Waiting for support policies to reduce costs for businesses

VCN- Government affirmed to continue reducing costs for businesses in 2018. Therefore, in order for these commitments to come into effect, enterprises expect the actions of the management agencies are concrete and in essence, to meet their requirements and desires on cost reduction.
waiting for support policies to reduce costs for businesses
Enterprises face many difficulties due to high costs, even including many unofficial expenses. Photo: Hong Nu.

The burden of unofficial expense

Recently, Mr. Pham Dinh Doan - Vice Chairman of the Central Council of Vietnam Business Association, Member of Executive Board of Vietnam Chamber of Commerce and Industry (VCCI) has stated that the administrative procedure reform and cost reduction for businesses were having a great impact on them. In fact, if enterprises do good business, their profit is only 2-4% per year, while according to the VCCI survey, the informal cost of enterprises is up to 6-8%. This is a big difficulty for enterprises, especially small and medium ones.

A new study released by the Central Institute for Economic Management (CIEM) showed that businesses are suffering a lot of unreasonable costs as soon as they enter the market: from start-up costs; expenses of production and business establishments; capital expenditures; costs of science and technology; cost of compliance with safety and quality standards to the cost of compliance with regulations on fire prevention; cost of the procedures for tax payment and refund ... In addition, companies also faced many inspections, high land costs ... and also unofficial costs. According to enterprises and experts, the unofficial fees are quite common and exist in both large and small enterprises.

One business shared that they often face difficulties due to the burden of land rent, which increased 4-5 times in some localities, creating difficulties for businesses in expanding their business. Therefore, economist Dr. Dang Hung Vo said that large enterprises only have more money, but no easier access to land. Many people having land but do not pay land use fees, so they cannot make use of it. Meanwhile, enterprises need to use land to do their business to gain profit, and then the land fee can be paid.

Efforts to cut

From the beginning of February, 2018, Prime Minister Nguyen Xuan Phuc said that 2017 was chosen as the year of "cost reduction for businesses". In 2018 the Government will continue to focus on reducing costs for businesses, therefore the impact on the business community will be clearer and the results of the tasks and solutions implementation in 2017 will be more effective. Therefore, the Government continues to set out the tasks such as: reforming administrative procedures related to land, tax, customs, agriculture, rural areas; applying information technology, doing start-ups, reducing procedures and operating costs for people and businesses; fundamentally improving and creating strong changes in criteria of business environment and competitiveness of the economy; regularly organizing dialogue with enterprises, and timely handling their feedback and recommendations...

Thus, over time, many ministries and branches have made positive results in cutting down costs, by simplifying many administrative procedures and business conditions. A typical example is the Ministry of Finance with solutions of applying information technology to shorten time as well as implementation costs for both management agencies and enterprises. According to the General Department of Taxation, at present it has supported businesses in successfully implementing electronic invoices, so far nearly 3,000 companies have used this form. The use of electronic invoices has contributed to reduce the time and expense of invoices for businesses, to limit fraud and to reduce the time to process administrative invoices as well.

However, to get more substantive results, businesses have recommended that ministries and industries need to understand in depth the desire of enterprises to make reasonable plans. Mr. Chu Dinh Long - Director of Cat Loi Trading & Service Co., Ltd (Hanoi) - suggested ministries, sectors and localities to actively study and propose the Government specific mechanisms and policies of financial and land support for businesses; because officials and authorities often take advantage of unclear and general regulations to make it difficult for businesses. According to Mr. Nguyen Van Quang - Director of Garment 9 Joint Stock Company (Nam Dinh), the ministries should consider adjusting the salary and insurance mechanism to match the current labor price; helping the textile industry overcome difficulties, avoiding the fact that some countries in the region are taking advantage of cheap labor.

Besides the above contents, enterprises also proposed a review for an adjustment of tolls, BOT, to reduce transportation and logistics costs. Enterprises also suggested improving specialized inspection, because a product that is tested by many ministries will increase the time and cost of businesses…

But overall, it can be clearly seen that all concerns of businesses are distinctly recognized by management agencies, as evidenced by the guidelines from Government for reviewing BOT fees, reducing the proportion of shipments that need to have specialized inspection to 15% instead of 30 to 35% as they are currently. Therefore, enterprises are able to hope for a transparent, convenient and less expensive business environment in the future.

By Chi Mai/ Thanh ha

Related News

HCM City Customs informed more than 7,000 businesses "escaped" to the HCM City Tax Department

HCM City Customs informed more than 7,000 businesses "escaped" to the HCM City Tax Department

VCN - Information about import-export activities of more than 7,000 businesses not operating at their business registration addresses has been provided to the Tax agency by the HCM City Customs Department.
Quang Ninh Customs considers businesses as partners for cooperation and development

Quang Ninh Customs considers businesses as partners for cooperation and development

VCN - Businesses also noted quick and timely access to customs legal documents; regularly receive support to solve difficulties from the Customs authorities.
Bank profits improve but there are no expectations

Bank profits improve but there are no expectations

VCN - According to assessments of credit institutions, the overall business situation and pre-tax profit of the banking system in the second quarter of 2024 has improved but is not really clear in the first quarter. and did not meet expectations.
Businesses highly appreciate support of Lang Son Customs

Businesses highly appreciate support of Lang Son Customs

VCN – The working group of the Customs Reform and Modernization Board (under the General Department of Vietnam Customs) held a workshop on survey and evaluation of actual implementation of the development of Customs-Business partnerships (2014-2024) at Lang Son Customs Department.

Latest News

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

VCN - According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Refraining from rushing, implementing steps gradually, and maintaining a clear vision are the recommendations that experts give to wood industry enterprises for successful digital transformation.

More News

Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Durian exports forecast to top 3 billion USD in 2024

Durian exports forecast to top 3 billion USD in 2024

Durian exports may surpass 3 billion USD this year, according to Dang Phuc Nguyen, General Secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).
FTA - support to promote pangasius export

FTA - support to promote pangasius export

VCN - The implementation of FTAs ​​always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including pangasius, to participate deeperly into the global production and supply chain.
Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

VCN - France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - In the context that the logistics industry in Vietnam is forecast to continue to grow strongly, many businesses are actively applying technology and expanding service chains to take advantage of opportunities and keep pace with the general trend.
MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.
Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
Read More

Your care

Latest Most read
Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Ms. Nguyen Thi Linh Vy, Production Management Director at Imity Company, also states that although they had planned digital transformation two years ago, the company has not yet dared to implement it.
Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Mobile Version