Red tape cuts planned to improve business, investment environment

10:19 | 23/04/2018 Investment

(VEN) - After four years of implementing Prime Ministerial Resolution 19/NQ-CP on improving the business and investment environment and enhancing national competitiveness, trust by the market and business has improved. However, the pace of implementation is still uneven across the country, with some localities moving very slowly.

red tape cuts planned to improve business investment environment
Administrative procedures have been cut to create favorable conditions for businesses

Improved results

Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), said Vietnam’s efforts to improve the business and investment environment have yielded remarkable results. In 2017, the World Economic Forum’s global competitiveness list ranked Vietnam 55th overall, up five places from the previous year, while the country ranked 47th out of 127 economies in the Global Innovation Index 2017, climbing 12 places compared to the previous year.

He added that Resolution 19 has made positive, tangible impact on business activities across ministries, departments and localities throughout the country. The Ministry of Industry and Trade took the lead in implementing the directive by abolishing 675 investment and business conditions, equivalent to 55.5 percent of the total procedures.

However, along with these significant results, the pace of implementation is still uneven across the country. Moreover, the results achieved are still far from the targets. Vietnam has yet to reach the average ranking of the ASEAN-4 countries, and the number of abolished business conditions is still lower than the target.

2018 goals

Catherine Kadennyeka Masinde, a World Bank representative, suggested Vietnam raise awareness among organizations and individuals of their responsibility for implementing the resolution.

Nguyen Dinh Cung said that the 2018 draft resolution will set higher goals, with a focus on abolishing at least one-third to half of the current business conditions in all sectors. It will also call for reducing the number of goods subject to specialized inspection to 10 percent, enhancing the competitiveness of the tourism sector, and reducing logistics costs to around 18 percent of the country’s gross domestic product (GDP).

To achieve these goals, further efforts are needed by all ministries, departments and localities, given that many countries in the region and the world are also trying to improve their business and investment environment.

Nguyen Dinh Cung, director of the CIEM, said that to achieve the goals set out in Resolution 19-2018/NQ-CP, the government should direct ministries and departments to implement institutional reforms in a consistent manner.

Nguyen Hoa