Sir, how do you assess the positive impacts of simplifying administrative procedures and abolishing unnecessary business conditions?
- This has a huge impact on businesses, especially small and medium enterprises (SMEs) - accounting for about 98% of the total number of businesses in Vietnam. Foreign-invested enterprises often face many difficulties in accessing policies, capital sources, and expanding markets due to barriers in administrative procedures. When the process is simplified, businesses will reduce the burden of compliance costs and waiting time, thereby focusing more on production and business activities.
Not only new businesses, but current businesses also benefit. In import and export, reducing specialized inspections and customs procedures helps shorten customs clearance time, saving thousands of billions of VND per year. A transparent and less barriers-on business environment will attract investment, creating conditions for foreign enterprises to access the Vietnamese market more easily. This promotes FDI inflows and opens up opportunities for international cooperation.
Vietnam is in a period of deep integration with a series of free trade agreements such as EVFTA, CPTPP, etc. If we do not reform in a timely manner, the investment environment will become a major barrier, making it difficult for Vietnamese enterprises to compete in the international market.
What difficulties are small and medium-sized enterprises facing regarding administrative procedures and business conditions in the production and business process, sir?
- According to statistics, to establish a new business, it takes an average of 16 days with many stages. Some conditional business lines such as construction, real estate, food, healthcare... still have to apply for many sub-licenses, causing time-consuming and incurring unnecessary costs.
Many employees and businesses have reported that the tax system still has many shortcomings. In particular, the tax declaration and payment process is complicated, requiring businesses to have a specialized accounting department. The electronic tax declaration system is not really synchronous, sometimes encountering technical errors that cause difficulties for businesses.
Import-export procedures still have many barriers. The clearance process was delayed due to having to carry out many inspection steps. High logistics costs due to long waiting time. Some regulations on quarantine and standards for goods are not consistent between ministries and branches, causing difficulties for businesses when importing raw materials or exporting products.
Foreign investors often have difficulty accessing loans due to strict bank regulations on mortgaged assets, credit history, etc. Although the Government has many support policies such as preferential credit packages, the approval process is still complicated, many businesses cannot access them...
What solutions do you have to help remove difficulties for small and medium-sized enterprises? What administrative procedures and business conditions should be abolished?
- Many current business lines require businesses to request too many licenses from different ministries and branches, leading to overlap, costly time and costs. It is necessary to review and only retain the licenses that are really necessary.
Integrating registration procedures, allowing businesses to carry out business registration, tax registration, and social insurance procedures on a common platform to save time. Shorten the time for processing documents, promote the application of technology to process documents more quickly, helping businesses go into operation earlier.
Simplify capital access conditions, loosen requirements for mortgaged assets. Foreign investors have difficulty borrowing capital due to not having enough collateral. There needs to be a credit assessment mechanism based on cash flow or business reputation.
Thank you!
