Workshop promotes grass-roots units’ access to law

On July 4, 2017, Finance Minister Dinh Tien Dung signed Decision 1247/QD-BTC to launch the Action Programme for implementation of the Prime Minister’s Directive 26/CT-TTg dated June 6, 2017 and Resolution 35/NQ-CP on business development support in 2017, with a vision to 2020. Central solutions to be firmly carried out in the coming time will be administrative reform, business facilitation, business rights guarantee, and equal access to resources and business opportunities for enterprises. In tax and customs fields, the ministry will review, study and propose amendments and supplements to current regulations on tax and customs administration to match with those provided by other bodies to reduce the time and expense for enterprises. It will study to prevent tax loss while applying simple accounting regimes appropriate to small enterprises, especially those transformed from business households. It will try to make sure that specialised inspection is exercised on less than 20 per cent of export and import shipments, similar to that imposed by major trade partners of Vietnam. Implementation results will be submitted to the Prime Minister in the third quarter of 2017. The ministry will draft a decree on electronic invoices and records for basic implementation in 2018 for the whole economy; study and coordinate with Provincial/Municipal People's Committees to pilot electronic invoices and records with tax codes of tax authorities and connect information with retail outlets, with pilot to be first launched in Hanoi and Ho Chi Minh City in 2018. It will apply electronic VAT…... [read more]

NDO – At the second Vietnam Private Sector Forum (VPSF), held recently in Hanoi, representatives from many private companies directed a number of wholehearted ideas to the leaders of the Government, ministries and sector, asking for the construction of a favourable business climate, so that the private sector may further contribute to the cause of national socio-economic development. >>> Private sector vital to fuel economy: PM Currently, the private economic sector contributes 40% of the national gross domestic product (GDP), whilst attracting 85% of the country’s total labour force. The Party, State and Government have attached great importance and determination to improving the investment environment and strengthening the capabilities for private firms. The Resolution of the fifth plenum of the 12th Party Central Committee on the private sector has been issued, identifying the development of the private sector as a crucial motivation of the economy and targeting the elimination of any obstacles and prejudices to ensure the development of private businesses healthy and on track. The Government and specialised management agencies should develop more specific commitments, links and action programmes in order to help private firms to become more creative and dynamic, as well as to boost business production. In reality, there remain a lot of legal barriers combined with overlapping and ambiguous regulations, which have forced private firms to consume huge amounts of money and time. A recent business confidence survey has shown that 60% of businesses reported growth in revenues in 2016, while 67% of them are projected…... [read more]

Prime Minister Nguyen Xuan Phuc (second from left) shakes hands with a delegate at the second annual Vietnam Private Sector Forum held on Monday in Ha Noi. — VNA/VNS Photo Thong Nhat Prime Minister Nguyen Xuan Phuc urged private enterprises yesterday to expand their global reach, pledging to create favourable conditions for the development of the private sector as a major driver of economic growth. Phuc was speaking in Ha Noi at the second Viet Nam Private Sector Forum (VPSF), an initiative of the Viet Nam Young Entrepreneurs’ Association (VYEA) and the Mekong Business Initiative (MBI) of the Asia Development Bank (ADB). “It is vital to remove all the barriers and create conditions to boost the development of the private sector,” Phuc said. “The private sector should be encouraged to do what it does well. This is the right way for Viet Nam to follow in transforming the economic structure and encouraging innovation to exploit its potential.” Phuc said the private sector should contribute 60 per cent to the country’s gross domestic product (GDP), compard to 40 per cent at present. “As the Government is determined to be a constructive one, private enterprises must also keep innovating to improve their competitiveness and grasp opportunities,” Phuc stressed. “Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in…... [read more]

A farmer harvests rice by combine harvester (Source: VNA) Ninh Thuan (VNA) –The southern province of Ninh Thuan plans to invest 1.2 billion VND (52,800 USD) to encourage the use of technology and industrial equipment in farming in the locality. The sum will be used to implement 11 projects in different areas, including helping farmers purchase machines for farm produce processing, assisting rural firms to join trade fairs in other localities, improving management capacity and product quality and vocational training. According to the provincial Centre for Industry Encouraging and Trade Promotion, the province currently has more than 5,570 rural industrial production and trade facilities, including 179 companies and 5,391 household businesses, employing some 21,500 labourers. The majority of facilities are small scale, with the average capital of a company about 21.9 billion VND, while that of a household business is 70.4 million VND and 80 million VND for each cooperative. Their access to capital and new technology is limited and growth is slow. [Hi-tech agriculture rides strong wave of domestic investment] Director of the centre Vo Viet Hieu said that the centre will continue calling on businesses to replace outdated technology with modern and environmentaly-friendly models for greener production. At the same time, rural industrial facilities will receive advice on investment information to expand their business in line with the development strategy of each locality, he said. The province will also help the firms with administrative procedures, capital and land, while assisting them…... [read more]

A farmer harvests rice by combine harvester (Source: VNA) Ninh Thuan (VNA) –The southern province of Ninh Thuan plans to invest 1.2 billion VND (52,800 USD) to encourage the use of technology and industrial equipment in farming in the locality. The sum will be used to implement 11 projects in different areas, including helping farmers purchase machines for farm produce processing, assisting rural firms to join trade fairs in other localities, improving management capacity and product quality and vocational training. According to the provincial Centre for Industry Encouraging and Trade Promotion, the province currently has more than 5,570 rural industrial production and trade facilities, including 179 companies and 5,391 household businesses, employing some 21,500 labourers. The majority of facilities are small scale, with the average capital of a company about 21.9 billion VND, while that of a household business is 70.4 million VND and 80 million VND for each cooperative. Their access to capital and new technology is limited and growth is slow. [Hi-tech agriculture rides strong wave of domestic investment] Director of the centre Vo Viet Hieu said that the centre will continue calling on businesses to replace outdated technology with modern and environmentaly-friendly models for greener production. At the same time, rural industrial facilities will receive advice on investment information to expand their business in line with the development strategy of each locality, he said. The province will also help the firms with administrative procedures, capital and land, while assisting them…... [read more]

BIDV (the Bank for Investment & Development of Vietnam), VietinBank, Sacombank, MB and SHB all have subsidiaries or branches in the markets, while SBV has approved Vietcombank’s plans to set up a subsidiary in Laos.  Though Vietcombank entered the Lao market later than other banks, the investment capital is higher than other banks. The Laos-Vietnam Joint Venture Bank (LVB) set up by BIDV has charter capital of US$100 million, but BIDV only contributes 65% of the charter capital. Meanwhile, Sacombank Laos has charter capital of VND819 billion and SHB Laos US$50 million. A senior executive of Vietcombank said a Vietcombank subsidiary would open this year in Cambodia if administrative procedures can be fulfilled. Vietnamese banks still cannot succeed in Europe and the US because of the high competitiveness of the markets, which requires bankers to have powerful capability and prepare well for the operation.  The operation costs in the developed markets are very high compared with SE Asia. Analysts believe that more Vietnamese-invested banks would be set up in neighboring countries in the future because the operating banks there have been performing well. VietinBank Laos, after five years of operation, has one main office, one large-scale transaction office in Vientiane and one branch in Champasak.  The total assets of VietinBank Laos had reached US$222 million by December 31, 2016, an increase of 17% over 2015 and 435% over 2012. There was no bad debt. The bank made profit in…... [read more]

The results of the CEO Confidence Index (CEO.CI) survey, launched for the first time at the second Vietnam Private Sector Forum 2017 (VPSF), reported 58 out of 100 points, quite low compared to the expectations of investors and enterprises. VPSF 2017 will centre its activities around the survey results Among the survey index results, the figure expressing the evaluation of investors and enterprises of the Vietnamese business environment was 46 points. Besides, between 33-37 per cent of surveyed enterprises see advantages in their business sectors in Vietnam and 63 per cent admitted intentions to expand their operations in Vietnam in the next two years. 44 per cent of respondents lost opportunities for business operation due to legal barriers, including administrative procedures, tax policies, as well as difficulties in land access and capital arrangement. These are general barriers, but there are numerous specific problems in three key areas discussed at the forum, namely agriculture, tourism, and the digital economy. The negative results of the CEO.CI show the modern thinking of the young businessmen of the Vietnam Young Entrepreneurs’ Association (VYEA). They dare to speak the truth to look for solutions to improve the business environment in Vietnam. Notably, they proposed a list of short- and long-term solutions for each sector. These solution were collected from consecutive dialogs between the survey group and representatives of ministries, departments, and leaders of cities and provinces. The survey…... [read more]

Workers of the Long Viet Co Ltd in the southern province of Phu Yen’s Tuy Hoa City process cashew nuts for export. — VNA/VNS Photo Vu Sinh The Vietnam Cashew Association (VINACAS) has asked Government authorities to tackle obstacles in customs declaration procedure. A new regulation is causing hundreds of raw cashew material containers to pile up at the city’s ports. According to the association, many enterprises importing cashew materials for processing and re-export are facing the risk of demurrage/storage charge hike due to the Prime Minister’s Decision No 15/2017/QD-TTg on May 12 and the General Department of Vietnam Customs’ Document No 4824/TCHQ-GSQL. Under these documents, raw material importers must make customs declaration in the localities where their factories are based, such as Dong Nai or Binh Phuoc. However, plant quarantine must still be carried out at HCM City’s Customs Department. The city’s plant quarantine agency is not allowed to take samples for examination right after the goods arrive at HCM ports; instead it has to wait until procedures of goods declaration at the localities are completed. Therefore, to comply with the new regulation, each batch of goods has to be transported from HCM City to other cities/provinces for customs declaration, then back to HCM City for plant quarantine, and finally return to factories in the cities/provinces for production. Ta Quang Huyen, director of the Hoang Son I Co Ltd which is headquartered in the southern province of Binh…... [read more]

Multiple flyovers in Ho Chi Minh City designed to alleviate traffic in the southern metropolis are proving ineffective against the city’s growing congestion. Authorities in the southern metropolis are planning to construct more than 100 overpasses at local traffic hotspots by 2020 in a bid to reduce traffic jams, though many of the structures already put into operation have failed to meet expectations. Out of 13 flyovers built over the past five years, only those at Cay Go Roundabout in District 11 and the Nguyen Tri Phuong – 3/2 intersection in District 10 have shown positive results in minimizing gridlock in their respective areas. Four other overpasses in Binh Tan District have also played their part in reducing average commutes from 60 minutes to 20 minutes. Others construction projects, however, have fallen short of expectations, namely the flyover at Lang Cha Ca Roundabout in Tan Binh District near the entrance of Tan Son Nhat International Airport. Local residents still consider commuting through the traffic circle an agonizing journey complete with snail-paced traffic, heavy volumes of vehicle exhaust, and a high risk of traffic accidents. Despite the frequent intervention by traffic police, the area’s streets are still in chaos, said Nguyen Thanh Binh, who works near Lang Cha Ca. At Thu Duc Intersection located in the namesake district, a flyover only provides a smooth journey for vehicles traveling on the structure while surrounding streets such as Le Van Viet and Vo Van Ngan…... [read more]

NDO – The General Department of Vietnam Customs has set out specific goals for 2017, including efforts to reduce clearance time by 70 hours for exports and 90 hours for imports, whilst offering 100% public services online at level 3 or above, and 70% of the key sectors’ public services at level 4, the highest of the four online public service levels. The move is part of the customs sector’s efforts to implement Government Resolution No. 19-2017/NQ-CP dated February 6, 2017 on main tasks and measures to improve the country’s business environment and enhance national competitiveness in 2017, with orientations towards 2020. It is a tough challenge and requires huge efforts to realise the abovementioned targets, aiming to improve Vietnam’s ranking from 93rd position to below-82nd place in terms of clearance time for cross-border trade transactions (as rated by the World Bank) in 2017. Enhancing the quality of specialised inspection work over import and export goods is an immediate measure with considerable impacts for reducing clearance time, which should be taken into account by the customs sector. This step has received the most “criticism” from businesses due to its inadequacies leading to prolonged cargo clearance time. First of all, it is of urgent need to design and issue a full list of goods items under specialised inspection in orientation towards narrowing the scale of inspection, reducing the list of goods subject to inspection, detailing codes of dossiers and applying the principle of risk management in inspection work. The sector should…... [read more]




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