Nguyen Minh Thao from the Central Institute of Economic Management (CIEM) said under the 2014 Investment Law, there were 267 conditional business fields, while the number dropped to 227 in the 2020 Investment Law version.

However, in many cases, the reduction is the result of the combination of two or more business fields, or the use of other names which cover a broader range of business fields.

In the agriculture sector, for example, there were two separate fields, trading in aquatic feed and trading in livestock feed.  But later, the fields were combined to form one field of trading in aquatic and livestock feed.

The same was implemented with the field of trading plant varieties and animal breeds, and providing the service of examining aquatic and animal feed.

In the two sectors of agriculture and construction alone, the number of conditional business fields is three times higher than that shown in the 2020 Investment Law.

“The figures show that business environment reform has been carried out as a formality only,” Thao said.

Meanwhile, business conditions are still abundant in circulars and legal documents promulgated by ministries and branches, while procedures related to land remain very complicated and contradictory regulations exist in legal documents.

The business environment therefore is still full of barriers which restrict people’s business freedom.

Fred McMahon from Fraser Institute (Canada) said that business freedom plays a very important role in promoting economic growth in all countries, including Vietnam. Business freedom is associated with a healthier society, a cleaner environment, higher GDP per capita, human development, democracy and hunger elimination and poverty reduction.

Because of the barriers in the business environment, Vietnam is given low rankings in economic freedom. Since 2000, Vietnam’s economic freedom index in Fraser’s rankings has been below the 100th position.

In 2000, Vietnam had a 5.58 out of 10 score, ranking 105th. In 2010, it got a 5.9 score, ranking 128th. In 2015, it had a 6.04 score, ranking 126th. In 2022, it got a 6.42 score and ranked 113th out of 165 economies.

In the Heritage Foundation’s rankings, in 2022 Vietnam ranked 84th out of 160 countries. Of countries in Southeast Asia, Vietnam only ranked above Laos (151st) and Cambodia (106th).

In the countries with highest levels of economic freedom, only 2 percent of population live in extreme poverty ($1.9 per day), while the figure is 31 percent in countries with the lowest level of freedom.

According to the expert, in order to maintain high GDP growth rates, Vietnam needs to focus on economic and market reforms. Promoting business freedom will help accelerate economic growth.

Duy Anh