Workers assemble cars at Hyundai Thanh Cong Factory (Photo: VNA)Hanoi (VNA) – The Ministry of Planning andInvestment recently proposed the Prime Minister abolish nearly 2,000 businessrequirements and conditions, a move to help improve the business climate andthe economy’s competitiveness.
The ministry asked for complete or partialabolition of 302 financial conditions, and complete abrogation of 85 conditionson location and another 1,336 on production capacity.
It also called for all conditions on manpower,except for some professions that need high qualifications and experience likehealth care and accounting, 127 conditions on mode of business and 80conditions on planning to be repealed.
At a recent workshop on the issue, Director ofthe Central Institute for Economic Management (CIEM) Nguyen Dinh Cung saidthere remain a number of problems in regulations on business conditions,undermining the competitiveness of businesses as well as the whole economy.Business conditions are creating irrational barriers to investment and marketentry, hindering the establishment of new firms, and discouraging existingenterprises.
[Excess preconditions drag economy]
Unreasonable business conditions are also onereason behind the shutdown or operation suspension of many companies, he said,adding that many potential investors have given up their business intentionafter learning about business conditions, which usually require large groundand infrastructure, many certificates and much experience.
Dang Quang Vinh from CIEM’s business environmentand competitiveness division pointed out unreasonable official costs, addingthat unofficial costs can occur in any business stages and during the entirelaw enforcement process.
CIEM Deputy Director Nguyen Thi Tue Anh saidbusinesses have had to spend on too many expenses which have hampered theiroperations. Utmost efforts are needed to reduce costs for them.-VNA
VNA
