Administrative Procedures in Trade Promotion: Various Problems Need to be Addressed

11:29:49 AM | 12/31/2015

“Most companies are satisfied with the way relevant departments and officials handle administrative procedures in trade promotion. But there are still many problems and shortcomings in local implementation that are affecting activities of business community,” confirmed Mr Le Anh Quan, Deputy Director of the Trade Promotion Management Department, Ministry of Industry and Trade, at the workshop “Improving the efficiency of State management of trade promotion in the South”, held by the Vietnam Trade Promotion Agency (Vietrade- Ministry of Industry and Trade) HCM City Department of Industry and Trade and the European Trade Policy and Investment Support Project (EU-MUTRAP).
In the opening speech, Mr Le Hoang Tai, Vietrade Deputy Director, said that, being well aware of the role of trade promotion in economic development, over recent time, the state has issued various regulation documents in this area such as the Commercial Law; Decree 37/2006/ ND-CP, Decree 68/2009/ND-CP and Decree 37/2006/ND-CP of the government; Joint Circular 07/2207/TTLT-BTM-BTC dated 06/7/2007 of the Ministry of Commerce and the Ministry of Finance providing guidance on a number of articles on promotional activities and trade fairs, and trade shows. Basically, the current provisions on trade promotion were relatively complete and comprehensive, creating a clear and transparent legal environment to boost trade promotion, to protect the rights of consumers and ensure the efficiency of state management. However, as the economy is developing rapidly, trade promotion activities were also getting more diverse and complex, posing difficulties for the state management of trade promotion; especially the implementation of administrative procedures in this field.
 
According to Mr Le Anh Quan, a survey of Vietrade among businesses on the implementation of administrative procedures regarding trade promotion at different levels showed that the number of cases received in the central and local levels are quite equivalent (73 percent and 63 percent, respectively). In practice, the majority of businesses gave a high rating for the handling of procedures at the “one door” or “one stop shop” body. Officers at the “one stop shop” agencies were efficient in meeting businesses’ demands; procedures were posted publicly and had clear and complete instructions; the applying of IT was good. The overall result indicated that 96 percent of enterprises were satisfied with the handling of administrative procedures in relevant agencies, as well as administrative officers.
 
However, the biggest outstanding shortcomings in receiving and handling administrative procedures relating to trade promotion was the lack of transparent and specific information, as well as the complication of application forms. These problems, according to the companies, mostly occurred at the local implementation. This was an obstacle for traders in preparing administrative documents to notify and register trade promotion activities; it also caused difficulties for the receiving, guiding, handling and archiving of state management bodies in localities. Additionally, the deadline for receiving and handling administrative procedures in this area was also considered a significant challenge for businesses and authorities. While companies all called for a longer deadline for first time submission or document amendment and supplement, and a shorter processing period, authorised state agencies wished for the reverse. “This situation calls for the law to strike a balance between both parties’ interests and demands, in accordance with the actual requirements while ensuring the management of the state,” stressed Mr Quan.
 
In an attempt to solve the difficulties and shortcomings encountered in the implementation of administrative procedures regarding trade promotion, Mr Pham Thanh Kien - Deputy Director of HCM City Department of Trade and Industry, proposed the plan to receive and handle administrative procedures online in order to reduce the time and number of procedures for businesses. Mr Nguyen Xuan Hong, Deputy Director of Long An Department of Trade and Industry, suggested there should be more detailed guidelines on file submission; more support for the upgrade of hardware as well as human resources, and the upgrade of online public services level 3 and 4. Meanwhile, the representatives of Soc Trang Department of Industry and Trade proposed allocating more staff to receive and handle administrative procedures; simultaneously strengthening administrative reform, reducing unnecessary procedures and shortening the time for receiving and resolving issues.
 
From the other side, trade companies present at the workshop proposed a wide range of reform measures to facilitate their activities, such as using one uniform application form in procedures nationwide; applying online filing to reduce editing time; allowing online notification or registration to ensure implementation time for trade promotion activities; or using online public services in receiving and processing administrative procedures for trade promotion to shorten processing and handling time.
 
Taking in consideration those comments, Mr Le Hoang Tai said Vietrade would gather all complaints and proposals from representatives of provincial departments of trade as well as representatives of the business community present at the workshop, then proceed to work with concerned departments and agencies to design solutions to existing difficulties in the implementation of administrative reform.
 
My Chau