Econ
“Many business conditions are for the benefit of administrative agencies”
Recommendation from the Prime Minister’s economic consulting team on applying OECD (Organization for Economic Cooperation and Development) standard as the guideline to remove ineffective business conditions.
Recently, the Government has requested related agencies to review business conditions in accordance with OECD’s market principles, with a view to remove conditions hindering competition conditions. This is the main task of Ministry of Planning & Investment, which is expected to report to the Government before December 2017.
OECD includes developed countries such as United States, Canada and western European countries.
According to Dr. Vu Thanh Tu Anh (Fulbright University), member of the Prime Minister’s economic consulting team, OECD has set the standards for the quality of legal documents and is being applied in developed countries. This will become a guideline for Vietnam to remove unreasonable business conditions, which are damaging the business environment. “In Vietnam, there are many business conditions aimed to protect the benefit of administrative agencies hindering enterprises, which cause them difficulties in accessing markets. However, we do not have any set of principle to consider which business condition to remove or not. In our situation, OECD standard is the instruments to support Vietnam in dealing with sub-licenses and unnecessary business conditions. If the OECD principle is strictly followed, I think we can reduce more than 60% current business conditions” – Dr. Vu Thanh Tu Anh said.
“In the current situation, applying OCED standard is necessary to support Vietnam quickly removing unnecessary business conditions. Sooner or later, Vietnam will have to apply quality standard and guidelines during this process. As such, OECD standard will create a good practice in removing business conditions” – Dr. Vu Thanh Tu Anh continued.
Prof. Nguyen Duc Khuong, Economic Institute IPAG (France) – member of the Prime Minister’s consulting team said the OECD standard’s reference is necessary. OECD will help Vietnam gaining “know-how” from many countries to push forward with transparency and development. Therefore, it is necessary to adopt a long term and consistent reform from all ministries and agencies to ensure efficiency. This effort would require a special mission with the participation from ministries, agencies, Vietnam Chamber of Commerce and Industry (VCCI), representatives from Associations, leading enterprises in the economy. A process of serious review, evaluation and learning will help proposing specific reform actions.
“As far as I know, OECD will propose instruction documents to overcome barriers, with a view to develop simplified strategy for administrative reform” – Prof. Vu Duong Khuong said. This strategy is aimed to remove 22 categories of barriers coming from the complexity of legal documents and bureaucracy; related expenses with regard to license issuance and reporting as required.
According to lawyer Tran Huu Huynh, Chairman of Vietnam International Arbitration Center (VIAC), removing sub-licenses are a long, hard fight, which requires the determination from all level of agencies. “However, I have not seen the effort from agencies. During review mission, there were no one from the Ministries and agencies taking part in conferences and workshops”. Mr. Huynh said.
For example, recently, the review and survey on business conditions are mainly done by institutes and organizations such as VCCI and Central Institute for Economic Management (CIEM). “The fight against business conditions must come from all fronts: the government, enterprises, associations and customers. If one of the related party only concern about its own benefit, this fight will never see the end” – Mr. Huynh said.
OECD includes developed countries such as United States, Canada and western European countries.
Dr. Vu Thanh Tu Anh: OECD standard is the guideline to remove ineffective business conditions.
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“In the current situation, applying OCED standard is necessary to support Vietnam quickly removing unnecessary business conditions. Sooner or later, Vietnam will have to apply quality standard and guidelines during this process. As such, OECD standard will create a good practice in removing business conditions” – Dr. Vu Thanh Tu Anh continued.
Prof. Nguyen Duc Khuong, Economic Institute IPAG (France) – member of the Prime Minister’s consulting team said the OECD standard’s reference is necessary. OECD will help Vietnam gaining “know-how” from many countries to push forward with transparency and development. Therefore, it is necessary to adopt a long term and consistent reform from all ministries and agencies to ensure efficiency. This effort would require a special mission with the participation from ministries, agencies, Vietnam Chamber of Commerce and Industry (VCCI), representatives from Associations, leading enterprises in the economy. A process of serious review, evaluation and learning will help proposing specific reform actions.
“As far as I know, OECD will propose instruction documents to overcome barriers, with a view to develop simplified strategy for administrative reform” – Prof. Vu Duong Khuong said. This strategy is aimed to remove 22 categories of barriers coming from the complexity of legal documents and bureaucracy; related expenses with regard to license issuance and reporting as required.
According to lawyer Tran Huu Huynh, Chairman of Vietnam International Arbitration Center (VIAC), removing sub-licenses are a long, hard fight, which requires the determination from all level of agencies. “However, I have not seen the effort from agencies. During review mission, there were no one from the Ministries and agencies taking part in conferences and workshops”. Mr. Huynh said.
For example, recently, the review and survey on business conditions are mainly done by institutes and organizations such as VCCI and Central Institute for Economic Management (CIEM). “The fight against business conditions must come from all fronts: the government, enterprises, associations and customers. If one of the related party only concern about its own benefit, this fight will never see the end” – Mr. Huynh said.
