|A view of Ho Chi Minh city
In December Party General Secretary and President Nguyen Phu Trong and Prime Minister Nguyen Xuan Phuc delivered speeches at a conference on implementing the government’s socio-economic plans for 2020. A government working group on law revision and a working group on institutional reform will be set up to help achieve this year’s development targets.
Economic institution reform will improve the business environment
Early this year the government working group met with ministries, sectors, and agencies to build tools and create a plan for reducing and simplifying business regulations from 2020 to 2025. They revised current regulations, which are seen as obstacles to production and trade, and avoid issuing new regulations that may increase business costs.
Specific targets include reducing by at least 20% documents issued by Ministries, the Prime Minister, and the Government and administrative fees for business activities.
Minister and Head of the Government Office Mai Tien Dung said “We expect to introduce the resolution on reducing unnecessary regulations by the middle of February.”
In 2019 the government issued specialized resolutions on business environment reform and business development. Vietnam’s business laws have changed to reflect a new management mindset and policy-making method. The National Database Web Portal shows that the number of ordinances issued last year was 270 much lower than the figures from 500 to 800 in previous years.
Key factors of economic efficiency
Vietnam’s efforts to improve business environment have paid off. Global Competitive Index jumped 10 steps to 67 last year.
Vietnam Chamber of Industry and Trade President Vu Tien Loc said, “Momentum for growth comes first from institutional reform. We expect that the Party and State will push ahead with institutional reform. VCCI will continue to be a driving force in this process. We have introduced a comprehensive program to fix policy overlaps, simplify business conditions and administrative procedures, and reform other sectors to create a favorable environment for business. We hope these moves will stimulate business growth.”
Vietnam will continue to strive for economic growth of 7% or more in 2020. Institutional reform is important for Vietnam to achieve its growth targets.