PM gets impatient with over 5,000 ‘small’ licenses

PM Nguyen Xuan Phuc chairs the Government’s regular meeting, Ha Noi, August 3, 2017 - Photo: VGP/Quang Hieu

PM Phuc made the request yesterday while chairing the Government’s regular meeting in July on August 3 on measures to cut income expenditures for businesses.

Minister of Finance Dinh Tien Dung reported that a document on cutting fees and income expenditures for enterprises was submitted to the PM on July 31.

Nevertheless, Minister of Construction Pham Hong Ha and Minister-Chairman of the Office of the Government Mai Tien Dung complained that the document has yet presented an overview of business expenditures. They also proposed the Government make fundamental direction.

Minister Dung stressed the need to focus on other costs in construction licenses, labor, market and capital access.

The Viet Nam Chamber of Commerce and Industry reported that out of 243 conditional business lines, there are 5,719 business conditions (usually so-called small licenses).

The Ministry of Industry and Trade regulates 27 conditional business lines, the largest of this kind with 1,220 small business licenses. The Ministry of Construction required the least conditional business lines (17) and 106 small licenses.

Deputy PM Vuong Dinh Hue stressed that businesses are suffering high expenditures from customs clearance. So far, the proportion of imported shipments subject to specialized inspections during the customs clearance period was 35%. However, the erroneous rate was only 0.06%. Thus, the proportion was set to cut to only 15%.

Cutting business costs

PM Phuc hailed the interest cuts and practical contribution of the MoF for the business circle.

However, business costs remained high especially capital, social insurance, and trade union fund. So far, in Viet Nam, the rate of social insurance payment was at the highest level in ASEAN at 32.5% of total monthly wage (of which businesses pay 22% and laborers 10.5%).

In addition, transport and logistics costs were also high, while costs relating to business, brand name and tax registration, and customs were streamlined but at low rate.

PM Phuc also emphasized costs on small business licenses for conditional business lines.

He highlighted the determination to turn 2017 into a year of cutting business costs.