Last month, the Prime Minister signed an official dispatch urging ministries, sectors and localities to reduce and simplify administrative procedures, aiming to eliminate at least 30% of business investment conditions and time to process administrative procedures. The official dispatch aims to institutionalize the determination of the Politburo and the National Assembly in developing the private economy, so that this force can develop dramatically.

Regarding the simplification of administrative procedures, Mr. Nguyen Ba Diep, co-founder of MoMo Financial Technology Group, stated that one of the difficulties of new technology enterprises is complying with the regulations of different management ministries.

For example, this company is under the management of five ministries and ministerial-level agencies, requiring an equivalent number of staff to make reports to management levels. Every month, Mr. Diep calculated that MoMo must spend 100 million VND to pay salaries for these 5 staff to ensure compliance.

He expects there to be a specific focal point to address issues related to the private economy or FinTech (financial technology sector), instead of businesses having to contact multiple ministries every time they provide new products and services.

In fact, many compliance costs, business conditions, and administrative procedures are "entangling" businesses. After more than two decades of producing, trading, and exporting agricultural products, one of the biggest obstacles for "pepper king" Phuc Sinh is tax refunds. "A document worth tens of billions of dong can be stuck just because the inspection agency has not accurately checked an invoice worth several hundred thousand dong," said Mr. Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh. Cumbersome tax refund procedures are causing businesses to waste time and "bury" capital.

Another procedure that the business community expects to be removed is the approval of investment policies and registration of investment projects. Explaining more clearly, Dr. Le Duy Binh, Director of Economica Vietnam, said that this procedure causes high compliance costs while not having much meaning in terms of management methods. Because, the investment activities of enterprises have been strictly managed by the provisions of specialized laws.

For example, when building a factory, in terms of land, the project is managed by the Law on Planning and Land related to land allocation, leasing, and bidding for land use rights. In addition, the project also needs to prepare an environmental impact assessment (EIA) report, environmental license, construction license, and fire prevention and fighting design approval. Therefore, Dr. Binh believes that in many cases, requesting investment policy from state agencies is unnecessary, causing the project to take several years to complete the procedures.

In fact, the reduction of administrative procedures and business conditions has been emphasized many times by the Government . However, in previous actions, the results have been reduced in quantity, but according to some businesses, it has arisen in other forms. For example, 2-3 procedures are combined into one, which means only a reduction in quantity but no change in nature, or licenses and business conditions have become complicated technical standards for businesses.

Therefore, the Director of Economica Vietnam recommends that in this reduction, quality is more important than quantity. "Enterprises are not too afraid of business conditions, what they are afraid of is the process and procedures to obtain those business conditions," said Dr. Binh. Some cases lack transparency, or complicated procedures, require many trips, and many conditions are almost "puzzles", causing difficulties for businesses. He added that the biggest factor that needs reform is that the implementation process must ensure efficiency, transparency, fairness, and not cause obstacles for businesses.

To increase transparency, MoMo's co-founder recommended increasing the transition to e-Government and increasing online transactions, which would also help reduce costs and time for businesses. He recommended that the "one-stop service" model be deployed more widely and effectively.

Phuc Sinh, an agricultural exporter to more than 100 countries, even recommends a "no-door" model for customs operations. "Having one door still has the potential to cause difficulties for businesses," said Mr. Thong. Representatives of MoMo and Phuc Sinh both proposed that inspections should be carried out randomly, prioritized automatically, and in the form of electronic inspections, with heavy penalties for violations.

To make this reduction of business conditions effective, the Director of Economica Vietnam proposed to define criteria for business conditions step by step. First, the business conditions set out need to be determined to be constitutional, in accordance with legal regulations, and consistent with the reform ideas set forth by the Politburo, the National Assembly, and the Government. Whether or not those conditions excessively restrict the freedom of business of enterprises and people, or carry the idea of ​​"if you can't manage it, then ban it".

Second, it is necessary to consider whether this method of management by business conditions is the best way, or whether there are better alternatives, such as market instruments.

Third, if the above business conditions are reasonable, the competent authority will continue to consider the reasonableness of the number of administrative procedures, the composition of the dossier, the procedural process, the possibility of digitization and transparency. In addition, the management agency needs to consider whether all procedures have been facilitated and whether the compliance costs are too high.

"By answering the above questions, the authorities will be able to determine which business conditions are really necessary to manage, and which conditions can use other management tools to create the most favorable conditions for people and businesses," said Dr. Binh.

(Source: Vnexpress)

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