PM Asks Further Admin Reform to Improve Business Environment

Vietnam Prime Minister Nguyen Tan Dung has recently issued several guidelines to further administration reform and demanded the establishment of telephone hotlines and email addresses on the issue, aiming to improve the business environment in the country, state media reported.

 

The move followed a recent assessment report by the World Bank and the International Finance Corp released early this month, which attributed Vietnam’s sliding six ranks to 104^th position to ineffective implementation of admin regulations in localities.

 

The leader of the Vietnam Government required further simplification of administrative procedures and removal of unnecessary and too complicated ones to raise transparency while asking relevant agencies to effectively deal with complaints.

 

Head of the Institute of Central Economics Management’s micro-economic policy research department, Nguyen Dinh Cuong said current admin procedures are complicated and licensing process are time-consuming, adding that unexpected kickbacks are also facing enterprises in applying for business licenses.

 

Investors in Vietnam often complain about the lack of transparency in admin procedures, president of the Association of Chartered Certified Accounts’ representative office, Nguyen Phuong Mai also said, adding businesses are concerned about the lack of regular update information on ministerial websites.

 

Le Dang Doanh, a leading economic expert said the Vietnam government should appraise the process of administrative reform based on the opinions of people and investors instead of the subjective assessment made by state management offices.

 

PM Dung recently also ordered related ministries and investigating agencies to further investigations into serious cases, especially the economic one and PMU18 scandal, the country’s most serious over the past 30 years.

 

Vietnam’s police bust some 780 corruption-related cases a year, according to the General Police Department.

 

Corruption eats up some 3-4 per cent of Vietnam’s GDP every year, or about $3 billion, according to Dr. Tran Dinh Thien, vice dean of the Vietnam Economics Institute. Meanwhile, foreign sources put the rate at some 6 per cent.

 

Vietnam together with the Philippines, Uganda, and Zambia is on the list of countries having the highest rates of investment leakage relating to corruption pandemic, according to the Transparency International.