PM demands removal of obstacles to production, business

Prime Minister Nguyen Xuan Phuc on April 25 requested to create favourable conditions for production and business activities. 

The PM told this in the government’s first meeting in Hanoi discussing solutions resolving existing problems concerning the Law on Business and the Law on Investment since they took effect in July 1, 2015. 

He instructed ministries, sectors and localities to attach the implementation of the two laws with the 19/CP on improving the business climate and national competitiveness. 

According to the Minister of Planning and Investment Nguyen Chi Dung, the two laws have begun producing positive effects evidenced by the cut in time in handling dossiers on the registration of new businesses to less three days. 

The minister said the Provincial Competitiveness Index (PCI) 2015 showed the remarkable improvement in the aspect of business registration and the World Bank appreciated the entrepreneurship and protection of investors in the two laws. 

Those results show the business climate has improved right after the Law on Business and the Law on Investment took effect, said the minister. 

He also points out shortcomings and occurring problems during the implementation of the two laws. 

Those problems are the difference and incompatibility between regulations in the Law on Investment, Decree 118/2015/ND-CP and other laws and relevant legal documents in handling investment procedures. 

The second problem is to collect, review and reform regulations on investment and business conditions in line with requirements in the Law on Investment. 

Other problems occur in the time-consuming handling of procedures, approval of investment in principle, registration of an investment project and business registration lead to more dossiers, documents, even more administrative procedures which are not necessary. 

According to the Ministry of Planning and Investment, relevant ministries have not collected and published regulations on investment and business conditions on the national information portal on businesses, in line with the Law on Investment. 

The slow implementation of drafting documents concerning investment and business conditions replacing circulars and decisions of ministries which expired since July 1, 2015 caused difficulties for putting the law into practice. Ministries have yet to publicise investment and business conditions for 15 out of 16 conditional business sectors. 

According to members of the government, the urgent task is to issue documents with detailed regulations and guidelines for the two laws, and the need to apply the method of building and issuing documents that can allow the use of a decree to amend many decrees.
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