A task force to support the business community needs to be established

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Removement of trade barriers will boost business operations. Photo: Hoai Anh.

Not really open for enterprises

Regarding the achievements in efforts to improve the business environment, Mr. Nguyen Dinh Cung said that the Government working towards integrity and drastic action for benefits of people and the business community gained the trusts of the business community after the meeting with enterprises in early 2016. Noting innovations of the business environment in the spirit of serving businesses, Mr. Cung stressed it was extremely meaningful that the Government tried its best to protect the right of the business community in accordance with the Law on Constitution, the Law on Investment and the Law on business. Typically, the Government handled the violation of Hello coffee shop in Ho Chi Minh City. "In addition, the reform of business conditions has been implemented with thousands of business conditions being eliminated such as regulations on formaldehyde testing, energy labeling, gas trading conditions, Circular 20 and conditions for rice exports, reducing costs and bringing trust to the business community", Dr. Nguyen Dinh Cung said.

For enterprises, Mr. Cung said that business associations in the field of shoes, textiles and seafood were more active and persistent in proposing issues to senior competent authorities. Accordingly, many reflections of these enterprises have been noted and handled.

Although there have been some changes in the improvement of the business environment, many experts said that these changes mainly came the pressure of enterprises, the Government and public mass media. In fact, many civil servants in State agencies are still passive and lack innovation and creativeness. Thus, there have been many barriers for the business community to develop.

From the business point of view, Mr. Nguyen Van Tinh, the Director General of Vietnam Infrastructure Development and Finance Investment Joint Stock Company (VIDIFI, JSC) said that after the Prime Minister's instructions, Ministries and local authorities immediately solved problems for businesses. However, he also stated that in fact, the Government was very fierce, but civil servants were not active under the drastic direction of the Government. As an enterprise operating in many localities, VIDIFI, JSC needs a good investment environment in the local area, which mainly focuses on the process of solving the problems of enterprises, not just investment promotion.

Regarding the difficulties of businesses, Mr. Nguyen Van Tinh said, in the process of investment projects, many enterprises had to implement land clearance in some regions. However, despite the direction of Ministries, many localities did not pay costs from land clearance for enterprises, while businesses have to borrow money with an interest of 10%. "No localities conducted payments for these enterprises. I think that if the Government issues legal mechanisms or regulations, the localities must be responsible for the damage to enterprises, "the representative of VIDIFI said.

Need to blame irresponsible civil servants

In this regard, Mr. Dao Huy Giam, the Secretary General of the Business Forum said that in the implementation of Resolution 19, there were many inadequacies. Some Ministries, sectors and localities have issued new policies and regulations, causing difficulties for enterprises. Accordingly, Resolution 19 did not create favourable conditions for enterprises to develop. Regarding Hai Phong's collection of infrastructure charges at the Hai Phong seaport, the Business Forum has recently collaborated with 6 business associations to propose to the Government to suspend the implementation of Resolution 148 in Hai Phong province.

Many business associations said that the distance from Hai Phong to the expressway or Highway 5 was only about 20km with a fee of 500,000 vnd per 40-feet container, equivalent to 50% of Hanoi-Hai Phong highway fee while the distance was equal to one fifth of Hanoi-Hai Phong highway. In addition, according to representatives of business associations, not only do import-export enterprises use the highway but domestic enterprises also use the highway, so it is unreasonable when only import-export enterprises are subject to these charges. The import and export enterprises do not guarantee the principle of fairness mentioned in Article 8 of the Law on Charges and Fees. According to statistics from JETRO (Japan), a container from Hanoi to Hai Phong seaport to export to Japan has to attract a cost of $US 990 compared to a cost of $US 170 from Quang Chau and $US 550 from Manila.

In general, representatives of business associations emphasized that the solutions of many Ministries did not create trust for the business community, not in line with the Direction of the Government. Thus, the promotion of the economy to attract investment and create economic power for Vietnam will be still a difficult problem under Resolution 19.

Regarding this issue, Mr. Nguyen Van Tinh said that localities should set up a task force to note and resolve problems of enterprises. In addition, irresponsible civil servants should be handled and blamed under the Law to remove difficulties of businesses and improve the business environment.

Consultation on the draft Circular revising Circular 38 VCN- On 10th March 2017, the General Department of Vietnam Customs organized a seminar to consult the ...

On the threshold of the Prime Minister's meeting with enterprises in 2017, Mr. Nguyen Dinh Cung suggested that relevant authorities should revise the recommendations of enterprises in the past time. Specifically, we need to propose to the Government to set up a task force to monitor, analyze and remove difficulties of enterprises in a timely fashion in line with the Direction of the Government and the Prime Minister. After the meeting, the Government should not only issue the resolution, but it should also establish a task force to solve problems of enterprises on the basis of enterprises’ recommendations.