The Finance sector continues cutting costs for businesses

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Continue the development of National Single Window, ASEAN Single Window and trade facilitation is one of the important tasks for 2019. Photo: Hong Nu.

Continuous and strong implementation

The key reform period began from 2014, especially in the fields of tax and customs, sharply reducing tax payment time and customs clearance time. According to statistics, for the customs sector, currently almost all (99.9%) declarations have been processed electronically. Clearance time for non-taxable shipments of Green channel is from 1-2 seconds. For the tax sector, more than 99.6% of enterprises implement electronic tax declaration and widely deploy the use of electronic invoices, etc. At the same time, the Ministry of Finance also seriously implemented the requirements on cutting business conditions (business registration) according to the Government’s policies. Besides, according to many leaders and experts, the Ministry of Finance is also the pioneer in the application of information technology, electronic transactions in many fields under its management such as tax and customs, bringing many practical benefits for businesses.

It can be seen that the spirit and level of administrative reforms of the Finance sector has always been maintained stably and effectively for many years, and always towards further reform in the coming time, according to the motto of satisfaction of citizens and businesses as a center and as a measure of administrative reform. These efforts of the Ministry of Finance have been appreciated by the business community, domestic and international organizations.

Mr. Vu Tien Loc - Chairman of Vietnam Chamber of Commerce and Industry (VCCI) shared that if considering the impact of administrative reforms, reduction and simplification of business conditions of ministries and sectors on the business community, the Ministry of Finance is always the number one for its great influence. For example, if tax administrative procedures are reformed, business conditions in the tax field are cut and simplified, there is a certainty that there will be a very large number of beneficiaries, including nearly 700,000 businesses in official operation and more than 5 million business households and many other taxpayers. Or, customs administrative procedures reform, reduction and simplification of business conditions in the Customs field will affect nearly 200% of Vietnam's GDP because currently Vietnam's import-export turnover accounts for more than 170% of GDP ...

Mr. Loc added, the reform efforts of the Finance sector have contributed to reducing significant costs for businesses. According to VCCI, the costs for the Ministry of Finance's administrative procedures have decreased by 80%. The most obvious expression is that the Prime Minister's Advisory Council for Administrative Procedure Reforms has recently announced that tax and customs groups are two of the top three groups in terms of lowest compliance costs.

For the national competitiveness, the Finance sector’s reforms have also had positive effects. In recent years, Vietnam's rank in the Doing Business Rankings has made significant progress, currently Vietnam is ranked 69th among 190 economies. This is due to the important contribution of tax and customs administrative reforms of the Finance sector. The World Bank's World Business Doing Report also noted that the tax payment index has been evaluated for many consecutive years to have the most positive impact on Vietnam's general business environment.

Specific roadmap

2019 is no exception. Right from the beginning of the year, the Ministry of Finance issued Decision No. 2451 / QD-BTC on the plan for realizing Government’s Resolution No. 139 / NQ-CP on the Action Plan to cut costs for businesses. In particular, the Ministry of Finance set out 19 specific tasks such as: Continuing the task of reducing and simplifying business investment conditions under the Government’s Resolution No. 01 / NQ-CP dated January 1st, 2018, in compliance with Article 7 of the 2014 Investment Law; reviewing and amending technical regulations towards not stipulating contents of business conditions; presiding over and encouraging ministries and sectors to fully develop and join the National Single Window, ASEAN Single Window and trade facilitation, and report to the Prime Minister every 6 months on performance progress and necessary solutions to carry out this task.

In order to cut costs for businesses, Ministry of Finance will apply electronic invoices in accordance with the Government's Decree at the toll plazas of BOT projects and connect electronically between toll plazas and tax agencies under its roadmap; will share information with the Ministry of Transport if necessary to negotiate with investors, which is as a basis for research of new projects.

The group of tasks related to inspection and examination is also noted, including increasing the responsibilities of heads and civil servants in charge of public duties. Accordingly, the competent units will continue to strengthen inspection and examination of public duty performance, promptly reorganize and strictly handle units and individuals who commit harassment and troubles, burdening enterprises; set ethical rules in public duty performance of cadres and civil servants for people and businesses.

Ministry of Finance issues a plan to cut costs for enterprises VCN - The Ministry of Finance has issued a plan to implement the Government's Resolution No. 139 ...

This plan will help the Finance sector to successfully implement one of nine key task groups for 2019 which was emphasized by Minister Dinh Tien Dung: Promoting strong administrative reform and modernization, cutting administrative procedures and business conditions in the Financial sector, with a focus on tax, customs and state treasury, contributing to further improving the business environment, developing businesses, encouraging start-ups and better serving people and businesses.