Ministry urges improved business climate
Updated : Tuesday, January 09, 2018 3:16 PM (GMT+0700)

TheMinistry of Planning and Investment has proposed the government to hastenefforts aimed at improving the business environment in 2018.

Illustrative image. Source: VNA

The ministry said Vietnam’sranking in doing business had improved considerably in the past four yearssince the government implemented Resolution 19 on improving the businessclimate and national competitiveness.

However, it lackedsustainability because there were indices with no improvement at all or withresults far below expectation, such as infrastructure quality, ease of startinga business or insolvency proceedings, the ministry said.

It proposed Resolution 19for 2018 to be issued with a focus on measures to lift those indices thatranked low as well as to add targets to improve competitiveness in the tourismand logistics sectors and to enhance labour productivity.

Vietnam’s target is to rank50-60 in the business climate in 2018.

Last year, the country movedup 14 places to rank 68th out of 190 countries, according to theWorld Bank’s Doing Business report.

The percentage of goodsrequiring specialised checks for customs clearance is targeted to be cut from30-35 percent to 15 percent in the third quarter of 2018.

Resolution 19 had stipulatedthis to be achieved by 2017, which did not materialise.

The ministry revealed in arecent report that the cost for specialised checks for customs clearance wasstill a huge burden on businesses.

The ministry cited the caseof a company importing wood products which must bear cost worth dozens ofbillions of dong per year for storage as a result of quarantinerequirement.

The specialised checks werenot based on a risk-based approach, did not allow the use of the testingresults on the same import product models of other companies and did notactively recognise quality of famous brands. “This causes huge wastes”, theministry said.

In addition to this,specialised checks proved to be time consuming, adding to the risks ofbusinesses, according to the ministry.

For example, for animalfeed, the time for quality check at the Department of Animal Husbandry was 14days and three weeks each at the Directorate of Fisheries and Directorate ofEnergy.

Statistics of the customswatchdog showed there were still some 430 documents on specialised checks.

Overlap in specialisedchecks between ministries, such as Industry and Trade, Agriculture and RuralDevelopment and Health was another problem.

According to the VietnamChamber of Commerce and Industry (VCCI), businesses expected moreadministrative reforms in tax, customs and land access as well as reduction inunnecessary and time-consuming specialised checks.

VCCI said businessesfavoured an end to overlapping between ministries and simplified procedures.

Firms also called for a fairaccess to resources and business opportunities and reduced business costs.


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