Improving the business environment needs to be more substantive

Many improved indicators

At a recent conference to implement Resolution 02, management agencies, the business community, trade associations and economic experts highly appreciated the Government’s efforts to improve the business environment through a wide range of documents and regular monthly meetings. Thanks to that, the business environment has become more conducive, as seen in simplified administrative procedures.

The Central Institute of Economic Management (CIEM) said to support enterprises’ recovery and growth, and in 2023, the Government and the Prime Minister promptly directed, amended, supplemented and introduced many legal documents, mechanisms and policies and aggressively took various measures to address the institutional bottlenecks facing enterprises. As a result, the macroeconomic stability was maintained, inflation was put under control and public investment disbursement witnessed positive results. Such results have helped revitalise the private sector and improve national credit rankings.

According to Nguyen Minh Thao, head of the CIEM’s business environment and competitiveness research department, in the global rankings for 2024, Vietnam has witnessed improvement in some indicators. Specifically, in terms of market development level, Vietnam ranked 59 globally and 11 out of 39 economies in the Asia-Pacific, much better than position 72 globally in 2023. Vietnam also jumped two notches from 48 to 46 in innovation capacity.

These positive changes were recognised by the Vietnam Chamber of Commerce and Industry (VCCI). VCCI Deputy Secretary-General Dau Anh Tuan pointed out that many obstacles were promptly addressed, business regulations were simplified, and devolution in conducting administrative procedures was strengthened.

During 2021-2023, ministries, agencies and local authorities have reduced and simplified 2,483 business regulations in 201 legal documents. The Prime Minister approved plans to cut and simplify 1,191 business regulations in 221 documents.

Soon bringing Resolution to life

However, according to the VCCI, administrative reform still needs to be carried out more substantively since many business regulation reduction proposals still lack breakthroughs, and many bottlenecks reported by enterprises have not been resolved when new regulations arise, causing difficulty for enterprises.

In its report, the CIEM also noted that the current business climate remains challenging. Obstacles concerning business requirements are hindering the operation and increasing the compliance costs of enterprises, thereby reducing their business and production motivation. Reform to specialised inspections has stalled since 2019, although this content is very important to export-import activities.

In addition, although the number of public services conducted online has improved considerably, the actual implementation is just a formality, as reform efforts in some localities are not yet clear and do not follow closely with the reality of enterprises.

In this context, CIEM Director Tran Thi Hong Minh stated that the introduction of Resolution 02 carries the message that improving the business environment is a high-priority task, which is expected to reinforce the confidence of investors and enterprises, helping to promote economic recovery and development.

Enterprises expect that Resolution 02 will be implemented aggressively and effectively, quickly removing the difficulties facing enterprises.

Deputy Minister of Planning and Investment Tran Duy Dong asked ministries, agencies and localities which have not issued their action plans to quickly issue their plans, in which the specific goals, tasks and roadmaps must be determined and responsibilities must be defined clearly.

For trade associations and the business community, it is necessary to proactively make policy contributions. The Ministry of Planning and Investment is committed to working with other ministries, local authorities, the business community and the relevant sides to promote institutional reform and create a favourable business environment to facilitate economic recovery and growth.