VietNamNet Bridge - The goal of cutting 50 percent of business sub-licenses in 2018 may be unattainable as many ministries still don’t have preliminary plans to simplify business conditions.


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Nguyen Dinh Cung, head of CIEM


According to the Central Institute of Economic Management (CIEM), the Ministry of Construction (MOC) is consulting with the government on business conditions set up by the ministry. 

The other four ministries have drafted government decrees on amending business conditions, but have not submitted to the government. These include the Ministries of Transport, Healthcare, Agriculture & Rural Development and Natural Resources & Environment.

It is expected that by October 31, 1,968 business conditions will be cut or simplified.

The goal of cutting 50 percent of business sub-licenses in 2018 may be unattainable as many ministries still don’t have preliminary plans to simplify business conditions.

The other ministries have checked business conditions, but have not drawn up plans on cutting the conditions, including the State Bank, and ministries of Finance, Culture, Sports & Tourism, and Education & Training.

Meanwhile, the ministries of Information & Communication, Science & Technology, Labor, War Invalids & Social Affairs and National Defence still have not checked and drawn up plans.

CIEM’s head Nguyen Dinh Cung voiced his concern that five months may be not enough for the ministries to fulfill their tasks prior to October 31, 2018 as requested.

In the first quarter, several ministries set up more business conditions soon after they eliminated some old conditions. 

Cung said Vietnam has gone far in the path of simplifying business conditions to facilitate business development, but it is still not near the ‘ASEAN 4’ goal in business environment. 

The number of business conditions cut so far remains low compared with the target of 50 percent, and the number of product items subject to professional examination is still low compared with the target of eliminating 50 percent.

The government set a challenging goal in 2018, jumping 8-18 grades in the World Bank’s ranking in Doing Business.

Cung said the business community wants measures to cut official costs and unofficial costs as well. 

“The cutting of unofficial costs will be implemented only when businesses make transactions online, i.e. businesses don’t work face to face with officials,” Cung said, adding that under-the-table fees are very big now, which are unpredictable for businesses.

Chair of the Vietnam Chamber of Commerce & Industry Vu Tien Loc suggested that the government think of measures that can help cut business costs as well.

About 60 percent of businesses are small scale. Loc believes that now is the time to ease the tax and fee burden on businesses to help them cut production costs.


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