Aug 18, 2018 / 11:15

Taxation procedures prove the least pricey for businesses

Minister of Government Office Mai Tien Dung pointed out that a common point among the top three procedure groups of taxation, starting businesses and customs is the better application of online public services.

Vietnam's recent published index for administrative procedure compliance costs (APCI) shows that taxation procedures were the least pricey for businesses, costing only VND73,750 (US$3.17) per procedure, local media reported. 
 
Source: ACPI 2018 report.
Source: APCI 2018 report.
Additionally, the average time spent on a tax procedure is around 2.9 working hours, stated Minister and Chairman of the Government Office Mai Tien Dung at a conference releasing the report on August 17. 

Starting business and business registration procedures came in the second place with cost of VND720,700 (US$31) and 10.5 hours. 

According to Minister Dung, it was thanks to the government and provinces' efforts in creating favorable conditions for enterprises entering markets, for which all the business registration procedures can be processed online. 

The third place belongs to customs procedures with VND3.5 million (US$151) and 12 working hours. Customs agencies are implementing the National Single Window mechanism, aiming at modernizing and improving customs processes at international air and sea ports nationwide, along with establishing online public services, Dung added. 

At the bottom of the list are construction procedures with VND64.1 million (US$2,758), although the time needed to spend on each procedure of 108.9 hours is not the highest. 

Investment procedures are in the middle of the list with VND8 million (US$345.35) and 125 hours. Dung stressed the cost of this group will continue declining as the government is stepping up efforts in improving business and investment environments. 

Overall, Dung pointed out that a common point among the top three procedure groups of taxation, starting businesses and customs is the better application of online public services.

Dung expected in the coming time, the next APCI report will include an insight into unofficial expenses that enterprises would have to spend to approach state agencies. 

"It would be better if these expenses are cut off," Dung said.