Some ministries add business conditions

The result is unclear

The Ministry of Planning and Investment has just published a report on the implementation of the Government's Resolution No. 19 on the implementation of the major tasks and solutions to improve the business environment and raise the national competitiveness.

In the general assessment of the situation and results of implementation of Resolution No. 19 of ministries, agencies and localities in the third quarter of 2018, the MPI said, as of September 27, 2018, the Ministry of Planning and Investment received the third quarter 2018 report on the situation and results of the implementation of Resolution No. 19 of 16 ministries, agencies and 28 provinces and municipalities. Ministries, agencies and localities have updated their activities, achieved a number of results, but in general, they are still small and not clear.

Some specific results are: the Ministry of Planning and Investment, the Chamber of Commerce and Industry of Vietnam held many seminars, surveys and assessments on business conditions, specialized management. As a result, specific proposals and recommendations for relevant documents were developed by ministries and sectors.

In July 2018, the Ministry of Finance held a symposium on the promotion of the National Single Window, the ASEAN Single Window and trade facilitation, chaired by the Prime Minister.

After the meeting, the Ministry of Finance submitted to the Prime Minister for consideration of the draft Decision on approving the Action Plan to promote the National Single Window, ASEAN Single Window, reform of specialized inspection for import-export goods and trade facilitation in the period 2018 – 2020.

“According to the reports of ministries, agencies and localities, most of the targets have been met, but the review found that many contents were not substantive. In some cases, the report stated that the general action, sometimes only repeating the requirements of the Resolution, the result was unclear, especially reports of some localities,” the MPI stated.

In addition, until September 27, 2018, the Ministry of Planning and Investment has not received reports from some ministries (such as the Ministry of Health, Science and Technology, Labor, Invalids and Social Affairs) and 35 localities.

Some ministries add business conditions

Regarding the reform of business conditions, the MPI said that in the third quarter 2018, ministries and sectors have urgently reviewed and proposed to abolish and modify business conditions. According to the assessment, most of the draft decree on the reduction and modification of business conditions is on time (before August 15, 2018).

So far, there have been two decrees abolishing and amending business conditions, including the Decree No. 08/2018/ND-CP on amending some decrees related to business conditions under State management of the Ministry of Industry and Trade and Decree No. 100/2018/ND-CP on amending, supplementing and abolishing a number of regulations on business investment conditions in the fields of State management of the Ministry of Construction, with 858 business conditions being cut and simplified. The reduction of business conditions is only 30% of the requirements, the Ministry of Planning and Investment’s report showed.

According to the MPI, ministries such as the Ministry of Natural Resources and Environment, the Ministry of Finance and the State Bank are actively implementing this task, with a substantial reduction.

A small number of ministries such as the Ministry of Information and Communications, the Ministry of Labor, Invalids and Social Affairs carried out with a slower progress. “The Ministry of Public Security does not propose a draft decree amending and supplementing the decrees on business conditions, but recommending to amend each document separately. However, the time limit is for implementation in 2019, not in 2018. The Ministry of Transport does not propose to develop a document which is amending many other documents, it proposed to amend 9 related Decrees,” the MPI said.

As reported by ministries, almost all of them have reached or exceeded the target of cutting 50% of business conditions. However, the content of reduction and the effect of cutting down business conditions is a matter for further discussion.

According to the MPI’s assessment, there are still unsuitable and unnecessary business conditions, which have not been reduced.

For example, regulations on training and granting certification by state management agencies are still quite common. The business conditions hidden under the “comply with the regulations of the Ministry” have not been removed. Particularly, some change of content is a formality, rather than reform or businesses. Therefore, the spirit of “cutting down” has not been demonstrated.

The Ministry of Planning and Investment, according to reports and modification plan of ministries, they have reached or exceeded the target of 50% reduction in business conditions, but many business conditions which are included in the Laws and the amended plan are unclear. Therefore, even if the decrees, modifications of business conditions will be approved in 2018, it certainly won’t achieve the target of 50% reduction.

Notably, the MPI said: "A preliminary review shows that the Draft Decrees amending many of the Decrees on Business Conditions do not add new business conditions, but with the revised Draft Decrees each new decree adds new business conditions, such as the draft decree drafted by the Ministry of Transport."