10:09 | 30/09/2016 MUTRAP Corner
The industry and trade area is considered very important to the economy, covering more than 10% of the total 267 sectors subject to conditions (equivalent to 28 sectors). Currently, the Ministry of Industry and Trade (MOIT) is managing and controlling 447 administrative procedures at central to local levels. Thus, administrative regulations and procedures in the trade and industry area have significant impacts on improvement of the investment and business environment in general.
On September 27 and 29, 2016 in Hanoi and Ho Chi Minh City respectively, the workshop entitled “Dialogue with individuals and organizations on administrative regulations and procedures in trade and industry related areas” was held under the collaboration between MOIT and EU-MUTRAP Project. This is an annual event for open exchange between the business community and MOIT about MOIT’s regulations, especially conditions for business and investment and administrative procedures.
Deputy Minister of Industry and Trade Tran Quoc Khanh chaired the event, with the participation of leaders of MOIT’s units in charge of administrative procedures and conditional sectors. It welcomed hundreds of participants coming from enterprises, associations, local State management agencies under MOIT.
At the workshop, the representative of the Legal Affairs Department (MOIT) revealed that the number of administrative procedures for 28 conditional sectors doubled the average number of administrative procedures under the management of other Ministries. As calculated, MOIT’s reduction of cost for administrative procedures saved more than 4.3 billion VND per year of the average time cost, not to mention opportunity cost.
Objectives of the reform of administrative procedures include simplification, transparency, modernization and standardization. To realize these objectives, MOIT has taken a lot of measures to control administrative procedures, one of which is regular collection of opinions from people and enterprises.
In 2016, MOIT has repealed 6 administrative procedures and simplified 33 procedures in e-commerce, chemicals, wines, energy, food safety sectors, etc. Typically in the power sector, MOIT proposed to decrease electricity access time from 132 days to 33-41 days. Compared to the average electricity access time of 50.3 days in 6 top countries in ASEAN, that in Vietnam is much lower. Though the task of control of industry and trade related administrative procedures has gained certain achievements, MOIT representative admitted that difficulties, problems still existed in relation to regulations, particularly regulations on conditions for business and investment and administrative procedures. Making the Government’s joint efforts to improve business & investment climate, MOIT will keep listening, collecting opinions from the business community to make recommendations for amendments of legal regulations on State management of the industry and trade area. Specially, prior to the dialogue, MOIT Minister required synthesis, review and plans of resolving difficulties and problems encountered by businesses, regarding this task is an urgent and important one.
MOIT will continue to review and propose solutions to the Government for the improvement of a synchronized market economy on the basis of compliance with economic rules and for the remove of institutional knots distorting the market. These solutions are also aimed at creating a fair playing field for businesses, ensuring competition, simplifying procedures toward protection of consumer rights.
The ministry will also review and submit its proposals to the Government to resolve gas trading businesses’ problems with Decree No. 19, to consider to repeal requirements of certificates for chemicals and automobiles sector in Circular No. 20. The Ministry will also cooperate with Vietnam Textile & Apparel Association to solve problems in textile sample test as prescribed in Circular 37. At the moment, the legal affairs department is in process of collecting opinions and development of the draft in order to issue the draft as soon as possible, tentatively in October.
At the workshop, MOIT representatives well noted and were very receptive to opinions and comments by the business community. These opinions will be reported to MOIT leaders for solutions.