“Interfering in business by sub-licenses, this means that we will force enterprises to leave Vietnam”

	Resolution 19 of 2018: Emphasize the cutting down of business condition, procedure of specialized inspection
	The Ministry of Industry and Trade committed not to "re-grow" the business conditions after the reduction
	MOIT continues to cut many business conditions

Dr. Nguyen Dinh Cung stated that “the two indicators of Contractual Dispute Resolution and Enterprise Bankruptcy Resolutionwhich were not improved is a pity”.

3 downgrading indexes

Regarding the implementation result of Resolution 19 of 2014 to 2017, Dr. Nguyen Dinh Cung said that the Resolution was issued in 2014. After 4 years of implementation, the DTF point and the rank of most of the indicators have been improved.

3 indicators include Electricity access, Investor protection and Tax payment with the best improvement rate. Notably, Mr. Cung said that 3 indicators including ownership registration and the use of assets; Contractual Dispute Resolution and Enterprise Bankruptcy Resolution were not improved and decreased points and downgraded.

The Contractual Dispute Resolution and Enterprise Bankruptcy Resolution are the two key indicators of the market economy. In a modern market economy, Contractual Dispute Resolution in an effective, reasonable and reliable manner is required. Besides, Enterprise Bankruptcy Resolution is the sanction by the market, thereby, resource will be focused on better places. These two indicators which were not improved is a pity” Mr. Cung said.

For the news contents in Resolution 19-2018, in the beginning of 2018, the improvement of business environment has achieved positive results. Specifically, in the first quarter of 2018, 378 business environments were abolished and simplified.

In the beginning of March 2018, the Ministry of Information and Communications proposed to simplify 11 business conditions in Decree 27/2018 on the management, supply and use of internet services and online-information.

“However, it is a pity that this Ministry abolished 11 business conditions but supplemented 115 other business conditions” Mr. Cung said.

Mr. Cung warned “We talk a lot about the industrial revolution 4.0 and digital economy, but our awareness of economic management is still limited. If we do not change our mindset, the 4.0 or 5.0 is only in paper rather than in practice. If we still interfere in business with sub-licenses, this means that we will force enterprises to leave Vietnam. All what we are doing does not absolutely match with the 4.0 and digital economy. There will be not a favorable environment for digital talent, which is a matter of concern”.

Many Ministers have not yet drastically implemented

Mr. Dau Anh Tuan, Director of Legal Department, Vietnam Chamber of Commerce and Industry said that in the coming time, in order to effectively reduce business conditions, the reduction of business conditions should not be assigned to departments. Because, these Departments had the right to grant the licenses, thus, they would not have any motivation to reduce business conditions. This should be assigned to the Legal department.

“Currently, inspections are still widespread, enterprises still have to receive dozens of inspection teams, causing cost for enterprises. Thereby, the implementation and strict supervision for the implementation in cutting business conditions is very important” Mr. Tuan emphasized.

Following the spirit of previous Resolutions 19, Resolution 19-2018 issued on May 15, 2018, continues to follow-up the assessment criteria on the World Bank's business environment, competitiveness of the World Economic Forum, the innovative capacity of the World Intellectual Property Organization and e-Government of the United Nations.

Accordingly, the Resolution has requested to focus on improving business environment indicators for the additional increase from 8 places to 18 places in the World Bank’s rankings in 2018. By 2020, the quality of Vietnam’s business environment will be equivalent to the average rate of ASEAN 4 countries.

Especially, the Resolution emphasizes the reform of business conditions and specialized management for imported and exported goods. For example, the Resolution requests to abolish and simplify 50% of investment and business conditions, and reduce 50% of the list of imported and exported goods subject to specialized inspection and reduce the rate of import shipments subject to specialized inspection in the Customs clearance stage from 25-27% to 10%, and promote the IT application in handling administrative procedures and implementing online public service.

In order to achieve the objectives set out in Resolution 19-2018, Mr. Truong Hoa Chau, Director of Dong Thap Planning and Investment Department proposed that ministries and sectors need to be more active in improving the business environment and removing difficulties for enterprises. “Only when ministries and sectors actively implement and have specific policies, will it create a basis for localities to apply and implement. Mr. Chau committed.

Resolution 19 of 2018: Emphasize the cutting down of business condition, procedure of specialized inspection VCN – The Government has issued Resolution 19-2018/NQ-CP on continuing implementing tasks and solutions mainly focusing on ...

According to Mr. Nguyen Dinh Cung, “in fact, the improvement of business environment is not uniform. Where ministers implement drastically and closely, the results are positive. However, I really disappointed that some ministers did not grasp the requirements on business environment reform, thus, the lower levels will not change their mind, because the change will affect their interest and no one want to cut their own interest”.

Thus, the leaders need to be more drastic in reforming of business conditions which are managed by them. But if they want to drastically implement, they must deeply understand and grasp problem.