Dong Nai Accelerating Administrative Reform

 

Strictly abided by the guiding principle “local authorities going side by side with businesses,” Dong Nai has accelerated administrative reform, especially in sectors relating to businesses. Dong Nai People’s Committee often meets with local and foreign businesses to discuss their constraints and find solutions. It has organized business meetings to help local businesses promote market information, business opportunities and matchmaking with foreign partners. In addition, the People’s Committee has organized business delegations to visit other countries to promote trade and investment with potential partners.

 

Regarding investment, the People’s Committee has issued regulations on administrative formalities and preferential treatment to attract investments in certain industries and localities in the province. The province’s Management Board of Industrial Zones has applied “one-stop shop” in granting investment licenses, saving time for investors. License proceedings are shortened from 15 days to 7 days, with 50 per cent of documents processed in 3-5 days. In particular, 98 per cent of import-export documents and labour licenses were processed in three days instead of 15 days, and the remaining in five days due to incomplete documents. 100 per cent of ASEAN certificates of origin are granted in two hours. 50 per cent of investment licenses were granted in 1-3 days. Most licenses were granted in half of the time anticipated. 70 licenses were granted within a day of the investor application. Decisions on investment capital and project investment were made in 15 days instead of a month. As three board members are authorized to sign documents instead of a single one, the proceedings can be completed in time. The Management Board is held responsible for any delay.

 

In import-export activities, licenses were granted in three days instead of 15 days fixed by Ministry of Trade, with 70 per cent of licenses granted in one day and 17 per cent in two days. To simplify formalities, Dong Nai Customs Office has developed many efficient management programs and declarations by website. It is also the first Customs Office experimenting with one-person import-export control. In 2007, Dong Nai will apply “electronic customs declarations” to facilitate customs formalities for businesses.

 

Since 2005, the Taxation Department has applied self-declaration of taxes in five provinces and cities, including Dong Nai. After two years of experiments at 200 enterprises in the province, the mechanism has proven to be efficient and revenue from it makes up half the province’s budget.

 

Mr Ngo Minh Dung, Deputy Head of the Administrative Reform Board and Deputy Head of the Interior Department, said administrative reform is carried out not only in business-related agencies but also in other areas with “one-stop shop” mechanisms, reorganization of offices, upgrading of staff and working style, IT and ISO applications, transparency on websites of the People’s Committee and Departments of Industry, Science and Technology, Trade and Tourism, Planning and Investment, and the IZ Management Board. Administrative reform has made available the necessary information and networking services for business registration, customs formalities and product quality certificates.

 

During this time of increased integration and competition, Dong Nai is applying “inter-related one-stop shop” to save time and money for businesses. They can solve all problems in one go. In implementing Circular 02/2007/TTLT-BKH-BTC-BCA of February 27, 2007 of the Ministries of Planning and Investment, Finance, and Public Security, local authorities will coordinate registrations of businesses, taxation, and seals of enterprises outside industrial zones. In addition, the Environment Department and concerned authorities will help in formalities relating to the land.

 

In 2007, “one-stop shop” mechanism will be applied in all departments, districts and communes. Heads of all agencies and offices are responsible for assisting enterprises in their business activities.