Cutting business conditions in the MOIT: What to do to avoid the re-issue?

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Petroleum is one of the field governed strongly in this reduction of the MOIT. Photo: Hong Van

Change step by step

At the seminar on "Cutting down business conditions in the MOIT and facilitating enterprises" held by the Government Portal on the morning of 22 November 2017, Deputy Minister of Industry and Trade Tran Quoc Khanh said that in order to cut 675 conditions cut as announced in late September, the MOIT has worked very seriously. Decision 3610a / QD-BCT governs about 16 sectors, in which many sectors are concerned such as petroleum, liquefied gas, chemicals, alcohol, logistics, etc. The conditions announced to be cut are definitely removed.

According to Decision 3610a, in this cut, the petroleum sector, the conditions for petroleum traders and importers are amended clearly. Specifically, the condition of that petroleum enterprises have to own and co-own the minimum contributed capital of 51% of domestic means of transport of petroleum has been removed. Commenting on this amendment, Deputy Minister Tran Quoc Khanh said that: Petroleum was an important input for many industries. In order to ensure the supply, over the past few decades, the petroleum import and distribution system had been strictly maintained. However, the society was increasingly developed, if there were more companies involved in the petroleum market to gradually increase the competitiveness, the petroleum price could be improved. "When cutting and streamlining the business conditions in the petroleum sector, the MOIT has balanced the state management and competitiveness. However, petroleum is a very important commodity. Any changes cannot be implemented fast but step by step, "Khanh said.

Apart from petroleum, electricity is a sector with big change after the MOIT’s decision on cutting down investment and business conditions. According to Deputy Minister Khanh, for a long time, Vietnam Electricity Corporation (EVN) was the exclusive unit in the field of electricity production, transmission and distribution. However, recently, other economic sectors had joined in the electricity production. EVN mainly monopolizes the distribution. The purpose of the cut is to facilitate, attract more and more different economic sectors to participate in the electricity market. Specifically, the MOIT expects to increase the number of enterprises involved in certain segments such as production, transmission, and distribution in the coming time.

Focusing on post-check instead of pre-check

In fact, in the story of cutting down investment and business conditions of the MOIT, many businesses expressed their concerns about the re-issue of the cut conditions. Regarding this, Deputy Minister Khanh said that the cut of investment and business conditions was carried out by the MOIT from the July 2016 when the new government began its term and had become an overall thinking of the Ministry. In addition, the cut of the MOIT also strictly abided by five principles, in which the third principle was that investment and business conditions have to meet the criteria prescribed in Article 7 of the Investment Law of 2014. From the above factors, the situation of re-issue of cut conditions is very difficult.

Concerning the issue of how to avoid the re-issue of investment and business conditions that have been cut, Director of the Central Institute for Economic Management Nguyen Dinh Cung said that the most important is to change the management thinking and method, focusing on post-check instead of pre-check. Normally, when a new business activity arises, there is a demand for management. With the management thinking of pre-check, management agencies always think of business conditions. Although it is not easy, change the management thinking and method is the prerequisite to prevent the re-issue of the cut conditions.

Agreeing with this viewpoint, Deputy Minister Tran Quoc Khanh said that after cutting the 675 conditions, the MOIT would transfer from pre-check to post-check through the development of a series of standards in order to give maximum benefits to enterprises. Typically, in the food sector, previously, in order to be licensed for business, enterprises had to meet a series of conditions such as location and hygiene., etc.

In addition, enterprises had to invite the delegation to check and grant a certificate of food safety, so that enterprises could start their business. However, currently, general conditions have been eliminated, while other conditions have shifted to the post-check. The Ministry will set out the standards for a food business establishment. During the check at random, if the establishment fails to meet the standards, it will be given time to overcome or obliged to suspend its business depend on the level of the satisfaction.

"Thus, enterprises can start the business regardless of proving their eligibility to any agency and the enterprises will have to be self-responsible. The thinking of transferring from pre-check to post-check is to give the right of self-determination to enterprises and people so that if they feel to be eligible, they will not be afraid of starting a business. However, the role of localities is very important in the change of thinking. Previously, the local authorities were always reassured, because enterprises were licensed by the MOIT.

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Now, the MOIT is no longer in charge of issuing a certificate of business, but the local authority must be responsible for controlling the eligibility of enterprises. Of course, the central ministries and authorities will accompany the local authorities. In the process of reducing business conditions, it is important to pay attention to the enforcement capacity of the authorities at all levels, " Mr. Khanh said.