New milestone in Vietnam’s enterprise-oriented economic reform

Friday, 2017-09-29 11:34:21
 Font Size:     |        Print
 Font Size:     |  

NDO - The Ministry of Industry and Trade (MOIT) recently made a historic decision to scrap 675 business conditions in a significant move to remove the obstacles facing enterprises and improve the business climate in Vietnam.

The abolition came just after two weeks of reviewing the business regulations in the sectors under the MOIT’s jurisdiction.

The 675 removed conditions were 63 higher than the original plan and accounted for 55.5% of the total regulations under review.

Dau Anh Tuan, head of the Vietnam Chamber of Industry and Commerce’s Legal Department said that the MOIT’s move is a positive signal, adding that if other ministries follow suit, the business climate in Vietnam will improve significantly and the business community will gain more confidence in the government’s commitment to reform.

Echoing Tuan’s comment, Director of the Central Institute of Economic Management (CIEM) Nguyen Dinh Cung stated that, except for the MOIT, no other ministry has yet taken steps to discard unnecessary business conditions.

MOIT Minister Tran Tuan Anh emphasised that removing the obstacles to businesses will be his ministry’s foremost undertaking as part of a wider administrative reform that seeks to re-organise the ministry and improve the business climate in Vietnam.

He stated that the MOIT’s efforts are bringing about positive effects and the frequent complaints of businesses, such as those concerning checks on energy efficiency, formaldehyde content and steel quality, energy labelling and declaration of chemicals have been or will be resolved completely.

For example, abolishing checks on formaldehyde content in textile materials and sample products has helped garment enterprises to save VND1.5 million for each check and has reduced the customs clearance time by up to nearly four days.

Meanwhile for steel products, the MOIT has scaled down its audits on enterprises fully complying with quality control regulations, helping to reduce the customs clearance time by three to four days and is saving enterprises roughly VND2 million for auditing each shipment. The customs clearance time is expected to be cut further, as of October 1, when post-clearance audits come into effect.

Most enterprises stated that the MOIT’s bold administrative reforms have helped them to cut costs and possess more resources to enhance their competitiveness and grow larger.

CIEM Director Nguyen Dinh Cung stated that abolishing the unnecessary business conditions will boost Vietnam’s industrial production, trade and exports.

In the time ahead, the MOIT will continue listening to voices from the business community in order to promptly deal with any arising issues, seeking to reduce the types of goods that require audits and simplify the administrative procedures and business conditions within the scope of the ministry.