Government to focus on reducing costs of doing business

At the dialogue between the government and private sector companies, representatives of government agencies have answered complaints and made promises of the things they are going to do in the near future to support the development of the private sector. Immediately after the conference, Prime Minister Nguyen Xuan Phuc signed Directive 20 on adjusting the practice of inspecting and examining companies. Below are quotes from the PM and government agencies.

Government to focus on reducing costs of doing business
Prime Minister Nguyen Xuan Phuc at the conference
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Prime Minister Nguyen Xuan Phuc

Compared to last year’s conference, there were not many strong complaints, which means that the government’s policies in the past year have been solving the right problems.

The government has achieved encouraging results in supporting and developing companies and improving the business environment. However, we are aware that companies are still facing obstacles.

In terms of regulations, there are still overlapping regulations and there are regulations that are not practical. We will build policies that ensure equality between state-owned and private sector companies.

Taxes and fees are still high, administrative procedures are still inconvenient to companies. Some state employees are asking for under-the-table money. Some companies are still having difficulties accessing capital and the market. There is still overlapping in the inspection and examination of companies, causing serious inconvenience.

In the near future, the government will focus on creating a transparent business environment that is convenient for companies. The chairmen of local people’s committees and the secretaries of local party committees, as well as ministers should carry out these tasks.

The government aims to create equal opportunities for all economic sectors and will strive to optimise resources for development and introduce measures to decrease costs for companies. This year, we will focus on cutting the financial burdens companies have to bear.

Deputy Prime Minister Truong Hoa Binh

The government will optimise the institution to facilitate companies’ development. The mechanism and policies must be in line with the market economy and international practices. Additionally, the government should ensure that these policies can mobilise all the resources and knowledge of the people to serve the national economic growth.

The government will continue with the administrative reform, boosting its capacity to implement policies. Meanwhile, there will be strict punishments to answer the violations of agencies or officials who annoy or harass enterprises. It is especially necessary to enhance the capacity of judiciary officials to better protect ownership rights and the freedom to do business. The government will fight corruption and prevent other violations.

Enterprises should have long-term vision, invest in science and technology, and obey the laws and regulations. Business associations should enhance their operation efficiency and strive to have a strong voice in policy discourse and policy building. 

Deputy Prime Minister Vu Duc Dam

The biggest obstacle of enterprises is administrative procedures, access to land, and taxation. I propose localities and ministries to carefully consider the complaints of businesses. Localities and ministries should increase information exchange and involve enterprises in their discussions, as well as promote the role of business associations in solving enterprises’ most burning problems.

Government agencies must be more determined. Policies need to be specific and practical to satisfy the requirements of enterprises and reduce unofficial costs. Also, public services have to be electronic to be transparent.

Nguyen Chi Dung - Minister of Planning and Investment

An important reason for the shortcomings in the implementation of Resolution 35 is that some leaders of some agencies in localities are not fully aware of its meaning and importance, which leads to significant inefficiencies. In addition, many officials still do not think their job is to control, not to serve companies.

I propose the PM to review and issue more directives on enhancing Resolution 35’s efficiency. The key factor is the leaders of agencies in localities who must be fully aware of the resolution’s spirit. They should be directly responsible for its success. Additionally, officials have to change their mindset and attitude and raise awareness and responsibility while implementing their tasks. 

To Lam - Minister of Public Security

The Ministry of Public Security will continue to speed up the reform of administrative procedures and create favourable conditions for people and businesses, enhance security and order in industrial parks and economic zones, prevent the formation of gathering places for gangs and social evils causing insecurity and disorder. The ministry will focus on destroying economic crime groups, contributing to a safe and equitable business investment environment.

The Ministry of Public Security also proposes that companies actively cooperate with the authorities in solving grievances and ensuring traffic order and safety, eliminating oversized vehicles, ensuring fire safety and (general?) security.

Le Minh Tri - Prosecutor General of the Supreme People’s Procuracy

Resolution 35 issued by the government is an important legal basis for companies’ development. The central agencies are acutely aware of their responsibility to support and develop enterprises, however, in some localities, this awareness is lower.

I propose the government to increase examinations in subordinate agencies and set strict punishments for violations to avoid recidivism. Meanwhile, the government should review the administrative procedures, adjust the shortcomings, and promote transparency.

The Supreme People’s Procuracy will study and eliminate the loopholes to prevent illegal profiteering by punishing violators to protect law-abiding enterprises. We will strive not to criminalise civil and economic relationships and propose the relevant agencies to adjust improper regulations.

The Supreme People’s Procuracy promises to stand by the government and companies. 

Minister of Natural Resources and Environment Tran Hong Ha

It is important to identify the environmentally responsible companies entitled to receive preferential and friendly policies from state agencies. A separate mechanism should be applied for enterprises which can have negative effects on the environment and use backward technology.

The government will adopt different policies towards environmentally friendly enterprises complying with environmental regulations and strictly control activities that are likely to cause serious pollution, with an aim to ensure sustainable development.

Regarding the specific complaints, the ministry is reviewing policies and laws on land and natural resources, with a mind to create the most conducive terms for enterprises and ensure the interests of people and sustainable development.

Tran Tuan Anh - Minister of Industry and Trade

The Ministry of Industry and Trade received many complaints from enterprises at the previous meeting. We reviewed and revised a number of out-dated regulations, issued more than 40 new circulars, and submitted 21 decrees and decisions to the government and the PM to amend and promulgate over the past year.

The ministry is also working to amend the inadequate regulations concerning gas, alcohol, and mineral businesses, while continuing to simplify administrative procedures, accelerate the application of online public services, support enterprises in accessing the market, promote their competitive advantages, and create the most favourable conditions for enterprises.

Nguyen Duc Chung - Chairman of the Hanoi People’s Committee

Hanoi will implement a wide range of solutions to support companies. Hanoi promises to reform in order to support companies’ development. Measures will include regular dialogues to tackle obstacles as they emerge, building a modern administration system, building an e-government system and smart city, as well as supporting startup companies to access resources like land and production sites and providing help to train human resources. In addition, Hanoi will work to connect companies with banks, helping them access the market and new technologies, and  promote regional linkages.

Hanoi is sending proposals to the government regarding the equitisation of SOEs, the transformation of public non-business units, and technology transfer.

By Trang Ngoc