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Vietnamese firms mostly pleased with Gov’t support: survey

As many as 75 per cent of the enterprises surveyed by the Viet Nam Chamber of Commerce and Industry (VCCI) have seen the positive impact of the Government resolution on supporting and developing enterprises, according to a VCCI survey of 1,000 enterprises carried out at the end of 2016.


Vietnamese firms mostly pleased with Gov’t support: survey

Staff of Sao Kim Pharmaceutical Joint Stock Company in Ha Noi’s Me Linh District review the medicine chain. Market information and regulations need to be regularly updated so that firms can integrate information into their operation plans.


Other enterprises answered that they had not discerned any effect of the resolution on their operations because its solutions are geared for the long term and more time is needed to assess their impact.

The survey was conducted as the basis for a report to the Government on the effects of Resolution 35 issued in May 2016 after the first meeting between Prime Minister Nguyen Xuan Phuc and the business community.

The document laid out tasks for reforming administrative procedures, creating favourable conditions for start-up and innovative enterprises, and protecting their rights and interests.

In terms of administrative reform, survey participants reported that many localities had done well, shortening the time it takes to establish a company to two days.

Time for customs clearance of exports was reduced to below 10 days and of imports to 12 days. Notably, the northern province of Quang Ninh and the central province of Ha Tinh reported that time for export clearance was less than two days and less than four days for imports.

All localities have applied the one-stop-shop mechanism to help businesses save time and costs while implementing administrative procedures.

Many dialogues between local governments and business leaders were also held so that difficulties and obstacles that enterprises were facing were dealt with.

However, according to enterprises, more changes were needed to create favourable conditions for enterprises to take advantages of technology in operations, ensure businesses have equal chances to access resources, as well as to help enterprises reduce costs.

VCCI chairman Vu Tien Loc said that though the resolution requires enterprises to be inspected once per year, in fact they still had to undergo several overlapping inspections a year.

The Government should avoid interference in the market operation by using administrative orders, which could result in long-term consequences. Instead, the Government should encourage competition in the market, Loc said.

Discrimination

Le Van Hieu, vice chairman of the Viet Nam Young Entrepreneurs Association, said since the resolution was promulgated, the biggest success is the change in mindset of Government agencies from “thinking management to thinking service”.

But there was still discrimination between State-owned enterprises and private businesses in some legal documents. To create a level playing field, the invisible boundary must be eliminated, he stressed.

Hieu also suggested the Government allow private firms to use abandoned State assets like factories to avoid wasting public resources.

Vice chairman of the northern province of Vinh Phuc’s Enterprises Association, Duong Trong Khang, said ministries and agencies should use straightforward language when drafting directive decrees or circulars to avoid misunderstanding.

Information of markets and regulations needed to be regularly updated so that firms could integrate the information into their operation plans.

Mac Quoc Anh, vice chairman of the Ha Noi Smalll and Medium-sized Enterprise Association, said regulations of State agencies must be more consistent. He gave an example of some documents already cancelled by customs authorities but still required by banks or tax offices, creating hurdles for import-export companies.

According to the General Statistics Office (GSO), a record 110,000 enterprises were founded in 2016, up 16.2 per cent compared with 2015.

Since the first meeting between PM Phuc and the business community last year, more than 1,000 complaints were sent to State agencies, of which 77.4 per cent were addressed. 

VNS