Economic Sector

Last updated: Tuesday, February 19, 2019


There Remain Barriers to Specialised Inspection

Posted: Thursday, June 28, 2018

The Global Competitiveness Report shows that Vietnam’s national competitiveness index in 2017 increased by five places, business environment index increased by 14, and innovation index increased by 12 places. Each of these figures shows the highest growth so far. Despite that, from the perspective of specialised management, particularly in exports and imports, there remain barriers.

As the 3,000 business conditions were stated, in January 2018, the Prime Minister signed the Decree under which 675 business conditions have been reduced. According to Mr Nguyen Dinh Cung, President of the Central Institute of Economic Management (CIEM), there would have had 738 more business conditions that would be reduced and simplified.

At the conference held by CIEM on June 13, on the implementation of Government’s Resolution 19 on specialised management of import and export goods, Mr Pham Thanh Binh, GIG Project expert, outspokenly pointed out the unfinished tasks and targets, which were the application of risk management in specialised inspection management, including post-inspection and the application of prioritized enterprises in specialised inspection management. Besides, the regulation on “proactively recognising the quality of trademarks and famous producers, of the goods which are produced in developed countries and regions” is still lacking. The digitalisation of specialised inspection and management procedure has not been carried out properly. The products not subject to national standards are still required to be certified. Currently, 25 per cent of product categories are under the inspection of many agencies. Furthermore, price consultation, product valuation for tax are complicated, leading to the lack of fairness.

According to Mr Vu Quoc Tuan, representative from EuroCham Vietnam, during the past time, despite the fact that Government called for administrative procedure simplification and reform, shifting from pre to post-inspection, facilitating business and promoting economy productivity, there remain a lot of barriers. Business complaints to EuroCham have revealed that one in five shipments is subjected to inspection although the shipment has been proved to exposed no risk before. When it comes to sampling, the authority takes up to five samples which costs business nearly VND5 million. It is a big deal.

The weak point in policy exists in the case of the extension of specialised management to animal products of Ministry of Agriculture and Rural Development. This makes coffee with a small proportion of milk which have been heat treated, peeled out for quality check.

Regarding energy efficiency inspection, management and labelling, Mr Pham Thanh Binh said, this was the most complicated, time-consuming and costly procedure up to now. According to business’s complaints, the total cost for measuring four refrigerator models were VND149 million at Quality Assurance and Testing Centre 3 (Quatest 3).

In September 2017, Deputy Prime Minister Vuong Dinh Hue asked to reduce by at least 50 per cent the items on the list of group 2 which are subjected to State inspection. Relevant ministries were required to have finished this task by June 2018. So far this goal has not been achieved.

According to Mr Nguyen Dinh Cung, in order to achieve the objective of reforming specialised management of import and export goods, it is necessary to strengthen the timely and effective connection between management agencies, raise the level of recognition of inspection results among functional units, encouraging cooperation and feedback mechanisms from enterprises and communities, sharing information, proposing amendments and abolition of inappropriate regulations and procedures.

Nguyen Thanh

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