Economic Sector

Last updated: Wednesday, May 15, 2019


Significantly Improved Business Environment

Posted: Wednesday, November 14, 2018

After adopting Resolution 19 of the major duties and solutions to improve the business environment, enhance the national competitiveness for nearly 5 years (2015-2019), the reports and data show that the indices of Vietnam’s business environment have improved significantly.

At the workshop "Business environment in Vietnam: Looking back on 5 years of implementation of Resolution 19” by the Central Institute for Economic Management (CIEM) recently, Ms Nguyen Minh Thao, Director of CIEM's Business Environment and Competitiveness Committee, said that in 2018, despite slipping one place in the World Bank’s ease of doing business rankings, there are up to 8 out of 10 indicators having improved scores. Vietnam has seven out of ten topics which score higher points, including starting a business, getting electricity, registering property and resolving insolvency.
Getting electricity is the most noticeable topic that rises by 37 places in the ranking, reaching 27/190. Despite the downgrade, Vietnam is still considered by the World Bank as a reformed economy carrying out much reform. During past year, the country carried out three ones and improvements were made to make it easier to enforce contracts, pay taxes and start a business.

Strong action of the ministries and agencies

According to Nguyen Quoc Dung, Director of EVN's Business Department, EVN has taken daring steps to bring EVN closer to the business community. Since 2013, EVN has conducted a thorough study of the World Bank (WB)’s Doing Business methodology for improving the index of access to worldwide electricity. The correct understanding of WB’s valuation methodology has helped EVN develop comprehensive and effective solutions. In the period from 2013 - 2017, EVN changed its business management procedures three times in order to reduce the time and procedures, creating the most favourable conditions for enterprises to access electricity. Therefore, up to now, the time for businesses to access to electricity has reduced to only 31 days compared to 115 days in 2013; while the number of procedures has reduced from 6 to only 4, Mr Nguyen Quoc Dung said.

According to Ms Tran Thi Hong Minh, Director of the Business Registration Department of the Ministry of Planning and Investment, the business start-up index of Vietnam has made significant progress in the Doing Business 2019 report. Specifically, its score has reached 84.82/100, ranked at 104, up 2.6 points and up 19 levels compared to 2017. Of the three reforms in Vietnam's business environment that are acknowledged by WB in 2018, there are two reforms of the business start-up index in business registration area, namely publication of business registration information via the internet and the reduction of business registration fees. The process of starting a business in Vietnam has also made a considerably progress, as it currently consists of eight steps, which are implemented in 17 days; while in East Asia and the Pacific, the average number of steps is 6.8 steps, taken in 25.9 days.

In addition, the statistics show that the court has also contributed significantly to improve the business environment of Vietnam. Particularly, in the past five years, the judicial branch has drafted and submitted three law projects to the National Assembly for approval. These projects were related to business activities such as the Bankruptcy Law 2014, the Code of Civil Procedure 2015, the Law on Administrative Procedures 2015. At the same time, they issue resolutions for guiding the unified application of law in trial; improving the quality of corruption and economic trials, and dealing with commercial cases and bankruptcy.

According to Dr Nguyen Dinh Cung, President of CIEM, after this review, ministries and businesses should learn practical lessons to develop a new plan, a new decree to further improve the competitiveness of enterprises and the national economy in the coming period.

Anh Phuong

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