What are the four points that the business community hailed the Government on last year and in early 2007?

First is the image of a dynamic government contributing to a growing Viet Nam. Recent policies, particularly economic policies, have been considered as in-line with the people’s and business community’s desires. The policies have also contributed to the continued promotion of the government’s operation.

Secondly, there is the image of a people’s government. Ministers have often appeared in the media talking to people and businesses about policies and policy-related matters. Last year was the first time the Prime Minister had an on-line chat with the public.

The third thing is the Government’s efforts in administrative reforms and fighting corruption.

And finally, the initial progress in decentralising central government to grass-roots governments. The decentralisation has helped develop the roles and responsibilities of the local government apparatus. It is focused on granting investment licences and investment management. The empowerment has created a competition among provinces and cities that have the motivation to improve economic operations and speed up administrative reform to create an attractive investing environment.

What are the most serious obstacles in Viet Nam’s business climate?

It is administrative procedures that cause businesses trouble and high expenses. The most troublesome procedures are related to market access, land and sub-licences.

A survey conducted by the VCCI this year in 6,700 businesses showed that a business registration took 22.7 days. More than 65 per cent of the businesses, most of which are small or medium-sized enterprises, said they would expand their activities if they had easy access to land funds. At present, land pricing is still improper and complicated. A business has to wait 131.8 days to get a land use right certificate.

Notably, sub-licences seem to be much more popular recently, as there are no regulations to supervise.

The chamber made a trial examination of 37 kinds of licences and found that 89 per cent of the examined licences had problems during the granting process.

What are the Vietnamese business community’s proposals to the Government to help the economy steadily and sustainably move into the future?

The Vietnamese business community wants the Government to push up transparency along with the predictability of the market and the fight against corruption.

The Government should ask ministries to publicise their regulations and policies relating to business activities.

Ministries must also consult businesses and business associations when issuing new business-related policies.

Moreover, a dialogue between businesses and State management bodies should be implemented.

It is necessary to mobilise all of society’s capital resources to develop infrastructure, especially in the context of cutting Official Development Assistance (ODA) loans granted to Viet Nam.

Source: Vietnam News.