VietNamNet Bridge – The complicated administrative procedures, the harassments by the local officials to businesses’ operation and the under-the-table fees have been cited as the biggest barriers leading to the grade falls in the provincial competitiveness index (PCI).

Receiving inspectors – the main job of businessmen

In 2012, the northern province of Bac Ninh for the first time fell grades in the PCI to the 10th among the 63 provinces and cities nationwide.

The PCI decline was attributed to the declines in the component indicators, including the legal institution indicator which decreased by 3.32 points, the time cost by 1.41 points, the land access 1.24, the business service 0.63 and the underground expenses 0.06 points.

In Quang Nam province, 55 percent of the local businesses met difficulties when following the administrative procedures relating to the land access, while 27 percent found it difficult to expand the business premises.

Despite the great efforts by the local authorities to increase the transparency and reduce the embezzlement, the “underground fee” still has been cited as a big hindrance to the businesses’ operation.

The 2012 PCI report of the Vietnam Chamber of Commerce and Industry noted a sharp decline of the “petty corruption,” from 70 percent of unofficial expenses in 2006 to 50 percent in 2012. However, the other expenses have increased. For example, the commissions to be paid to the state officials to obtain contracts have increased from 23 percent in 2011 to 41 percent in 2012.

Up to 42 percent of polled businesses said they had to pay commissions to relevant officials to be sure that they can sign business contracts with state agencies.

Businesses also complained that they cannot keep their mind on their works, because they have to spend time to receive inspectors all year round.

In Binh Phuoc province, some businesses reported that they had received 13 groups of inspectors just within one year. Hoang Manh Binh, Chair of the Binh Phuoc provincial Small and Medium Enterprises’ Association, said a local company has to receive 17 groups of inspectors from different agencies, committees at different levels who come to work out on only one issue.

Especially, the inspection which began in June 2011 had not finished by the end of May 2013.

The director of a business in Binh Phuoc said he could not any good sleep over the last two years because he regularly has to receive the groups of inspectors. Meanwhile, Vu Manh Hung, Chair of the local Young Entrepreneurs’ Association noted that the local authorities and state agencies at different levels, from provincial to districts’ and communal ones, have the right to inspect businesses, thus causing inconvenience to businesses’ activities.

Local authorities vow to stop the problems

Responding to the PCI, the leaders of many provinces have threatened to remove high ranking officials from their posts for the complaints by businesses.

Nguyen Luong Thanh, Deputy Chair of the Bac Ninh provincial People’s Committee, said the province has vowed to heavily discipline the officials who harass businesses.

In order to deal with the underground fee, Bac Ninh has been trying to make public all the policies and the public service fees. In principle, businesses don’t have to pay any extra fees except the ones stipulated in the legal documents issued by the provincial authorities.

Businesses have been also promised that only one inspection tour would be taken per year, except the extraordinary inspection in case signs of the law violations are found.

The leaders of the local departments which have the component indicators decreasing, thus leading to the decreases in the provinces’ PCI would be harshly disciplined if they cannot show convincing reasons.

Duy Anh