Vietnam’s Ministry of Planning and Investment (MPI) is accelerating cutting business prerequisites in term of quality. In the first quarter of 2019 the Ministry proposed the removal of pre-requisites for 22 business lines and amending the requirements for 4 other businesses. The idea is to remove unnecessary and infeasible requirements and simplify complicated and unclear ones.
The MPI has recently published the draft amendments to the Law on Investment and the Law on Enterprise with the aim of creating a transparent business climate. The draft law said that prerequisites would be removed for business lines which did not have a direct impact on national defense, social security and safety, social ethics and community health, which are currently being managed by standards and where end-users can evaluate product quality and choose whether or not to use it. In addition, prerequisites would be removed for businesses supplying public products and services which can be selected and controlled via bidding.
The draft law also intends to create a mechanism to control the issuance of new business prerequisites or amendments to existing business prerequisites to ensure that the deregulation efforts truly benefits firms.
MPI is currently evaluating the quality of the deregulations of business prerequisites implemented in 2018 and its impacts on the operation of firms. Findings are expected to be reported in June. However, initial findings demonstrated that only around 30% of deregulation carried out at four ministries really helped businesses.
(Source: Vietnam News)