On October 18, 2005, in Hanoi, the Prime Minister’s Research Commission (PMRC), the Germany Technical Co-operation Agency (GTZ) and the ADB-TA 4418-VIE project of the Asian Development Bank organised a seminar on business licences in order to find solutions to improve the business environment in Vietnam and increase the capability of small and medium-sized enterprises.
In fact, many organisations have studied business licences and conditions in Vietnam, as well as constraints of the licences to enterprises’ activities and development, and solutions to overcome them. The Vietnam Chamber of Commerce and Industry (VCCI) surveyed over 700 enterprises in five provinces and directly interviewed 30 enterprises nationwide. Based on the survey and the proposals from enterprises, ADB is making a comprehensive evaluation of business licences in Vietnam.
Reports to the seminar mentioned issues relating to business licences and conditions, including the Unified Enterprise Law and the Common Investment Law, which will be discussed by the National Assembly in late October. The reports shared the same idea that various licences exist in Vietnam. During the implementation of the Enterprises Law, the Government has removed 159 licences and according to PMRC and VCCI, there are around 300 business licences in 22 industries.
Pham Chi Lan, member of PMRC, stated about the necessity to change the regulations, including business licence. Lan said that in Vietnam direct costs for the regulation observation were very high, so were indirect costs. This has hampered the development of enterprises. She said that with such cumbersome business licence system, it would be difficult for Vietnam to reach its target of 500,000 enterprises by 2010.
Adding to the idea, Professor Associate and Dr Pham Duy Nghia from the Hanoi National University, said that there are so many business conditions and terms, that they could not be counted. To overcome such shortcomings, Dr Nghia said that the Government should set up a special group to review and systemise business licences and conditions. Also, the group is allowed to propose that the Prime Minister remove unreasonable business licences and conditions. Sharing experience with Vietnamese managers, experts, and entrepreneurs, Dr Jong Seok Kim, member of the Legal Reform Committee of the Republic of Korea, introduced legal reform and business licences in the Republic of Korea.
Issues relating business licences, including solutions and international experience, were discussed at the seminar. Dr Ngo Van Diem, deputy head of PMRC, the seminar’s results would be a scientific foundation for the Government to draft decrees, stipulating the implementation of the Common Investment Law and the Unified Enterprise Law. According to him, business licences should be stipulated clearly in the decree.
Nguyen Thoa
Vietnamese
