VCCI Chairman Vu Tien Loc speaks at a seminar publishing the report
on “Vietnam's business environment reform programme:
Perspectives from enterprises". (Source: VNA)
The statement was made by Dau Anh Tuan, head of the VCCI's Legal Department, at
a seminar in Hanoi on April 20 held to reveal the findings of the report on
“Vietnam’s business environment reform programme: Perspectives from
enterprises".
According to the report, the criteria of business establishment and access to
electricity were rated the highest, with 72.5 percent and 65.9 percent of
businesses rated good or very good in improvement, respectively. Bankruptcy
ranked last with 44.4 percent of businesses rated good or very good.
But the tendency of improvement seemed to be slowing down compared to previous
years, Tuan said.
The improvement trend of fields was quite contradictory. The rate of improvement
of fields with low scores such as bankruptcy, investor protection
and import-export, went up, while rates of fields with high scores, such as
business establishment, access to electricity, went down.
With regard to corporate finance, while credit access in 2020 was perceived to
be more difficult than in 2019, tax procedures became much easier. Locally, the
indicators were still more positive than in 2019, but the rate of improvement
had slowed down, he said.
He said that the administrative procedures related to construction, although
improved in recent years, had not really facilitated businesses. The most
difficult procedures include land, site clearance, construction planning, urban
planning, decisions on investment policy.
The report also showed that private and small-scale enterprises faced more
difficulties in completing construction procedures than foreign-invested and
large-scale enterprises.
Informal fees are now the biggest problem businesses are facing, particularly
records handling officers and the legal regulations.
Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM),
said there were still many obstacles for businesses such as complex regulation
system and overlapping and unnecessary business conditions.
Specialised inspection activities moved slowly. The one-door customs mechanism
had not yet been effective as businesses still had to submit paper copies. There
was a lack of connection between ministries, and the information technology
system was congested, she said.
Regarding judicial reform, the proportion of enterprises using courts to resolve
disputes increased, but the judgment enforcement rates of enforcement agencies
decreased, said Chairman of the Vietnam Chamber of Commerce and Industry (VCCI)
Vu Tien Loc.
“We have reduced the inequality between private and State-owned enterprises,
between private and FDI enterprises. But there are still complaints about
corruption and interest groups,” he said.
“The stability of our laws and policies has reduced market access conditions in
many sectors and industries, creating very good conditions for small and medium
enterprises to enter the market. However, in many areas that require large
investment and prolonged capital recovery, the risk of policy changes is still
worrying, hindering many large enterprises to invest money,” he said.
Source: VNA