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Economic Sector

Last updated: Thursday, February 21, 2019

 

Resolution 02 Empowers Ministers

Posted: Tuesday, January 15, 2019


With a new approach, Resolution 02 gives full power to ministers who will bear heavy responsibility and promote their initiative and creativity.

The Government of Vietnam recently issued Resolution 02/NQ-CP on continued implementation of main tasks and solutions for better business environment and higher national competitiveness in 2019 and to 2021.

Getting into ASEAN 4
Again, the Government aims to bring Vietnam's business environment to ASEAN 4 level, the group of four most developed countries in ASEAN. This means that Vietnam will surpass the current average.

Following previous Resolutions 19, the overall objective of Resolution 02/NQ-CP/2019 is to raise Vietnam’s standing on international rankings on business environment and competitiveness by the World Bank (WB), the World Economic Forum (WEF), the World Intellectual Property Organization (WIPO) and the United Nations (UN), aiming to bring our country to the Group of ASEAN 4.

Accordingly, in 2019, Vietnam’s standing on the WB’s ease of doing business (EoDB) will be raised by 5 - 7 places; the WEF’s Global Competitiveness Index (GCI 4.0) by 2 - 5 places; and the WIPO’s Global Innovation Index (GII) by 2 - 3 places. Many indicators such as logistics (WB), tourism (WEF) and e-government (UN) have also been quantified in the Resolution.

At present, Vietnam is ranked 69th out of 190 countries on the WB’s Doing Business Rankings and 77th out of 140 countries on the WEF’s Global Competitiveness Index. In ASEAN, Vietnam ranked 5th in business environment and 7th in competitiveness.

This year's resolution specifies five solutions in four key areas that the Government and the Prime Minister give priority. And, if the resolution works out, Vietnam will certainly achieve strong progress in business environment and competitiveness.

Notably, among these solutions, the resolution defines the responsibility of agencies for each indicator of business environment and competitiveness. Unlike previous versions of Resolution 19, which introduced hundreds of specific solutions, and dozens of solutions assigned by the Government, this resolution assigns particular targets to ministries rather than specific solutions and tasks with each indicator. This means that the responsibility of designated ministries is clearly defined in first tasks and the solutions of the Resolution.

Empowering ministers
The resolution requires ministries and agencies to further abolish and simplify business conditions in a substantive way, bringing substantial benefits to the business community. At the local level, chairpersons and vice chairpersons in charge also know what is to be abolished or what added, to direct their subordinate directors and officials in implementation.

To be fair, this requirement ties the responsibility of ministers with the process of reducing business conditions within their jurisdiction.

“Such way of doing heightens the responsibility of ministers but they will feel very honored when the initiative and creativity of each minister will be identified and assessed. They will face pressure when they do not do or do not meet their goals,” said Dr. Nguyen Dinh Cung, President of the Central Institute for Economic Management (CIEM).

Closely observing the process of reducing business conditions, he pointed out, “After five years of carrying out Resolution 19, central and local authorities have generally begun to get used to the approach of developing the resolution, ranking and calculating indicators. Resolution 02 advocates enhancing the responsibility of ministers and upholds the initiative and creativity of ministers in performing their tasks. They have full power to actively implement necessary solutions or propose competent agencies to perform necessary solutions to achieve the set objectives.”

In particular, he cited that, as for the access to electricity index, EVN has full discretion to research and execute solutions; thus, its solutions are more complete and more realistic than stated tasks in the resolution. For that reason, this index has improved significantly in the last five years.

“They see their responsibility higher. When they have achievements, they deserve praise” he said.

This is considered one of important solutions to improve the business environment in which this solution particularly emphasizes the ministerial role.

H.T








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