Economic Sector

Last updated: Thursday, February 21, 2019


Efforts to Improve Business Conditions in 2018

Posted: Wednesday, January 17, 2018

Vietnam will cut and simplify 50 percent of the list of specialised inspection procedures and business investment conditions, aiming to put Vietnam into the ASEAN - 4 group in terms of competitiveness and business environment in 2018.

That is one of the important contents of Resolution 138 / NQ-CP at the Government meeting with the local authorities, recently signed by the Prime Minister. Accordingly, the ministries, agencies and localities will focus on perfecting legal mechanisms and policies on business investment, support for small and medium enterprises, cooperatives and individual business households through regular policy dialogue, timely handling the recommendations of the business.

Recently, the Ministry of Planning and Investment also announced the results of the implementation of the 2017 Resolution. A series of "startling" figures on energy efficiency audits, veterinary quarantine charges and the cost of importing quality feed have been raised, it seems to be "scratching the itch" of the business. The cost of specialised inspection is one of the contents of Resolution 123 / NQ-CP indicating that there are many low points. This shows that in addition to the high promotion indexes, there are still improved indicators not as expected.

Regarding the cost of specialised inspection, perhaps the story of Vinh An Company Limited will not be easily forgotten by public opinion. Accordingly, the company said that from 2013 until now, Vinh An Company lost nearly VND1 billion for the cost of testing the quality of feed materials. Thus, on average, each year the company has to spend VND300 million completing the specialised inspection procedures. In addition, the actual inspection time lasts up to 48 hours, in some cases even up to 72 hours. Thus, storage costs of businesses are "terribly high". Because in the port area of Hai Phong, Quang Ninh, there are about 80 million standard containers per year, of which about 10 percent is animal feed or feed ingredients, or about 8 million containers.

Although many international organisations and financial institutions have recognised the business environment and competitiveness of Vietnam in 2017, three sets of target indicators have all gone up. Specifically, competitiveness has increased five degrees from 60/138 in 2016 to 55/137, and the business environment has been ranked 68/190, up 14 degrees from 2016, the highest increase in the last decade. If calculating two consecutive years, the business environment increased 23 levels; innovation improved 12 levels, reaching the rank of 47/127. This is also the highest rank that Vietnam has achieved so far.

Resolution 123 / NQ-CP has again shown the Government's determination to improve the business environment and to facilitate investors in 2018 and beyond.
In addition, Resolution 123 / NQ-CP also sets out the expectation that by the end of 2018, 100 percent of the units under the ministries, central branches and provincial people's committees shall deal with and handle the work files online, to focus on effectively deploying the electronic one-stop information system at ministries, branches and localities.


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