return icon Vietnamnet.vn

Institutional reform needed to improve VN business environment

Institutional reform is facing difficulties because the power of ministries, State agencies and local authorities is too great. Proposals to cut off privileges and the "ask-give" mechanism are not welcome by many people who benefit. 

Without strong determination, it will be difficult to implement reform.

The business environment

{keywords}

 

 

According to the Ministry of Planning and Investment, on the global ranking of 2021, Vietnam's business environment reform saw many indicators fall.

Specifically, the Innovation Index decreased by 2 places, from 42nd to 44th; Sustainable development fell from 49th to 51st; Property rights down from 78th to 84th; and Corruption perception down from 96th to 104th.

According to the Ministry of Planning and Investment, since 2020, Vietnam's business environment index has slowed down, possibly because relevant agencies and the authorities focused their attention on the prevention of the Covid epidemic. The Ministry mentioned this situation in a report recently submitted to the Prime Minister.

According to the Vietnam Chamber of Commerce and Industry (VCCI), the legal system for business has huge shortcomings, mainly the lack of consistency and overlap between legal documents on investment and business activities.

For example, the Laws on Investment, Land, Construction, Real Estate Business, Housing, Environmental Protection, and Natural Resources do not reach consensus on conditions, authority, records, and time deadline for carrying out the related procedure. Thus, investors do not know which procedure should be done first. Due to the inconsistency of legal documents, project implementation takes a long time, causing increasing costs and risks for businesses. This makes the business environment less favorable.

Resolution 02 to cut off privileges

Resolution 02/2022/NQ - CP on "main tasks and solutions to improve the business environment and enhance national competitiveness in 2022", issued by the Government, is considered an action plan to drastically improve the business environment. This resolution is said to “touch” the power of many ministries and agencies.

To implement Resolution 02, the Government asked ministries and agencies to work out specific programs, action plans and specific documents and submit them to the Government for consideration prior to January 20, 2022. But many agencies failed to meet the deadline.

 

{keywords}

 

 

Expert Nguyen Dinh Cung said that Resolution 02/2022/NQ-CP aims to reduce the list of conditional investment and business lines and reform business conditions; remove barriers to investment and business activities caused by overlapping, conflicting, unreasonable and different legal regulations; promote reform of management, specialized inspection of exported and imported goods; speed up reform of land registration and renewal of land administration; and reform, reduce and simplify administrative procedures and business regulations in association with promoting decentralization, empowering local authorities...

These tasks cannot be done by an individual ministry or agency.

On February 14, 2022, the Minister of Planning and Investment signed Decision No. 170/QD-BKHĐT, establishing a working group to implement Resolution 02/2022/NQ-CP.

Economist Ngo Tri Long said that in 2021, more than 100,000 businesses left the market, and in January 2022 alone, this number was 38,409. This is the largest number ever. More than ever, regulatory reform to create favorable conditions for businesses at this time is the most important. The removal of procedures and regulations that are barriers will help businesses to recover.

Some argue that institutional reform is facing difficulties because the power of ministries, state agencies and local authorities is too great. Proposals to cut off their privileges, thus, are not welcomed by many people. Therefore, without strong determination, it will be difficult to execute reform.

According to economic experts, serious improvement of the business environment in the current circumstances will not only help improve the country's position on international rankings, but also increase the resilience of the economy amid the pandemic.

Tran Thuy

Vietnam needs a 'conductor' for renovation

Vietnam needs a 'conductor' for renovation

Improving the business environment and enhancing competitiveness are priorities in the tasks assigned by the Government to ministries and agencies in 2022. This is a necessary addition to the recently approved economic growth and recovery plan.

Policy lobbying in Vietnam

Policy lobbying in Vietnam

In recent years, businesses and people have increasingly participated in the policy making process.

MORE NEWS

25 Apple ’s partners have factories set up factories in Vietnam

The number of Apple manufacturing partners setting up their factories in Vietnam has increased to 25 at present, four more than the 2020 figure, the tech giant said in its list of supply partners for the fiscal year 2021.

VIETNAM NEWS HEADLINES OCTOBER 5

Hanoi inaugurates new road tunnel to address traffic congestion

Netlflix asked to remove "Little Women" for distorting history

The request was made by the Authority of Broadcasting and Electronic Information, under the Ministry of Information and Communications, according to Deputy Director General Le Quang Tu Do.

UOB upgrades 2022 growth forecast for Vietnam to 8.2%

Given Vietnam’s strong economic recovery in the third quarter, the Singapore-based United Overseas Bank (UOB) has raised its forecast for the country’s GDP growth this year to 8.2%, from the previous prediction of 7%.

Vietnam rice prices surge on Indian rice export restrictions

Prices of Vietnamese rice surged in the global and domestic markets after India announced restrictions on broken rice exports and a 20% duty on exports of various other types.

Deaths of Adenovirus total nine, infections increase with many severe cases

The child died at the National Children's Hospital on Monday and is not thought to have any health issues but had been treated for the past 50 days and recently needed a ventilator.

VIETNAM BUSINESS NEWS OCTOBER 5

Vietnamese fleet to handle a fifth of exports by 2030: transport ministry

A day in the life of a fisherman in ​​Mong Cai

After Van Don - Mong Cai highway opened for traffic in early September, the border city of Mong Cai became a new tourist attraction.

Vietnamese navy ship arrives at Lumut port, beginning Malaysian visit

Sailing Ship 286-Le Quy Don of the Vietnam Naval Academy and a delegation of the Vietnam People’s Navy arrived at Lumut port in the Malaysian state of Perak on October 4, beginning a visit to Malaysia.

Hanoi, CNN boost tourism promotion cooperation

CNN wishes to resume tourism promotion cooperation with Hanoi, thus contributing to introducing the capital city’s cultural identity and valuable traditions to the world, Senior Vice President of CNN Robert Bradley said.

Vietnam's brand value reaches $431 billion

According to the latest report of the world's leading brand valuation consulting company - Brand Finance, Vietnam's national brand value has increased by 11 percent in 2022, from $388 billion to $431 billion.

Unblocking capital sources for the economy

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

Share prices fall, billionaires lose big

Billionaire Tran Dinh Long’s assets have fallen by $1.6 billion this year, while billionaire Pham Nhat Vuong has lost $2 billion.

Video game helps promote Vietnamese culture, tourism

The video game “Lac Viet phieu luu ky” (Lac Viet Adventures) was selected by the Ministry of Foreign Affairs as a promotional product on digital platforms at the Vietnam Days Abroad 2022 in Austria, India, and the Republic of Korea this year.

Over 100 Vietnamese citizens deported from China for illegal stay

106 Vietnamese citizens that stayed illegally in China were returned to Vietnamese authorities at the Ly Van Border Gate in the northern province of Cao Bang on Tuesday.
back_to_top