Lao Cai Business Association Increasing Linkage between Authority and Enterprises

10:04:53 PM | 30/9/2015

The Lao Cai Business Association, over the past years, has worked very actively and accompanied business community to overcome difficulties, acting as an important bridge connecting the provincial authorities and businesses. To learn more about the achievements, the Vietnam Business Forum interviewed Mr Vu Ngoc Cu, Permanent Vice Chairman of Lao Cai Business Association.
Over the past years, how has the Lao Cai Business Association been promoting its role under the spirit of "Solidarity - Innovation - Cooperation - Development" to increase linkage among enterprises and enterprises with the local authority?
With the function and the main task of being the bridge linking enterprises and state agencies as well as capturing information, collecting feedback from enterprises and giving critical comments on policies related to the activities of businesses with the competent state agencies to improve the investment environment in order to create a favorable business environment, the Lao Cai Business Association has actively carried out specific, practical activities to support enterprises. Specifically, the association made recommendations to the Government and relevant ministries of the problems under concern such as credit, land access, policies to support enterprises, and enterprise monopoly phenomenon in the Prime Minister's Dialogue with private enterprises conference in 2014. The association also made comments on the draft Circular stipulating the construction process and applied the list of avoidable cost in replacement of Decision No 18/2008/QD-BCT. To date, Circular 32/2014/TT-BTC issued by the Ministry of Industry and Trade, which came into effect on 25 November 2014, has created many advantages for enterprises doing business in the field of hydroelectricity such as advantage on water resource tax, value-added tax, and forest environmental services fee which will not be included in electricity price of hydropower plants. Instead, the buyer (Vietnam Electricity) will have to pay directly so that hydropower plants can pay for relevant agencies (Decision No. 12086/QD-BCT dated 31 December 2014 of the Ministry of Industry Trade).
Regarding the difficulties and problems of the enterprises subject to paying for forest environmental services under Decree No. 99/2010/ND-CP of the Government dated 24 September 2010, the Lao Cai Business Association has proposed to the National Assembly, the Government, the Ministry of Finance, the Ministry of Industry and Trade, and Lao Cai provincial People’s Committee. So far, this issue has been resolved towards giving more favorable conditions to businesses.
As reflected by a number of enterprises operating in the field of hydroelectricity, they have not been granted "Construction Permit", which makes it difficult to grant "Certificate of property on land". In terms of this issue, the association has submitted proposal to the province’s People’s Committee so that it will take into consideration and address the issue. As directed by the provincial People's Committee in Document No. 2480/UBND-CT dated 1 July 2014, on 3 July 2014, the Department for Construction, Natural Resources and Environment, the Department for Industry and Trade, the People’s Committees of the districts and the city organized a meeting with the enterprise association and representatives of a number of hydropower enterprises to discuss measures to solve the problem. To date, there has been the settlement guide in Document 4021/UBND-CT date 13 October 2014 of the Lao Cai’s People’s Committee.
The opinions and recommendations of the Enterprise Association regarding the difficulties and problems of import and export businesses through the border side gates and opening entrances in Lao Cai province have been taken into consideration and will be addressed by the competent authority, ministries and people’s committees.
Over the past time, what has the Association done to help enhance the competitiveness of enterprises?
Through joint activities, conferences and seminars, the association has always urged enterprises to create business morality and culture, corporate culture, solidarity and cooperation towards development.
The association, in collaboration with a number of organisations and agencies, opened two training courses on corporate governance for over 200 learners who are leaders and business managers.
Besides, the association has promptly provided to interested enterprises new policies of the State and the local authority related to enterprises in many different forms.