New Resolution on Improving Business Environment and National Competitiveness in 2016-2017

25
May
2016

On 30 March 2015, an update was issued on the key duties and solutions for improving business environment and national competitiveness in 2015 and 2016 specified in Resolution 19/NQ-CP/2015 (“Resolution 19/2015”). On 28 April 2016, the Government issued a new resolution No. 19-2016/NQ-CP (“Resolution 19/2016”) to review the achievements of Resolution 19/2015 and set out new targets for the two years 2016-2017 with orientation to year 2020. We set out below the main highlights.

 MAIN OBJECTIVES AND TARGETS FOR VIETNAM IN 2017-2020

According to Resolution 19/2016, although Vietnam’s business investment environment and competitive capability has improved, some items have not achieved the criteria required under Resolution 19/2015 such as construction permit issuance, real property ownership registration, export and import procedures, and bankruptcy procedure. Consequently, the purpose of the Resolution 19/2016 is to target for Vietnam to achieve (i) the average of the ASEAN-4 countries on a number of the competiveness indicators under the effective improvement index by the end of 2017, and (ii) the average of ASEAN-3 countries on a number of indicators of international practice by 2020. We set out below the indices in comparison with those as specified in Resolution 19/2015:

 New Targets for 2017

Particulars2017 Targets
Effectiveness of Competition PolicyTop 50 Country Level
Limiting Non-Tariff BarriersTop 40 Country Level
Guaranteed Flexible Wage IndexTop 60 Country Level
Ability to Retain and Attract TalentTop 40 Country Level

 New Targets for 2020

Particulars2020 Targets
Custom Clearance for cross-border Goods for ImportLess than 41 hrs
Custom Clearance for cross-border Goods for ExportLess than 36 hrs
Access to Medium Voltage Electricity MainsLess than 33 days

 

ParticularsTargets
20162020
Tax Payment168 hrs/year110 hrs/year
Social Insurance Payment168 hrs/year45 hrs/year
Business EstablishmentTop 60 Country LevelTop 40 Country Level
Bankruptcy Procedures60 mths → 30 mthsMax. 20 mths
Resolution of Commercial/Contract Disputes400 days (within 60 mths) → 200 days (within 24 mths)Less than 200 days
Investor ProtectionTop 50 Country LevelTop 30 Country Level
Construction Permit Issuance77 daysLess than 70 days
Real Property Ownership Registration57 days → 14 daysLess than 10 days
Credit AccessTop 30 Country LevelTop 30 Country Level

 

AGENCIES IN CHARGE AND THEIR MAIN TASKS AND SOLUTIONS

In order to achieve the above targets, the Government requires the involvement of most of the ministries, Vietnam Social Insurance, the People’s Committees of provinces and cities, and the different Business and Professional Associations. The highlighted tasks and solutions for the time from 2017 to 2020 are changed as follows:

  • co-ordinating regime on resolving procedures for registration of investment and business; especially to formulate Decrees on business conditions in accordance with the 2014 Law on Investment and to create consistency and uniformity of all procedures relating to investment, enterprise, land, construction, tendering and environment;
  • simplifying the procedures for declaration of social insurance and medical health insurance revenue and expenses, inspection of the food safety and on quarantine of imports, and issuance of construction permits;
  • making a submission to the National Assembly on a draft Law to amend the Law on Competition before December 2017; and
  • publicizing the database on tax refunds and completing the two systems being Vietnam Automated Cargo and Port Consolidated System and Vietnam Customs Intelligence Information System for the customs procedures.

Please contact Lien Nguyen, Duong Nguyen or Jamie Loo for more information on this update.