Cutting down business conditions of labour industry: “backward in reform” and “systemised in implementation”

More categories, less cuts

On December 4, in Hanoi, the Central Institute for Economic Management (CIEM) held a workshop on business conditions, specialised management and inspection in the field of labour: Some issues and requirements of reform.

Speaking at the seminar, Dr. Nguyen Dinh Cung, former Director of CIEM, said reforming and improving the quality of regulations on business investment conditions and specialised management and inspection reforms have been a priority of the Government in recent years (as defined in Resolution No. 19 and Resolution No. 02 of the Government on improving the business environment and improving national competitiveness). Following the directions of the Government, the ministries and sectors have reviewed, issued or submitted to the Government for promulgation many documents on business conditions, specialised management and inspection. However, the facts showed there was still inadequate content, creating barriers for businesses.

Evaluating the reduction of business conditions in the field of labour, Nguyen Minh Thao, Director of Business Environment and Competitiveness (CIEM) said the reform and reduction of business conditions in the field of labour is mainly in the form of reducing the number of staff or reducing the size requirements of facilities, and less cutting of business conditions.

From the perspective of representatives of businesses, Dau Anh Tuan, Director of Legal Department, Vietnam Chamber of Commerce and Industry said the list of goods subject to inspection belongs to the field of the Ministry of Labour, War Invalids and Social Affairs is too much. They just need to focus on testing goods that have high risk of being unsafe or being used for public purpose, such as removing small volume and pressure devices, removing devices for internal use which are not used for the community. In the future, it is necessary to review goods to be cut down based on the history of accidents and damage, the damage must be compared to inspection cost for the entire product. Or based on the history of testing, considering the rate of failure results.

Reduction of business conditions in the field of labour was still systemised. Source: Internet

Too hard to comply

Providing more detail about some of the regulations and inspection procedures that caused confusion and damage to enterprises, Tuan cited the regulations on the process of testing compressed air cylinders. It regulated that checking the inside of the compressed air when it is impossible to get inside the gas tank to check.

Or testing variable refrigerant volume (VRV) for the building, it is required to withdraw all solvents to comply with right method, the building must turn off air conditioners and ventilation for 3-5 days, causing a big cost to the business.

On these shortcomings, Nguyen Dinh Cung also stated that compliance with Vietnam’s law was a big challenge and the question should be asked why US and European businesses rarely come to Vietnam. The reason was that it was really hard for them to comply with the law.

Currently, specialised management and inspection are slowly reformed in the field of labour, even there are provisions is "backward", many newly documents are promulgated to cause difficulties for businesses. Regulations on training in occupational safety and sanitation were systemised, causing cost in terms of time and cash for businesses.

“Therefore, in the future, it is necessary to continue abolishing and reforming substantially the regulations on business conditions. At the same time, unifying the focal point of labour safety management; cutting down the list of items subject to specialized management and inspection under the Prime Minister's direction. In addition, conducting inspection of labour safety for goods at risk of causing unsafe before being put into operation and circulation instead of conducting in pre-clearance stage, reforming regulations and enforcement of the training on occupational safety and healthy,” Cung stressed.