Sir, what is your assessment of the Government's determination to remove obstacles and improve the investment and business environment for businesses in recent times?
- The amendment of the Investment Law and the Bidding Law helps simplify procedures, increase transparency and attract private capital more effectively. The Investment Law and PPP Law are adjusted to attract private capital to participate in large projects, especially in the infrastructure sector, helping to optimize social resources. Meanwhile, the Law on Planning is amended in a more flexible direction, avoiding overlap, helping businesses have a clearer development orientation.
In addition, reforms in the financial sector, including adjustments to taxes, credit and capital mobilization mechanisms, also help businesses access resources more easily. This is especially important for small and medium-sized enterprises (SMEs), when they still face many difficulties in capital, credit guarantee and other financial procedures.
In addition to legal changes, the Government also demonstrates its determination through specific actions such as promoting the application of digital technology in administrative management, reforming business licensing processes, and promoting programs to support businesses to start up and innovate. The implementation of digital platforms helps businesses save time and costs, while increasing transparency in State management.
However, for reforms to truly be effective, implementation is still a key factor. The Government needs to closely monitor the implementation process in ministries, branches and localities, ensuring that the spirit of reform is implemented synchronously and consistently. At the same time, it is necessary to strengthen dialogue with the business community to promptly adjust policies that are not suitable to reality.
barriers to administrative procedures and the legal environment are still a big challenge for private enterprises. In your opinion, what solutions are needed to resolve the issue?
- Private enterprises are facing many barriers in administrative procedures and the legal environment. The average investment licensing period in Vietnam is 3-6 months, much longer than in countries in the region, such as Thailand with a duration of only about 1-2 months. Only 30% of employees can access loans from banks due to problems with mortgaged assets, while the remaining 70% must find unofficial capital with high interest rates.
According to the Association of Small and Medium Enterprises, there are more than 20 legal documents related to investment, land, tax, and labor that are not synchronous, causing difficulties in the implementation process.
To remove these barriers, one of the top solutions is to strongly reform administrative procedures. It is necessary to promote digitalization in business management and simplify the business licensing process. An important goal is to shorten the time for business registration to less than 5 days, instead of the current average of 10 days. Moreover, implementing the one-stop mechanism between ministries and branches is necessary to avoid overlap in project approval.
Regarding improving access to capital for businesses, it is necessary to expand credit guarantee funds for employees. Finally, the legal system also needs to be improved to ensure consistency. Reviewing and amending overlapping laws such as the Land Law and the Investment Law is very important to create consistency and avoid sub-licenses.
The Government will submit to the Central Government to issue a separate Resolution for the private economic sector, including 5 million business households, state-owned enterprises, as well as large-scale private enterprises with the ability to lead. How do you evaluate this Resolution?
- The Government's policy of submitting to the Central Government to issue a separate resolution for the private economic sector is an important step, demonstrating a strong commitment to promoting sustainable development of this economic sector, actively contributing to the national economy.
Firstly, the Resolution will create a more favorable business environment for the private economic sector. Reduce cumbersome administrative procedures, making it easier for businesses to access resources such as land, credit and technology. Promote digitalization in management, reduce compliance costs for businesses.
Second, better financial support and access to capital. The Resolution could provide a mechanism to expand credit guarantee funds, making it easier for businesses to access capital.
Third, promote the conversion from business households to formal enterprises. There are currently 5 million individual business households, but most have not converted to businesses due to concerns about taxes and legal procedures. If there are appropriate support policies, this conversion will help increase productivity and contribute more to the economy.
Thank you!
