Thailand
Vietnam: Prime Minister approves to cut 675 business and investment conditions
The Hanoitimes – Prime Minister Nguyen Xuan Phuc on January 15 signed a decree to cut 675 investment and business conditions in trade sector, making it easier for production and business.
PM Phuc revealed at a conference on reviewing the industry and trade sector in 2017 and entrusting tasks for 2018 held in Hanoi on the same day.
The cut, which was the highest-ever record in the Ministry of Industry and Trade (MoIT)’s history, accounting for 55.5 percent of the total current business conditions in fields and sectors managed by MoIT.
Under Decree 08/2018/NĐ-CP, which took effect from January 15 this year, the removed investment and business conditions are in 17 fields and sectors, including petrol and oil; gas; explosive precursors; liquor; cigarette; food; electricity; temporary import for re-export of frozen food; commercial franchise; logistics; industrial precursors; goods exchanges; commercial assessment; multi-level marketing; e-commerce; and industrial explosives (including also disposal activities).
PM Phuc aappreciated efforts and achievements gained by the MoIT last year, pointing out that the ministry dismissed its own interests and pioneered in simplifying and cutting administrative procedures.
Experts agreed that the reduction of 675 business and investment conditions is considered a huge number, proving the MoIT’s determination to ensure the business environment in accordance with international standards.
According to MoIT Minister Tran Tuan Anh, the streamlining of business conditions will be the core of the ministry’s administrative reform process in the coming time, aiming to improve the legal system as well as investment and business environment.
Under Resolution No. 1 issued in early days of 2018, the Government has also requested to create fundamental improvement and strong changes to business environment indicators, aimed to cut and simplify 50 percent of current business conditions.
According to the Ministry of Planning and Investment, until December 22 last year, only 5 ministries have been reviewed and proposed the modification plans.
Apart from the MoIT, the Ministry of Agriculture and Rural Development has also planned to cut and modify business conditions. Accordingly, the ministry has proposed to revise or remove 118 out of 345 business and investment conditions under its managements, equivalent to 34.2 percent.
The Ministry of Construction also proposed to abolish 89 conditions and simplify 94 others among the total 215 investment and business conditions in the fields of its management.
The Ministry of Information and Communications has also reviewed business conditions, proposing to cut and modify 51 business conditions.
Last year was considered the year of cutting costs for enterprises after the Prime Minister’s working team examined specialized management ministries to reduce administrative procedures and costs that still caused troublesome for firms. More than 5,000 administrative procedures were cut and simplified, making it easier for production and business, according to a Government’s report sent to the Standing Committee of the National Assembly.
At the meeting with the MoIT on January 15, PM Phuc also lauded the sector’s accomplishment of reaching US$200 billion export turnover for the first time besides its success in privatization efforts, especially in the listing of Saigon Beer, Alcohol and Beverage Corporation (Sabeco). The State divestment from Sabeco has become the largest IPO in the country so far, receiving an estimated VND110 trillion (US$4.89 billion).
He urged the ministry to be swift in restructuring SOEs, especially groups and corporations in key economic sectors. This would be save management costs and improve effectiveness in the short-term and accelerate restructuring, thus ensuring sustainable growth of the economy in the long-term.
PM Phuc stressed that in 2018 and the next couple of years, industrial production, exports and domestic trade must develop in favor of hi-tech, competitive and environmentally friendly products.
Under Decree 08/2018/NĐ-CP, which took effect from January 15 this year, the removed investment and business conditions are in 17 fields and sectors, including petrol and oil; gas; explosive precursors; liquor; cigarette; food; electricity; temporary import for re-export of frozen food; commercial franchise; logistics; industrial precursors; goods exchanges; commercial assessment; multi-level marketing; e-commerce; and industrial explosives (including also disposal activities).
PM Phuc aappreciated efforts and achievements gained by the MoIT last year, pointing out that the ministry dismissed its own interests and pioneered in simplifying and cutting administrative procedures.
Experts agreed that the reduction of 675 business and investment conditions is considered a huge number, proving the MoIT’s determination to ensure the business environment in accordance with international standards.
According to MoIT Minister Tran Tuan Anh, the streamlining of business conditions will be the core of the ministry’s administrative reform process in the coming time, aiming to improve the legal system as well as investment and business environment.
Under Resolution No. 1 issued in early days of 2018, the Government has also requested to create fundamental improvement and strong changes to business environment indicators, aimed to cut and simplify 50 percent of current business conditions.
According to the Ministry of Planning and Investment, until December 22 last year, only 5 ministries have been reviewed and proposed the modification plans.
Apart from the MoIT, the Ministry of Agriculture and Rural Development has also planned to cut and modify business conditions. Accordingly, the ministry has proposed to revise or remove 118 out of 345 business and investment conditions under its managements, equivalent to 34.2 percent.
The Ministry of Construction also proposed to abolish 89 conditions and simplify 94 others among the total 215 investment and business conditions in the fields of its management.
The Ministry of Information and Communications has also reviewed business conditions, proposing to cut and modify 51 business conditions.
Last year was considered the year of cutting costs for enterprises after the Prime Minister’s working team examined specialized management ministries to reduce administrative procedures and costs that still caused troublesome for firms. More than 5,000 administrative procedures were cut and simplified, making it easier for production and business, according to a Government’s report sent to the Standing Committee of the National Assembly.
At the meeting with the MoIT on January 15, PM Phuc also lauded the sector’s accomplishment of reaching US$200 billion export turnover for the first time besides its success in privatization efforts, especially in the listing of Saigon Beer, Alcohol and Beverage Corporation (Sabeco). The State divestment from Sabeco has become the largest IPO in the country so far, receiving an estimated VND110 trillion (US$4.89 billion).
He urged the ministry to be swift in restructuring SOEs, especially groups and corporations in key economic sectors. This would be save management costs and improve effectiveness in the short-term and accelerate restructuring, thus ensuring sustainable growth of the economy in the long-term.
PM Phuc stressed that in 2018 and the next couple of years, industrial production, exports and domestic trade must develop in favor of hi-tech, competitive and environmentally friendly products.
Source: http://hanoitimes.com.vn/investment/2018/01/81E0C063/prime-minister-approves-to-cut-675-business-and-investment-conditions/