VCN - Improving the business environment and abolishing the provisions causing difficulties for enterprises and helping enterprises to not only have chances of domestic development, but to be able to compete with competitors on the world market, which are the greatest desires of the business community.
Enterprises still face many difficulties due to administrative procedures. Photo: Nguyen Ha.
2016 was assessed as a difficult year of the manufacturing sector and businesses with objective factors such as: the world economy remained difficult, the import market decreased import demand, natural disasters, epidemics and saltwater intrusion caused great damage to domestic production. Hence, some criteria are set out by the Industry and Commerce sector in 2016 were not reached, such as: industrial production index of the entire sector, despite high growth rates (up 7.5%), but still significantly lower than the increase of 9.8% of 2015 and 7.6% of 2014 due to the mining sector sharply declined (down 5.9%).
Besides, the above factors caused the negative impact on production and business of enterprises, another reason stated by experts and businesses was the story of policies causing difficulties for the enterprises. There are policies that prolong many years which caused troublesome and increased cost for enterprises.
It can be seen that the Ministry of Industry and Trade, has many procedures which are complained about by enterprises. Together with the spirit of "Government designs and acts", in 2016 the Ministry of Industry and Trade reviewed and abolished many procedures which caused difficulties for businesses.
For example in 2016, the Ministry of Industry and Trade abolished Circular 37/2015/TT-BCT on regulation of inspection of formaldehyde content in textile products, and issued Circular 36/2016/TT-BCT replaced Circular 07/2012/TT-BCT removing difficulties for the energy label businesses, and issued Circular 24/2016/ TT-BCT on shortening time for issuance of using power. The Ministry of Industry and Trade signed Decision 4846/QD-BCT approving the overall plan to simplify administrative procedures in State management of the Ministry of Industry and Trade 2017. Accordingly, the Ministry of Industry and Trade proposed to abolish 15 administrative procedures and simplify 108 of 443 administrative procedures in the fields under its state management, equivalent to 27.8% of total current administrative procedures. Recently, the Ministry of Industry and Trade issued a decision on abolition of arrangement for rice export traders and established working groups to amend some contents of Decree 109/2010/ND-CP on rice export business.
These efforts and drastic measures of the Ministry of Industry and Trade were recognized by the government and the business community. At the conference summarizing the working performance in 2016 and deploying the task of 2017 of the Ministry of Industry and Trade, recently, the Prime Minister also appreciated that the Ministry of Industry and Trade as the ministry which well implements administrative reform and structure of the apparatus.
Abolishing hindrances for production
Before the reforms and innovations in the thinking of the Ministry of Industry and Trade, many experts as well as businesses highly appreciated the inquiring spirit of the Minister of Industry and Trade.
Discussing with reporter of the Customs Newspaper, senior economist Le Dang Doanh said: "Compared with other ministries, the Ministry of Industry and Trade is the pioneer in reform, it is hoped that the Ministry of Industry and Trade will continue to stronger reform in supporting businesses and listening to feedback from businesses and experts”.
The textile enterprises are glad to know that MOIT has listened and got the opinions of enterprises when the Ministry abolished regulations of inspection of formaldehyde content in textile products.
According to Mr. Le Tien Truong, the General Director of Vietnam Textile Corporation, the Ministry of Industry and Trade decided to abolish the circular which is not amended to issue other amended contents, it proved that the approach of the State administration officials of the Ministry of Industry and Trade rapidly changed and attached to the interests of businesses. However, according to Mr. Truong, after Circular 37 was abolished, MOIT still needs to build other technical regulations to meet standards and ensure goods used in Vietnam for Vietnamese meet standards and ensure health and safety for consumers.
Despite initial reforms creating confidence for businesses but the role of the ministry is broad large including industry and trade, especially trade in the integration process, according to economic experts, the efforts of MOIT must continue to be promoted. Compared with the commitment of the free trade agreements which were signed by Vietnam, the Ministry of Industry and Trade need to further promote the reform in the internal economy and enhance competitiveness. "Obviously, we have a very large difference between commitment and integration," Mr. Doanh commented and gave examples, under the commitment of the Trans-Pacific Partnership Agreement by 2018, the import and export procedures in sea ports will be implemented within 48 hours. It is a strong commitment. Meanwhile, currently in 2017 but we still have a distance. "the Ministry of Industry and Trade needs to cooperate further with other ministries to reduce relevant procedures. In order to implement this commitment, not only the Customs and Trade sector but also related to the Ministry of Agriculture and Rural Development, and Ministry of Science and Technology. So they need to review, harmonize and collaborate to reform Vietnam’s business environment”, Mr. Doanh said.
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There are many “chains” which “bind” businesses and need to be abolished to create the momentum for enterprises’ development. Hence, abolishing hindrances for business and production of people and enterprises is a “command” of the Prime Minister requested the Ministry of Industry and Trade must drastically implement: “If we want to change, the essence of competitiveness in Vietnam must begin by creating the environment for people and businesses to well and fairly operate and not to be kept back. This is an important mission which is designed by the Government in which the Ministry of Industry and Trade is a member. What hinders for political institution of the Ministry of Industry and Trade and do not facilitate for the Ministry of Industry and Trade and business to develop, the Government will listen to the proposals of the Ministry of Industry and Trade to remove the difficulties for Vietnam’s production and business to develop.