HCM City cuts back red tape

Administrative reform in all fields is at the top of the agenda for HCM City this year as it bids to attract more foreign investment and improve the business climate. 

Nguyen Thanh Phong, Chairman of HCM City's People's Committee, said the city would strictly comply with the Government Resolution 19 on administrative reform released last year. 

The resolution calls for reforms to reduce time-consuming and wasteful administrative procedures, enhance transparency and accountability at government offices, and adopt regulations in accordance with international rules. 

Another high priority is raising the city's business environment index, he said.

The city will also try to reduce the time needed to file taxes and increase the use of online tax applications to 95 percent of businesses. 

Value-added industries like tourism, finance and telecommunications will be priorities for the city as these fields are part of the national development programme. 


The city also aims to restructure more State-own businesses this year by adapting them to market economy principles. Preferential policies will also be created to stimulate private growth.

Special policies will also be established to level the playing field between large State-owned enterprises and small- to medium-sized enterprises. 

Firms would also be encouraged to pour more capital into research and development. 

HCM City also targets equitisation of a number of public services.

Reform plan 
A recently approved plan on State administrative reform from 2016-20 aims to improve institutions as well as personnel and administrative service quality. 

Under the plan, the General Programme on State Administrative Reform from 2011 to 2020 aims to ensure administrative reform-related objectives. 

The plan focuses on promoting institutional reforms, enhancing the quality of public servants and officials, renewing salary policies and improving the quality of administrative and public services, while settling shortcomings left from the implementation of the programme over the last five years. 

By 2020, the legal system is expected to be transparent, stable and accessible. 

The plan also targets simplification of administrative procedures and reducing costs on compliance in key areas, including import–export, investment, land, construction, house ownership, taxation, customs, health and market management. 

The plan is expected to hasten economic development, contribute to the country's competitiveness, and increase citizens' satisfaction rate about the settlement of administrative procedures (to over 80 percent by 2020).
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