return icon

Businesses worry about return of “old barriers”

The draft revised Decree 107/2018/ND-CP on rice export has worried local rice exporters as business conditions that had been previously removed may return.




Specifically, the draft, compiled by the Ministry of Industry and Trade, sets the minimum capacity of specialized warehouses for storing paddy and rice and the minimum capacity of mills and rice processing establishments. These business conditions were previously in Decree 109/2010/ND-CP on rice export, issued on 4/11/2010 and were removed in 2018.

The Ministry of Industry and Trade explained that it is necessary to have minimum standard for rice processing and trading establishments to ensure equality and fair competition. In addition, it is also necessary to standardize investment in infrastructure, in order to ensure synchronization of processing capacity of the industry.

According to the Vietnam Chamber of Commerce and Industry (VCCI), Decree 107/2018/ND-CP issued in 2018 is considered a step forward in reforming business conditions, creating a favorable business environment for rice traders. This is a huge change. Thanks to the simplification of business conditions, many enterprises have been allowed to participate in the rice export market, previously in the hands of state-owned enterprises. By November 2021, there were 205 traders granted certificates of eligibility for rice export by the Ministry of Industry and Trade.




The Ministry of Industry and Trade proposed reviving these business conditions, but it did not give convincing arguments. Setting the minimum size and capacity for rice exporters' establishments will not ensure fairness for small and medium enterprises when they want to participate in this market.

Moreover, the State should not use the business conditions tool, to require all traders doing business in the market to have a large scale, while not convincingly demonstrating this policy is suitable. "Maybe this is a signal of a change in the business environment in Vietnam and the Industry and Trade industry in a negative direction," VCCI said.

Ministries and state agencies do not want to give up power.

The risk of the return of business conditions was warned by economic experts two years ago and so far this concern has been real. It can cause the business environment to become suffocated and regressive. Over the past month, VCCI has made recommendations related to administrative procedures and business conditions in the fields of investment, construction, tax and customs.

It is recommended that the State management agencies respect the competitive market and the business rights of enterprises. “The competitive market will be the best filter for capable businesses. We hope that the State management agencies set this goal clearly when developing and proposing business conditions," said Mr. Hoang Quang Phong, Vice Chairman of VCCI.

The report "Business environment reform program: business perspective 2020" published by VCCI on April 20, 2021 shows that the reform momentum is slowing down. One area with the most positive movement in recent times is the cutting of business conditions, which, according to VCCI, "peaked" in 2018, but since 2019, the enthusiasm of ministries and sectors has decreased significantly.

Worryingly, the percentage of enterprises that have to apply for a certificate of business eligibility is on the rise. In 2018, 48% of enterprises participating in the survey said they had to apply for a certificate of business eligibility. The figure was 52% in 2019 and 59% in 2020.




Expert Nguyen Dinh Cung said that business conditions are a type of barrier that greatly affects market entry, restricts competition, limits creativity and adversely affects small and medium enterprises. Therefore, over the past time, the Government has asked ministries and agencies to review and propose cutting 50% of business conditions. After that, many ministries and management agencies announced that they had cut 50-60%, but in fact business conditions still exist and now they are coming back.

Mr. Phan Duc Hieu, of the Central Institute for Economic Management, said institutional reform is facing difficulties because the power of ministries and state management agencies is too great. Cutting off business conditions is cutting out privileges, which many don't want to do. Meanwhile, businesses want the economic institution to be more efficient and free, want to minimize the intervention of the State in simple activities. If this can be done, the economy will be better.

Mr. Nguyen Hoai Nam, Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that there should be specific sanctions for poor quality documents that affect business investment activities.

Some lawyers said that in some countries businesses and people can sue the State if they are issued wrongly. In Vietnam, the agencies that issue documents that cause damage and loss to businesses and people are still protected.

Tran Thuy

Vietnam needs to cure ‘stagnation disease’ to 'take off'

Vietnam needs to cure ‘stagnation disease’ to 'take off'

Prime Minister Pham Minh Chinh, after taking office, has been paying high attention to fostering the public apparatus’ proper implementation of their functions and tasks, especially the fulfillment of the great responsibilities assigned to them.

Reform lessons: when ministries, branches take decisive action

Reform lessons: when ministries, branches take decisive action

Maintaining a high ranking and improving electricity access scores continue to be the mission of the reform program.


Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.

Enjoying Quang-style noodle soup in the place where it was born

Phu Chiem Village in Dien Phuong Commune, Dien Ban District, Quang Nam Province, is where the popular Quang-style noodle soup was first created. And where better to taste this specialty than the place where it was born.

Exploring hidden spots on Co To Island

Aside from white sand, the blue sea and fresh air, Co To Island in Quang Ninh Province has several other beautiful spots that are worth a visit.

Vietnamese leaders extend sympathy to Cuba over oil tank explosion

Top Vietnamese leaders have sent messages of sympathy to their Cuban counterparts over severe losses caused by a massive blaze in an oil storage facility in Cuba’s province of Matanzas on August 5.

CNN reporter loves Vietnamese fish sauce

Chris Dwyer, a reporter for CNN, says he has loved Vietnamese fish sauce made in Phu Quoc (South Vietnam), though it was not easy to taste at the beginning.

Apple CEO Tim Cook appreciates Vietnam market potential

Vietnam, together with Brazil, Indonesia and India that are emerging markets, have made practical contributions to Apple’s group’s outstanding performance in the second quarter of this year, said CEO Tim Cook.

Electronics manufacturers ‘forget’ to recall or recycle used products

Large electronics manufacturers are still not willing to participate in the collecting and recycling of electronic waste to ensure a good living environment for people.