Feedback from Government of Vietnam regarding plan to simplify business regulations in Vietnam

Feedback from Government of Vietnam regarding plan to simplify business regulations in Vietnam (Image from the internet)

On September 12, 2024, the Office of the Government of Vietnam issued Official Dispatch 6532/VPCP-KSTT regarding feedback on the plan to simplify business regulations in Vietnam.

Feedback from Government of Vietnam regarding plan to simplify business regulations in Vietnam

In response to Official Dispatch 6613/BCT-PC dated August 30, 2024, from the Ministry of Industry and Trade regarding the solicitation of opinions on the plan to reduce and simplify regulations related to business activities of the Ministry of Industry and Trade in 2025 (draft plan), the Office of the Government of Vietnam has the following opinions:

(1) Regarding the draft plan

- The draft plan proposes to reduce and simplify 69/642 business regulations (10.75%) under the management scope of the Ministry of Industry and Trade, in 24 legal documents (03 Laws, 14 Decrees, 07 Circulars), in the fields of: competition management, import-export, food safety, electricity, chemicals, industrial explosives, automobiles, gasoline business, and light industry. The plans focus on:

(i) reducing and simplifying administrative procedures (AP);

(ii) reducing and simplifying requirements and conditions;

(iii) decentralizing the resolution of APs, etc., to facilitate and reduce costs for participants.

- Some plan contents do not meet the requirements of rationality, specifically:

(i) Certain business operation regulations have been approved for reduction and simplification (abolishing the requirement for copies of Business Registration Certificates, Investment Registration Certificates, or equivalent legal decisions, as these can be accessed through the National Database on Business Registration for certain APs in the trade promotion sector approved in Decision 209/QD-TTg dated February 29, 2024, by the Prime Minister of the Government of Vietnam). However, many APs in other fields with similar requirements (such as: Issuance of Investment Eligibility Certificates for tobacco cultivation; issuing/re-issuing Alcohol Distribution Licenses; Transshipment Business Licenses; Licenses for establishing Branches for foreign traders in Vietnam; reissuing and amending Business Licenses for economic organizations with foreign investment, etc.) have not been reviewed or proposed for reduction and simplification.

(ii) The reduction and simplification plans for the import-export sectors (serial numbers 1, 2, 3, 6, 7, 16) and the industrial explosives sector (serial numbers 1, 2) have been approved by the Prime Minister of the Government of Vietnam in Decision 1015/QD-TTg dated August 30, 2022.

(iii) The proposal to decentralize the resolution of 12 APs in the light industry sector from the Minister of Industry and Trade to the Heads of units under the Ministry does not provide reasons.

(iv) The implementation timeline for the reduction and simplification plan in certain sectors (competition management, import-export, etc.) not being enforced from 2024 or extending to 2026 is inappropriate and does not promptly facilitate citizens and businesses.

(2) Recommendations to the Ministry of Industry and Trade of Vietnam

- Based on the opinions in section 1 above, it is recommended that the Ministry of Industry and Trade continue to review and complete the reduction and simplification plans in the draft, ensuring comprehensive, rational, and feasible goals in accordance with the Government of Vietnam's objectives, as stated in Resolution 68/NQ-CP of 2020, Resolution 01/NQ-CP and Resolution 02/NQ-CP of 2024, before submitting them to the Prime Minister of the Government of Vietnam for consideration and approval.

- Do not include the contents of the simplification plans already approved by the Prime Minister of the Government of Vietnam in Decision 1015/QD-TTg. Simultaneously, promptly implement the decentralization plans approved, as directed by the Government of Vietnam and the Prime Minister of the Government of Vietnam (34/45 plans have not been implemented and are overdue).

- Request the Ministry to continue researching and reviewing to substantially and effectively reduce and simplify business regulations within the scope of management according to the directives of the Government of Vietnam and the Prime Minister of the Government of Vietnam.

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