Clearing Institutional Constraints for Businesses

1:42:14 PM | 7/23/2019

The Vietnam Chamber of Commerce and Industry (VCCI) successfully organized the 10th Meeting of the Executive Committee (6th tenure) on July 18, 2019.

Addressing the meeting, Dr. Vu Tien Loc, VCCI President, highlighted macroeconomic performance in the first six months of 2019, including slowing economic growth which is forecast to continue.

Creating a level playing field for SMEs

He said, although new business start-ups increased from a year ago, the growth rate has now started to slow down or decrease. Currently, Vietnam has more than 700,000 companies and 5.1 million business households. Thus, he expected that the Enterprise Law 4.0 will include 5 million business households. Vietnam is not inferior to the world by number of business households; however, policy efforts are supposed to improve quality growth and Vietnamese business quality in the international market.

Institutionally, conflicts of legal documents still matter, said Dr. Loc. The Provincial Competitiveness Index (PCI) Survey 2018 showed that  reform is slowing down and we are touching an institutional ceiling that needs to be removed for the sake of business development.

VCCI has spared no effort to promote the process of improving business conditions and reforming administrative procedures in the past time, said the VCCI President.

He stressed that the process of improving business conditions, if based on proposals of the ministry only, will unlikely work well. Therefore, VCCI and Central Institute for Economic Management (CIEM) have made reports and proposed cutting business conditions by at least 50%. The government has accepted this proposal, asking ministries to reduce business requirements by at least 50%.

Aggressive and consistent solutions

Vice VCCI President Hoang Quang Phong said, VCCI has launched many activities to improve the business environment in the first six months of the year, including the release of the Provincial Competitiveness Index (PCI) 2018, construction and deployment of the VCCI Action Plan for implementation of Resolution 02/NQ-CP and Resolution 35/NQ-CP of the Government; launch of investigations and polls of enterprises and business associations; and promotion of the “Vietnamese goods conquer Vietnamese people” campaign.

On the launch of the VCCI Action Plan for execution of the Governmental Resolution 35/NQ-CP on business support and development to 2020, VCCI has carried out all five assigned tasks, directly gathered 404 petitions of enterprises and business associations, he added. Relevant authorities have resolved and answered 250 petitions, accounting for 61.9%.

He also revealed some results of business surveys on answer quality of ministries and localities. Survey results showed that 48.57% of respondents said they were unsatisfied with responses to their petitions from ministries and agencies; over 14% were very satisfied; 31.4% enterprises are not very satisfied; and more than 5% had no opinion.

Mr. Phong said that VCCI is developing and publishing in-depth reports and research on business environment and corporate competitiveness, including Report on Vietnam’s current national competitiveness in 2006-2018, orientation and solutions to 2030, and vision to 2045; Report on Vietnam's opportunities and challenges in the process of international integration.

VCCI has also continued to monitor and review the realization of commitments and action plans for realization of commitments it has signed with Provincial/Municipal People’s Committee on creating a favorable environment for businesses till 2020.

VCCI has further performed its duties as a member of the Government Advisory Council on Administrative Procedure Reform, participated in the Prime Minister's Task Force to check five ministries reportedly making trouble for business operations.

Upcoming missions

VCCI Vice President Phong stressed that VCCI will focus on implementing key tasks in the last six months of 2019.

The agency will continue to represent the business community and businesspeople to advise the Party and the State, particularly promoting the implementation of Resolution 09/NQ-BCT on the entrepreneur role in construction and development and collecting comments on policymaking and lawmaking concerning business environment improvement.

Specifically, VCCI has further improved and successfully defended the State-level project “National Economic Competitiveness: Reality, issues and solutions” led by Dr. Vu Tien Loc, VCCI President. Through this project, he will make recommendations to the Central Government in the process of preparing for documents for the 13th Party Congress.

On trade and investment promotion, business training and development, and international integration support, VCCI will deploy many projects, forums, conferences and events organized with domestic and foreign units and organizations.

Representing employers, VCCI will continue to collect opinions on enforcement of labor laws from enterprises, the National Salary Council, and the Social Insurance Authority.

VCCI will also focus on organizational development, ensure its operation; restructure the apparatus and the staff; and develop new payroll mechanism for better work performance.

Huong Ly