VietNamNet Bridge - Businesses have complained about time-consuming examinations of imports and exports by government agencies, claiming that they take up 30 percent of total 25 work items that businesses must fulfill.

Nguyen Thanh Nghia, chair of Dai Thien Loc, a steel manufacturer, complained that it cost 1.7 billion to have every consignment of 20,000 tons of hot rolled steel imports examined as stipulated by Circular No 44 issued in 2013. 

This includes a storage fee for 30 days during which businesses have to follow necessary procedures.

A representative from Long An-based Ching Lu Company, specializing in making sports shoes for Nike, said it costs the company VND40-50 million a month and a lot of time to go to state management agencies to have products tested for formaldehyde, as requested by the Ministry of Industry and Trade’s Circular No 32.

According to Pham Thanh Binh, consultant for the USAID-funded Vietnam Governance for Inclusive Growth (GIG), since early 2015, exporters have to bring their export products for a phytosanitary test, though this has not been requested by foreign importers. 

It costs enterprises tens of millions of dong to have large consignments tested.

Binh noted that too many tests were required while the number of violations discovered had been modest. 

A survey by GIG conducted at some examination agencies and customs bodies showed that only one percent of import/export consignments could not satisfy the requirements for import/export.

GIG noted that ministries were requiring more tests on imports/exports, which has placed difficulties on enterprises. 

Dr. Nguyen Dinh Cung, head of the Central Institute for Economic Management (CIEM), noted that if the time businesses have to spend on import/export procedures was shortened by one day, the national economy would save one billion dollars a year.

Businesses want gov’t to take action

Many reasons have been cited to explain why examinations have become a nightmare for businesses.

One product, for example, is put under control of many different state agencies. 

The agencies all require businesses to have technical tests on products, but they do not recognize the exam results from other agencies and other countries that have higher standards.

While Vietnamese agencies require strict examinations, their facilities cannot carry out tests quickly. 

As a result, businesses waste time waiting for the test results from examining agencies, and have to spend more money on storage of goods and additional fees.

Binh suggested three solutions to ease the burden on businesses: first, apply a risk management method under which different examination levels would be applied to different businesses; second, connect data from relevant agencies, so that the agencies can recognize each other’s exam results; and third, request tests on only the most important products.

TBKTSG