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Weak regulations obstruct business opportunities of enterprises

08:03 | 13/03/2017

VCN - In the past years, although the amendment of legal regulations related to business activities of enterprises has changed a lot, many unreasonable points in many legal documents still exist due to many subjective and objective reasons. 

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The expansive legal regulations will create favorable conditions for enterprises to develop their production and business. Photo: H. Diu

This is likely to cause many difficulties for enterprises, even loss of business opportunities in enterprise’s production and business


In the recent poll on legal regulations conducted by the Vietnam Chamber of Commerce and Industry (VCCI), among 123 proposals on weak regulations, there were many regulations relating to Decree 60/2014/ND- CP regulating printing activities. The typical is limitations for cooperation of printing facilities. According to the explanation, this cooperation has little impact on the public order, and is a normal business activity of enterprises, and is a business strategy, and help taking advantages, so issue of this regulation will reduce the economic efficiency of the printing industry, cause wastefulness and expense. Besides, there were shortcomings in the granting of import license for some machines and equipment for processing after printing. This regulation requires a license for imports, but it does not stipulate the basis to consider the approval of the license granting, which makes it impossible for enterprises to predict how their products and equipment will perform and this regulation will also implement one more procedure for business activities. It is worth mentioning that, the Decree 60/2014/ND-CP was issued and effective from 2014, but till now, the amendment has not made much progress.

Similarly, seafood enterprises were annoyed with legal regulations causing difficulties for their production such as: regulation on ice-glazing ratio - moisture content of exported pangasius in Government Decree 36/ 2014 / ND-CP on raising, processing and exporting pangasius. According to the explanation of enterprises, ice-glazing ratio - moisture content is an issue under agreement between the parties in the contract, and is not the issue of compulsory standards. Therefore, this regulation is interfering with the freedom of contracting of enterprises because each import market has different requirements, so if rigid regulation would be unreasonable. Although this law was postponed to be implemented by the end of 2015, enterprises hope that the government will completely abolish this unreasonable regulation.

Slow reaction

The main reasons given by enterprises before the limitations of the law are that the reception of comments is still slow and has not met the requirements of enterprises. According to lawyer Truong Thanh Duc, Chairman of Member Council of Basico Law Firm, many legal policies have been smooth, "immutable" but under the views of enterprises together with the market changes, this policy may cause disadvantages. Therefore, the ministries and branches need to monitor and realize more carefully to make reasonable amendments.

Talking with a Customs correspondent, Mr. Nguyen Cong Tuan, Chief of Vietnam Printing Association’s Office said that, although the Association and enterprises have repeatedly presented proposals and organized many conferences and seminars between the printing enterprises, the Associations and parties such as VCCI, the Ministry of Justice, the Ministry of Information and Communications, they have still not been really effective. Even, the regulation in Decree 105/2007 / ND-CP on printing of non- publication products for businesses has been absorbed and abolished, but somehow this regulation continues to return and causes difficulties for enterprises .

The results of the 2016 poll on legal regulations showed that the reason for the weak nominated regulations is mostly in reasonableness. Although the authorities determined targets and polices relatively well, process of measures issuance by legal regulations and assessment of impacts was not good. Therefore, the recommendations presented at this poll are the further attention to consultations between enterprises, affected entities, experts and legal staff. If this is implemented, it will attract more comments to help regulations better, especially when Vietnam is in open-door period, so the legal system must also follow international practices.

Regarding this issue, Mr. Luong Van Thang, Chairman of Viet Tiep Joint Stock Company said that the Government should support enterprises by giving "fishing rods" rather than "fish". Therefore, the law formulation must be correct and specific to the expectations and needs of enterprises. On the same point, Mr. Bui Danh Lien, Chairman of the Hanoi City Transport Association stated that enterprises consultations should be more concerned we should not let the situation where there are too many proposals repeated many times but management authorities are not concerned, which led to the law overlaps and law against law etc, annoying enterprises

Undeniably, the consultations of enterprises and positive reception in the law formulation of management authorities have created many advantages for production and business activities. According to Mr. Nguyen Cong Tuan, after many proposals and meetings until now, the Ministry of Information and Communication has a draft to revise the Decree 60/2014 / ND-CP.

Moreover, in the recent Resolution 19-2017 / NQ-CP of the Government on further implementation of the key tasks and measures to improve the business environment and enhance national competitiveness in 2017, oriented to 2020, the Prime Minister instructed the Ministry of Information and Communications to review the proposal on amending the Decree in the direction of clarifying the list of subjects of adjustment and abolishing regulations which restrict the freedom of business of enterprises such as regulations on restrictions on cooperation, import license and licensing for printing contracts from abroad .

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Hopefully, with the drastic action of the Government, the ministries and branches with positive contributions from enterprises and associations, legal regulations will be more perfect. This is not only the responsibility and interest of agencies and organizations, but also an inevitable rule when Vietnam's economy is increasingly opening its door towards integration.

By Huong Diu/ Huyen Trang