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Only 5 ministries reviewed and provided plans on reducing business conditions.

According to the Ministry of Planning and Investment, the reform of provisions on business conditions aim to promote competitiveness and encourage business development has been the focus of the Government in recent years.

The Government promulgated Resolution No.83/ ND-CP dated 31st August 2017 and Resolution No. 98/ND-CP dated 3rd October 2017. Accordingly, the Prime Minister assigned ministries “to continue to review, evaluate and propose to abolish at least 1/3 to ½ of current business conditions in the management and administrative procedures which are causing difficulties and hindrances for investment and business activities of businesses”.

Implementing the task of reviewing and reducing business conditions, as of 22nd December 2017, only five ministries reviewed and provided plans on reducing and amending.

Specifically, the Ministry of Industry and Trade is the first ministry reviewing and providing a plan on reducing business conditions under its management. According to Decision No. 361a/QD–BCT dated 20th September 2017) issuing the plan on reducing and simplifying investment conditions under its management for 2017-2018, 675 of 1,216 investment and business conditions are expected to reduce (about 55%). The revised Draft Decree was submitted to the Prime Minister for approval.

The Ministry of Agricultural and Rural Development plans to propose to abolish and amend 118 article conditions (including 65 conditions abolished and 53 conditions amended) of 345 business conditions under its management, accounting for 34.2%. However, currently, the Ministry has not made a specific plan on amending these conditions.

Besides, the State bank proposes to maintain business conditions in the banking sector due to the specialized feature of credit institutions compared to other business types and high risk banking operations.

The Ministry of Planning and Investment also said that the Ministry of Construction has made significant efforts to reform the business environment in general and business conditions in particular. For example, it proposes to abolish 89 conditions (41.3%); simplify 94 conditions (43.7%); maintain 32 conditions (15%) of total 215 investment and business conditions under its State management.

The Ministry of Information and Communications has also reviewed business conditions, and proposed to reduce and amend 51 business conditions (reaching 16%), it has not made a specific plan on amending these conditions.

“For 10 other Ministries (including Finance, Health, Culture, Sport and Tourism, Education and Training, Science and Technology, Natural Resources and Environment, Labor-Invalids and Social Affairs, Public Security, National Defence and Justice), the Ministry of Planning and Investment has not yet received information on the review and proposal on the reduction or amendment of business conditions under their management,’’ reported by the Ministry of Planning and Investment.

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The results of reviewing the business conditions of the ministries show that the ministries are still confused in the discrimination of business conditions for the industry and specialized management of products and goods. Therefore, many conditions for specialized management of products and goods are stipulated as business conditions.

Although the provisions on general conditions (such as business registration certificates; requirements on fire prevention and fighting, environment, labor safety ...) are managed by agencies such as Planning and Investment, Police, Environment, Labor-Invalids and Social Affairs but these conditions are still managed by other ministries.

In addition, ministries still maintain unnecessary or unspecified business conditions.

Of the business conditions proposed to be abolished or amended, about 1/2 of the conditions are subject to amendment. Some revised conditions are only reworded and have not actually facilitated businesses.