Institutional reform to revive the economy

VCN - Recent positive index of business results and information via business surveys have revealed the bounce back of business confidence. However, in order to cope with current uncertainties, institutional reform is always considered a prerequisite, sustainable and long-term solution for economic recovery.
High hopes put on economic institutional reforms in 2020 High hopes put on economic institutional reforms in 2020
Vietnam continues institutional reform as part of EVFTA commitment Vietnam continues institutional reform as part of EVFTA commitment
Breakthrough in institutional reform creates an impetus for economic development Breakthrough in institutional reform creates an impetus for economic development
Business confidence has recovered more strongly in the last months of the year. Photo: H.Diu
Business confidence has recovered more strongly in the last months of the year. Photo: H.Diu

Many backwards have been pointed out

Despite positive achievements of all fields recorded in recent reports on the socio-economic situation of the Government, many limitations and shortcomings, including institutional limitations, have been clearly identified.

The explanatory report to the National Assembly recently presented by Prime Minister Pham Minh Chinh stated clearly many outstanding drawbacks such as outdated and inappropriate legal regulations, mechanisms without timely correction and supplementation, complicated and cumbersome administrative procedures for production, business and enterprise activities. Administrative processes and procedures within each agency and between agencies sometimes do not meet the requirements. Decentralization and decentralization of power in some areas still have institutional problems, especially with newly arising issues.

A number of legal regulations, mechanisms and policies that have not been promptly amended and supplemented to meet practical requirements and in along with the socio- economic changes. Moreover, the process of promulgation, amendment and supplementation still goes through many stages and levels. Discipline and administrative discipline in some agencies, units and localities are still not strict, in which the leaders at times and places have not really promoted their sense of responsibility. Remarkably, a part of officials and civil servants avoid and push responsibility, are afraid of making mistakes, and are not really for the common good...

According to opinions from many experts and businesses, although the National Assembly has been continuing to implement law-making programs with the amendment and supplementation of many legal regulations in a more favorable, more economical and in accordance with international practices, there are still many overlapping and conflicting in land, environmental, and construction issues, hindering business operations. Experts say that the amendments do not seem to be enough, so it is necessary to continue reviewing and amending institutions to avoid overlaps and conflicts.

Review to "refresh" the institution

Clearly, in the current difficult context for businesses, institutional reform becomes urgently crucial even more than short-term fiscal and monetary policy. Because institutional reform not only aims to reduce and simplify administrative procedures but also aims to cut compliance costs arising from legal regulations for businesses.

Therefore, in the 6th Session of the 15th National Assembly, when discussing the assessment of the socio-economic situation in 2023 and the mid-term 2021-2025, many National Assembly delegates have emphasized the role and importance of institutional reform and improvement.

Commenting on factors affecting sustainable growth, National Assembly delegate Le Thanh Van (Ca Mau delegation) emphasized the need to consider institutional reform as a resource. Delegates even proposed the early establishment of the Central Steering Committee on institutional reform and considered this an important breakthrough. In terms of institutions, delegate Le Thanh Van proposed paying special attention to three groups of economic institutions, which are the establishment and equality in the distribution of social resources; the protection of contract regime and assets; the harmonization the State and the market relationship.

"The fact that sectors and localities are asking for specific mechanisms shows limitations of mechanisms, so it is necessary to synchronously review them to sew new shirts appropriately, instead of patching and changing each button," said the National Assembly representative Le Thanh Van.

Similarly, National Assembly delegate Vu Tien Loc (Hanoi delegation) also said that institutions play decisive role in economy development rather than financial resources. "Good institutions free up resources and help money make money, but bad institutions mean even if we have money, we cannot spend it," the delegate stated.

Therefore, Mr. Vu Tien Loc stated that the key is to focus promoting institutional reform, overcoming overlapping, inadequate and especially lack of transparency legal regulations, which bears risks to implementers. At the same time, the fear of injustice, fear of wrongdoing, fear of inspection and examination must be eliminated from officials, civil servants and businesses. “We also need to immediately add appropriate economic sanctions to handle violations and not criminalize economic relationships. At the same time, we must practically and conscientiously deploy measures to protect officials and entrepreneurs who dare to think and act for the common good," Mr. Vu Tien Loc expressed.

During the Prime Minister's question session on November 8, National Assembly delegates also raised questions about the priorities of institutional reform for breakthrough developments in the coming time. Responding to this content, according to Prime Minister Pham Minh Chinh, the Party and State have identified 3 strategic breakthroughs: institutions, infrastructure, and human resources. According to the Prime Minister, the selection of priorities needs to be harmonious, reasonable, and appropriate for each development stage according to the Party's policies.

By Chi Mai/ Thu Phuong

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