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Official Gazette

Thursday, November 21, 2019

Government continues cutting costs for businesses

Updated: 08:11’ - 29/12/2018
By 2020, enterprise inspection and examination plans and handling results will be publicized on websites or portals of inspecting agencies.

Government Resolution 139/NQ-CP dated November 7, on the program of action to reduce costs for enterprises, aims to thoroughly eliminate unreasonable charges prescribed by business regulations, prevent and reduce acts giving rise to informal costs payable by enterprises,  create a low-cost and stable business environment, and promote investment, market entry and fair competition.

An electronic device manufacturing line of Bluecom Vina, a RoK-invested company, in Trang Due industrial park, Hai Phong__Photo: Danh Lam/VNA

The resolution also sets forth other goals, including slashing or simplifying business conditions, strictly controlling the issuance of new regulations on investment and business conditions, and minimizing unreasonable and unnecessary business conditions.

By 2020, regulations on investment, land, construction, taxation and social insurance will be reduced and simplified to achieve the average score of ASEAN 4 according to the World Bank’s Doing Business Index.

Also by that time, the percentage of enterprises saying that their peers have to pay informal costs under the PCI Survey will be halved; and tax and social insurance costs of enterprises according to the Business Environment Index will be lowered to the average level of ASEAN 4.

To reach the above targets, the Government assigns specific tasks to ministries, sectors and localities.

Regarding the cost of compliance with market entry regulations, cabinet agencies and local administrations are asked to slash or simplify half of investment and business conditions as stated in Government Resolution 01 of 2018, ensuring compliance with Article 7 of the 2014 Investment Law; and revise technical regulations toward no longer regulating business condition-related matters.

The Ministry of Planning and Investment will have to coordinate with related ministries and sectors in revising the Investment Law toward further clarifying the term “business conditions” for use as a basis for monitoring regulations on conditional business lines, ensuring clear distinction between business conditions and technical standards and regulations.

The Ministry of Justice is requested to intensify the substantive examination of draft legal documents on business conditions to ensure that new regulations are consistent with the 2014 Investment Law without imposing unnecessary requirements.

Regarding production and business input costs, the Government requires the State Bank of Vietnam to build a legal framework for commercial banks to develop new products to meet the demands of enterprises, i.e. bank payment obligation (BPO) and value chain finance.

The central bank is also tasked to devise effective solutions to further facilitate Vietnamese enterprises’ access to investment and business support funds from international financial institutions under the market principles.

The banking watchdog will also have to take responsibility for implementing synchronously and flexibly monetary policies to stabilize the monetary market and contribute to curbing inflation while facilitating credit institutions’ cutting of loan interest rates when conditions permit so as to help businesses reduce input costs.

Regarding informal costs, the Government requests prompt rectification and strict handling of units and persons that harass and create burdens for enterprises and issuance of documents guiding the compliance with business regulations, ensuring that business regulations are easy to understand and follow, and unambiguous.

The Government Inspectorate is tasked to create a special mechanism of protection and assistance for enterprises to report violations during  the settlement of enterprise-related matters  and within two years after such reports are made in order to prevent unjustice or discrimination against enterprises.

The Vietnam Chamber of Commerce and Industry and business associations will have to appoint their officers to join inspection teams as witnesses at the request of inspection agencies, mobilize its member enterprises to report negative practices of officials and civil servants and their gather petitions and complaints to be submitted to the Government Inspectorate.- (VLLF)
 

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