Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), confirmed that removing unnecessary administrative procedures and business conditions will motivate Vietnamese businesses.
VCCI has held a workshop to introduce Decree No.15/2018/ND-CP detailing the execution of a number of articles of the Law on Food Safety. Does this signal an improving business climate as administrative procedures are being removed?
The business community has been anticipating this development for many years because they raised several recommendations to amend Decree No.38/2012/ND-CP on the implementation of a number of articles of the Law on Food Safety.
They are delighted that Decree No.15/2018/ND-CP has been approved. This decree allows firms to announce products themselves instead of announcing conformity or compliance with regulations on food safety, as stipulated by the late Decree 38, which wasted money, time, and failed to ensure food safety.
Furthermore, firms’ operations are not dependent on officers anymore. The new decree removes hazy and unspecified regulations and clearly outlines administrative procedures in line with the government’s wish to facilitate development.
The decree is going to be very helpful to associations and firms in this sector. Thanks to their recommendations and the pressure from the government and the prime minister, as well as the Ministry of Health’s changing the person in charge of amending Decree 38, Decree 15 was formulated, agreed, and issued this month.
The pressure exerted by the government and the prime minister to remove unnecessary business fees and conditions as well as administrative procedures enabled relevant ministries and agencies to act drastically. The issuance of Decree 15 demonstrated the determination of the government and perseverance of the business community, and should be taken as a lesson by other ministries and agencies in removing business conditions.
Following the requirement of removing 30-50 per cent of administrative procedures and business conditions, will 2018 be the year of removing business fees?
In addition to the macroeconomic indicators, the business community is paying attention to the removal of 30-50 per cent of the existing administrative procedures and business conditions. Savings made through this will be shifted to invest and develop their business.
Moreover, a belief in business has been formed. The startup community is also interested in a favourable business climate which welcomes and promotes creation and innovation.
These should be executed practically, from amending legal documents to actualising the government slogan, which is rule, integrity, action, creativity, and effectiveness.
In reality, state agencies are still shifting responsibility among themselves and ineffective solutions of amending or removing certain rules are still being raised. Thereby, state agencies should be more creative and innovative to make the right decisions and formulate the best fitting policies.
Remember that one year ago, at a speech for the new year, you said that businesses trusted the government to produce the desired results. How would you evaluate the current situation?
The government has made positive and effective changes to consolidate businesses’ belief. However, the business community needs synchronous action on all levels when it comes to administrative reform and removing business conditions. They also want to participate in more fields of the economy, such as providing public services and investment and trade promotion activities.
As a result, businesses’ competitiveness will improve, thanks to decreasing business fees and transparent and clear regulations and administrative procedures. Therefore, the target of increasing the proportion of private investment capital in social development investment to 41 per cent will be possible.