Illustrative image (Source: VNA) The Mekong Delta provinces of Dong Thap, Long An, Ben Tremade considerable progresses in the index.
Business community lauded reform efforts made by provincesof Binh Duong, Quang Nam, Vinh Long, Ho Chi Minh City and particularly Hanoi.
Hanoi was for the first time named among the top 10 citiesand provinces in terms of governance quality and business-friendly environment,a step closer to the goal of becoming a top competitive city in ASEAN in thenear future.
Head of the Vietnam Chamber of Commerce and Industry(VCCI)’s Department of Legal Affairs Dau Anh Tuan said unofficial costs,especially petty corruption, have decreased significantly while businessenvironment has become fairer. Efforts in administrative reform andanti-corruption proved effective with reduction in overlapping inspections andauthorities of localities becoming more active and creative.
Tuan said firms’ optimism over business environment remainshigh. Up to 49.3 percent of surveyed enterprises said they will expand theiroperations, 42.4 percent will maintain the current scale while only 8.3 percentwill scale down or shut down operations.
However, he admitted that 58 percent of domestic businessesstill face bureaucracy, and 40 percent said provinces still prioritise Stateand foreign-invested firms over private ones. Around 30 percent said they stillmeet difficulties in applying for business certificates and other licences inline with regulations.
Administrative procedures remain burdensome, especially thoserelated to land, taxation, social insurance, market management and transportation.Transparency does not improve much while workforce quality and corporatesupport services are limited, he said.
Prof. Edmund Malesky from the US’s Duke University, head ofthe PCI building group, said while Vietnam aims to enhance the linkage betweendomestic and FDI enterprises, domestic firms have yet to participate deeply in theglobal value. He noted a problem that firms lack trust in courts and conflictsettlement mechanisms in Vietnam.
Chairman of the Quang Ninh provincial People’s CommitteeNguyen Duc Long said the province was able to keep the top position thanks todrastic reform efforts.
The province has built an independent investment promotionagency in support of investors, held dialogues between businesspeople andauthorities, and launched the district and department competitiveness index, hesaid.
The northern coastal province has an automatic customs monitoring system and has digitalised many administrative procedures.
It has simplified procedures related to business registration and construction licensing, reducing time and money for enterprises.
These efforts have helped reduce time of customs clearance for imported goods to only 24 hours instead of 39 hours as previously.
Meanwhile, the time for individuals and organisarions to complete procedures to start business is six days, a cut of three quarters of the time compared with regulations in Government Resolution 19. Meanwhile, the time for granting construction permits is no more than 52 days, 68 days less than regulations in Government Resolution 19.
Thanks to the locality’s efforts to cut time spent processing administrative procedures, the locality’s investment environment has improved remarkably.
In 2018, Quang Ninh granted and adjusted investment licences for 50 projects with total registered capital of more than 23.6 trillion VND (over 1 billion USD).
As many as 67.6 trillion VND was poured into the province in the year, including key infrastructure projects such as Ha Long - Hai Phong and Ha Long - Van Don expressways, Van Don International Air⛦port, Hon Gai international port and FLC Ha Long Bay Golf Club and luxury Resort, greatly contributing to the province’s development.-VNA
