Cutting procedures to pave the way for jobs and investment

Chuyên gia Kinh tế, PGS.TS Ngô Trí Long - Hiệp hội Tư vấn Tài chính Việt Nam |

The Government has issued 8 resolutions amending and supplementing 163 legal normative documents in a synchronous manner, including 2 resolutions of the Government, 155 decrees and 6 decisions of the Prime Minister; and at the same time abolished 184 administrative procedures and 890 business conditions. The resolutions relate to the management scope of 14 ministries and ministerial-level agencies, from industry and trade, agriculture and environment, science and technology, education, health, police to finance, construction, justice, defense, internal affairs, diplomacy and the State Bank.

Those numbers are not dry. Each procedure being abolished reduces one trip, reduces one step of asking - waiting - supplementing dossiers. Each business condition being removed adds a part of development space for businesses, business households and people to have the right to do legal business. In the economy, procedures not only take time; they can slow down capital flows, slow down factory progress, slow down orders and finally slow down job opportunities. The noteworthy point is that this reform does not stop at a "paper review".

Administrative procedure reform must therefore be seen as a policy to promote growth and protect livelihoods. What businesses need is a system of procedures that is easy to understand, easy to do, easy to check responsibility, because informal costs are still a worrying issue.

Cutting 184 procedures and 890 business conditions is just the beginning. The final measure is not how many documents have been amended, but whether businesses spend less time, whether people have less travel, whether the project is implemented faster, whether officials have reduced the right to "hold records" and whether the market has more confidence. To do so, reform must go along with three requirements. One is to publicize the entire process, time limit, dossier components and handling responsibilities. Two is to digitize and interlink data so that people and businesses do not have to submit back and forth the information that the State already has. Three is to strictly control the emergence of new procedures; not to let the situation of "cutting one place, growing another" occur.

The most concerning thing is that the ultimate impact of administrative reform is directed towards workers. When procedures are shortened, businesses can expand production faster. When projects are removed, factories, construction sites, and industrial parks have more jobs. When business costs decrease, businesses have more room to invest in technology, improve wages and retain workers.

Cutting one procedure, therefore, is not just reducing one piece of paper. It is opening up another door for investment, jobs and development confidence.

Chuyên gia Kinh tế, PGS.TS Ngô Trí Long - Hiệp hội Tư vấn Tài chính Việt Nam
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