Business conditions slashed in favor of enterprises

(VOVWORLD) - The Ministry of Industry and Trade (MoIT) last September, decided to remove 675 of 1,216 business and investment conditions. According to the Ministry leaders, the streamlining of business conditions to remove difficulties for businesses will be a central task of administrative reform, which aims to improve the business climate and build an enabling government.

The Ministry of Industry and Trade will cut out 675 business and investment conditions, 55.5% of the total. This is 63 conditions more than the initially projected. Easing conditions for doing business and investing has focused on 16 fields and sectors, including petrol and oil, gas, food, and logistics. Nguyen Dinh Cung, head of the Central Institute for Economic Management (CIEM), called this a historic decision that will increase competitiveness and remove preconditions, allowing businesses to cut costs and contribute to economic devleopment. Cung also called for strict implementation of the decision.

"Preconditions are often set when a new business model is created due to fear of using control. Changing management mindset is a prerequisite in this context.". said Cung.  

Tran Quoc Khanh, Deputy Minister of Industry and Trade, guaranteed that the decision to cut sub-licenses will not be reversed, adding that the Ministry will set up a mechanism to check on businesses’ compliance with the decision.

"The Ministry will set out standards for localities to monitor implementation of the decision rather than issuing initial business licenses. Local authorities will be empowered for better execution. I think 675 eased conditions are proper and under control.", said Khanh.

The Ministry of Industry and Trade said the decision will take effect across Vietnam and supervision will be carried out in accordance with standards and regulations set by related government agencies.