loc said1.
VCCI’s Legal Department’s head Dau Anh Tuan said the business environment won’t improve if the requirements that clip businesses: wings or make deep interventions into their affairs continues to exist.
He named a series of business conditions that he finds unnecessary, including the requirement on establishing liquor and petroleum product distribution network; and the requirement on business plans and credit rating applied to the postal sector.
|In many cases, businesses have to receive assessments from two state management agencies to obtain licenses for one business activity. And there are many different ways of interpreting the same regulations.|
In many cases, businesses have to receive assessments from two state management agencies to obtain licenses for one business activity. And there are many different ways of interpreting the same regulations.
Besides, business conditions are mentioned in many different legal documents. The 2014 Investment Law contains provisions on prohibited and conditional business fields. The 2005 Commercial Law also has provisions about the types of goods subject to trade prohibition or limitation. Both laws cover the conditions of business entities.
Nguyen Van Dung, chair of the HCM City Vietnam Gemstones Jewelry and Art Craft Association, said that there are still many unreasonable business conditions.
The government’s Decree No 24 considers gold trade as a conditional business field and sets very strict regulations to manage trading activities.
To obtain licenses for gold trading, businesses have to obtain certificates on environment, security, and fire protection, and have to meet requirements on area. Traders must show their permanent residence certificates at the addresses where they register the business facilities.
The decree also covers the activities of trading jewelry and fine arts, but the products do not in any way affect the bullion gold and forex markets.
Nguyen Hoai Nam, deputy secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), said the requirements set by state management agencies on seafood products are even stricter than those in the US.
Three weeks ago, VASEP had a working session with the Ministry of Science and Technology about the amendment of the regulations related to the granting of bar codes to seafood exports.
“The ministry said that we are just one of hundreds of associations which contribute to the country’s export turnover,” Nam said.
“They also said it would be very difficult and time consuming to amend decrees,” he added. “And until the regulations are amended, goods will still have to be kept at ports, which costs businesses big money."
Problems in land access and administrative procedures continue to exist, making it difficult for industrial real estate to develop over the long term, experts say.
The Government wants the business community to provide feedback and input to help improve the National Public Service Portal, heard a conference held by the PM’s Council on Administrative Reform and the WB in Hanoi on May 19.