Deputy Prime Minister Vuong Dinh Hue: Reform and trade facilitation – the “keys” to enhance competitiveness and integration of our country (*)

On the threshold of the new spring 2017 Dinh Dau, Mr. Vuong Dinh Hue – the Politburo member, the Deputy Prime Minister, the Head of the National Steering Committee for the ASEAN Single Window, the National Single Window and trade facilitation, spent time to answer the interview of Customs News about the above central tasks.

Deputy Prime Minister, could you assess the role of the administrative procedure reform and trade facilitation while the country considers integrating further deeply?

With the goal of building tectonics, development, integrity, action, and service Government for the people and businesses, the Government promulgated mechanisms and policies to create a healthy business environment; limited and progressed to eradicate the “asking and giving” mechanisms, eliminate the direct interference of the State administrative agencies in the production and business activities of enterprises, through simplification and publicity, transparency of all administrative procedures, creating the most favorable environment for the people and enterprises to approach all administrative procedures, having mechanisms for monitoring their implementation; removing bottlenecks; and promoting start – ups and innovation.

The administrative procedures affected citizens and businesses directly in the business process, complicated, non-transparent, unreasonable procedures will be a barrier and burden for businesses, the germ for developing corruption, negation, and reducing the competitiveness of the business investment environment. Therefore, the Government identified that the reform of administrative procedures was one of the key solutions, the breakthrough to improve the business environment, and enhance national competitiveness.

In recent years, the Government has directed the ministries, branches and localities to implement reform of administrative procedures, simplify administrative procedures and achieved positive results. According to the Survey Report on the Global Business Environment - Doing Business in 2017 announced by the World Bank (WB), Vietnam ranked 82 of 190 evaluated countries (up 9 grades from 2015).

However, the reform of administrative procedures in some industries has faced difficulties to implement such as: land, agriculture, health, industry and trade. Publicity and transparency of administrative procedures in some areas have not been timely.

Vietnam has integrated into the international economy deeply on several levels, under the principles and standards of the global market; has had diplomatic relationships with 185 countries, economic relationships with 224 countries and territories, has establish strategic partnerships with 15 countries, and a comprehensive partnership with 10 countries. So far, 64 countries have recognized the market economy of Vietnam, including large trade partners of Vietnam. Vietnam has signed 12 regional free trade agreements and bilateral FTAs, and is negotiating 4 new generation FTAs. Participation in the negotiation and signing of the FTAs has had a positive impact on economic development, but many challenges from external and internal economies also intertwined, especially Vietnam has participated in some of the value chains having an important role on the global economy including: a value chain of food and food security; a value chain of energy and energy security (oil, gas, coal); and a value chain of textiles and footwear.

Therefore, devising practical solutions to improve national competitiveness are very essential in order to take advantage of the opportunities and benefits of international integration commitments effectively, and contribute to building the independent, self-control, fast growing and sustainable economy. At the same time, focusing on improving the business environment, enhancing national competitiveness are key solutions to develop the economy and realize the opportunities of international integration; to create motivation to develop dramatically all kinds of businesses in the direction of dynamics, innovation, and creation, successful implementation of three strategic breakthroughs in the process of renewing the growth model and restructure the the overall economy.

Thus, reform of administrative procedures, improvement of the investment and business environment, and facilitation of trade activities are key to enhance the competitiveness and international integration of the country in the current situation.

In the next time, the reform of administrative procedures should: focus on implementing the reform of administrative procedures in accordance with the Government Resolutions; continue to review and abolish the cumbersome administrative procedure causing inconvenience to people and businesses. Launching processes publically and transparently, facilitate for people and businesses. Improving the quality and the efficiency of administrative procedure resolution, improving the satisfaction level of the people and organizations for the services of state administrative agencies. Eliminate resolutely negative situations, harassment and take satisfaction of the people, and businesses as a measure of the quality and effectiveness of public service provision.

Deputy Prime Minister, in order to facilitate business operations, commercial exchanges, attract the foreign investment, promote the economic development and the international integration, what are breakthrough solutions?

To achieve these objectives, one of the most important solutions is to strengthen institutional reform and institutional enforcement to facilitate business activity and competition, improve the multi-sectoral and multidisciplinary coordination mechanisms between the Central and local; promote judicial reform, public administration reform, enhance transparency and prevention of corruption. Solving synchronously the enactment and enforcement of legislation on the business investment.

Last time, the Government attached great importance to continuing to perfect the institution to improve the investment and business environment, enhance national competitiveness while the economy integrates further deeply into the international and regional economies. Accordingly, the Government has submitted to the National Assembly for consideration and promulgation of a new law amending and adjusting the provisions of various relevant laws; focused on reviewing and continuing to promote the reform of administrative procedures in various areas, focused on procedures to facilitate for enterprises to enter the market, simplified or reduced many rules on the non-appropriate business conditions, import-export procedures, and immigration procedures.

This problem has been confirmed several times in Government documents and recently, Resolution No. 19/2016/NQ-CP on the key tasks and measures to continue to improve the business and environment, enhance national competition in two years 2016-2017, orienting by 2020.

The Deputy Prime Minister Vuong Dinh Hue – the Chairman, chaired the first meeting of the National Steering Committee for the ASEAN Single Window(ASW), the National Single Window (NSW) and trade facilitation, on December 8th, 2016 at headquarters of the General Department of Customs. Photo: Huu Linh.

The implementation of administrative procedure reform measures and activities in the field of import-export, and immigration is to realize the international commitments and treaties which the Vietnamese Government has signed, and acceded. On the other hand, these activities also start from the intrinsic needs of the economy in particular and the country in general to take advantage of the opportunities and address the challenges that general integration gives the community; securing the position of the country in integration.

In front of requirements of administrative procedure reform to address current problems as well as to meet the integration process through the creation of the common market, the free trade areas, the bilateral and multilateral treaties related to the trade and the transport in the near future, Vietnam should have national steering and administration mechanisms to reform administrative procedures in the field of import-export, and immigration in order to ensure State administrative agencies act consistently, and simultaneously under the uniform orientation. Therefore, on October 4th, 2016, the Prime Minister signed Decision No. 1899/QD-TTg on establishing the National Steering Committee on the ASEAN Single Window, the National Single Window, and trade facilitation.

As the steering committee Head of the National Steering Committee for the ASEAN Single Window, the National Single Window, and trade facilitation, Could you talk about the critical goals, mission which the Committee as well as the Deputy Prime Minister will give priority to direct the ministries, branches and localities to implement in the future, please?

The National Steering Committee for the ASEAN Single Window, the National Single Window, and trade facilitation will direct the ministries, branches focus on implementing the objectives: All administrative procedures related to the State management of export and import goods and transit goods; people and transport of immigration, transit done through the National Single window mechanism in the form of online public services level 4.

We must give priority to focus on implementing under the commitments and the roadmap, specifically to 2018, we must implement the procedures for means and goods transporting in and out seaports, inland waterway ports, offshore oil ports on a national scale; procedures for means of transport in and out of airports through the National Single Window. Deploy the administrative procedures with the large number of transactions, significant impact on the operation of businesses, organizations and people at least 80% of the administrative procedures of ministries and branches relating to export and import goods; immigration, transit for people and vehicles.

Dear Deputy Prime Minister, one of the biggest barriers for import and export operations is the specialized inspection problem. Next time, how will the Steering Committee direct to remove the “bottlenecks”?

In order to build and perfect the mechanisms, the policies and the State management measures, the procedures and the regulations to improve the effectiveness and implement specialized inspection activities effectively for export - import goods, to shorten the clearance time, reduce costs for business and society, in line with international practices, create favorable conditions to encourage export of Vietnam goods, create technical barriers for imported goods, protect the domestic production reasonably, protect the environment, rights and public health; contribute to protect the economic security, improve the competitiveness of products, goods, of enterprises and the country, the Prime Minister issued Decision No. 2026/QD-TTg dated on November 17th, 2015 approving the Project on solutions to improve efficiency of the specialized inspection for export and import goods, in which, 73 lists of specialized inspection groups in the management fields of the State, ministries, and branches need to be amended and supplemented.

Dated November 14th, 2016, the Prime Minister issued Decision No. 2185/QD-TTg approving the Master Plan for implementing the National Single Window and the ASEAN Single Window in 2016-2020, which set out the specific goals, such as: by 2020, we will implement all administrative procedures of ministries and the branches in the management of export, import and transit goods; immigration and transit people and vehicles through the National Single Window; clearance time and releasing time for goods, people, and means relating to the single window administrative procedures will be the same as the group of four countries in the ASEAN region; 100% of administrative procedures implemented through the National Single Window will collect fees by electronic methods. The electronic documents (electronic licenses, electronic certificates and other electronic equivalent papers) issued through national OSS will be used when performing other related administrative procedures. Implementing mutual exchange and recognition of trade documents issued in electronic form with ASEAN countries and the exchange, processing for trade documents with other countries and blocks – the economic communities under the international agreements and commitments which Vietnam takes part in.

The mission of the National Steering Committee for the ASEAN Single Window, the National Single Window, and trtade facilitation is that they have to give solutions, roadmaps, specific steps to implement the above tasks of the Prime Minister to remove above “bottlenecks’.

Last time, Customs has made many attempts in the modernization work, facilitation for the business community, how do you assess about the reform of Customs? To contribute to implement the policy on building the active, tectonic, service Government for the business community, in your opinion, which breakthrough stages should Customs focus on implementing in the future?

Last time, Customs has made many attempts in administrative procedure reform, Customs modernization, and facilitation for the business community and has received the high appreciation of the Government, ministries, branches and the business community, such as: Performing the automated customs clearance system VNACCS/VCIS; In implementation of the concentrated specialized inspection for the export and import goods at the border; and accelerating the application of technical equipment in the management and supervision. In recent years, Customs has chaired to deploy contents related to implementing the National Single Window with positive initial results, contributing to the realization of the Government's commitment on facilitating trade activities and implement the ASEAN Single Window.

Next time, in addition to implement the goals of Customs reform and modernization under the Customs Development Strategy until 2020, as the Standing Agency of the National Steering Committee for the ASEAN Single Window, the National Single Window, and trade facilitation, the General Department of Customs should take the lead and coordinate with Ministries, and Branches for building the ASEAN Single Window and the National Single Window mechanism; propose and implement standby measures, backup, security, safety, and other related contents for the operation, maintenance and upgrading of information technology systems in sync, agree with requirements to deploy the ASEAN Single Window, the National Single Window; build a national database about forms and electronic documents in the administrative and commercial field to apply equally to all administrative procedures implemented through the National Single Window.

Thank you your excellency, Deputy Prime Minister!

(*) Headline named by the Customs News.