Strong progress in administrative reforms

Administrative reforms have helped save time and money for businesses and people, ensuring transparency

Simpler is better

In 2017, administrative reforms were implemented in all fields, especially in terms of institutions, administrative procedures and state apparatus.

Ministries, sectors and localities continued implementing the Master Program on State Administration Reform in the 2011-2020 period and the State Administrative Reform Plan for the 2016-2020 period. Other developments include implementation of Government Resolution 19-2017/NQ-CP on enhancing national competitiveness and improving the business environment, and Resolution 35/NQ-CP on business support and development.

At a recent meeting on preparations for an online session between the government and localities, government officials said administrative reforms in major fields, such as taxation, customs, foreign trade, public debt management, securities, insurance, business registration and land, had been strengthened, significantly contributing to improving the business environment and national competitiveness.

Regarding institutional reforms, ministries and sectors submitted 20 laws and resolutions to the National Assembly for consideration and approval, and contributed opinions on nine draft laws. These include laws and resolutions pertaining to the investment and business environment, such as the Law on Support for Small and Medium-sized Enterprises, the Law on Technology Transfer (amended version), the law amending and supplementing some articles of the Law on Credit Institutions, the National Assembly Resolution on pilot treatment of bad debts at credit institutions, the Law on Foreign Trade Management, and the Competition Law (amended version).

In 2017, the government completed the issuance of decrees, decisions and circulars submitted by ministries and ministerial-level agencies under Prime Ministerial Decision 1078/QD-TTg. At the same time, the government provided guidance for ministries, sectors and localities to accelerate administrative reforms and promote public services.

Thousands of conditions and procedures that used to pose obstacles to business development have been abrogated or simplified. The MoIT proposed cutting/simplifying 55.5 percent of investment and business conditions. The Ministry of Construction proposed the abrogation of five sectors, cutting 41.3 percent of business conditions and simplifying 43.7 percent of business conditions. The Ministry of Agriculture and Rural Development proposed the abrogation/simplification of 118 business conditions (32.4 percent) of the total of 345 conditions in 33 sectors.

To improve state management, the government issued decrees stipulating functions and tasks of most ministries and sectors. The reorganization and equitization of state-owned enterprises, as well as the withdrawal of state capital, also yielded positive results.

MoIT breakthroughs

In 2017, the MoIT’s leadership for the 2016-2021 tenure provided guidance for restructuring the industry and trade sector. This included reorganizing the administrative apparatus and accelerating administrative reforms, including the abrogation of unsuitable business conditions, intensifying the application of information technology, and promoting public services, such as electricity, chemicals, food, domestic and foreign trade, market management, international economic integration, competition management, protection of consumer interests, and state management of public services.

The MoIT streamlined its management apparatus by reducing the number of member units from 35 to 30 in accordance with Government Decree 98/ND-CP that stipulates the functions, tasks, rights and organizational structure of the MoIT.

In 2017, Minister of Industry and Trade Tran Tuan Anh issued Decision 3610a/QD-BCT announcing the plan to cut/simplify business and investment conditions in fields of state management by the MoIT in 2017 and 2018. Under the decision, 675 business and investment conditions have been slashed, accounting for 55.5 percent of all conditions.

MoIT efforts significantly contributed to the achievement of 13 socioeconomic development targets set for 2017.

These achievements have been praised by domestic and international organizations. The World Economic Forum’s Global Competitiveness Report for 2017-2018 ranks Vietnam 55th among 137 economies worldwide, up five places compared with the 2016-2017 period. In terms of ease of doing business, the World Bank ranks Vietnam 68th among 190 countries and territories worldwide, up 14 places.

More importantly, the MoIT has contributed to creating a favorable investment and business environment and enhancing national competitiveness. Its administrative reform efforts have helped save time and money for businesses and people, ensuring transparency.