Need for smooth coordination in improving the business environment


Need for smooth coordination in improving the business environment
Deputy Minister of Planning and Investment Tran Duy Dong

Efforts to reform and improve the business environment, which are institutionalized in Resolution 02/NQ-CP of the Government, will be effective and sustainable non-financial solutions that will effectively support business recovery and development.

On January 10, the Government issued Resolution 02/NQ-CP on the main tasks and solutions to improve the business environment and enhance national competitiveness in 2022. How do you assess the necessity of this Resolution in the context of people and businesses being heavily impacted by the Covid-19 pandemic?

The business environment is an important pillar of institutional reform to create the most favorable conditions for enterprises of all economic sectors to develop.

Since 2014, the Ministry of Planning and Investment has advised the Government to annually issue a resolution on improving the business environment and enhancing national competitiveness. With the reform efforts of ministries, sectors and localities, Vietnam’s position in global rankings has risen, creating confidence for domestic and foreign investors and businesses.

However, the reform of the business environment in our country from 2020 tends to slow down due to the impact of the Covid-19 pandemic.

In global rankings, some improvement indicators have not been sustainable, and there are many specific indicators that Vietnam’s quality and ranking are still low or not improved.

In 2021 compared to 2020, many indicators decreased in rank, such as the Innovation decreased by two places (from 42nd to 44th); sustainable development points down (from 49th to 51st); property rights decreased (from 78th to 84th); perceived corruption decreased by eight places (from 96th to 104th).

Therefore, this term, the Government continues to issue Resolution No. 02/NQ-CP at the beginning of the new year as usual, clearly showing the message of continuing to promote reform and improve the investment and business environment; create confidence in the Government’s companionship with businesses.

The targets are assessed by businesses, individuals and organizations as appropriate, reflecting the essence of the reforms. We also believe that improving the business environment and enhancing competitiveness must be practical, which requires us to continue to approach international regulations and practices.

At the same time, we need to continue with stronger and more substantive reforms to support businesses to recover after the Covid-19 pandemic, and the Government’s Resolution 02/NQ/CP will be the driving force for the ministries, sectors and localities to have specific actions.

In addition, solutions to implement Resolution 02/NQ-CP need to be associated with solutions that the Government and National Assembly have recently issued such as Resolution No. 43, Resolution No. 11 of the Government on solutions to support the recovery of socio-economic development.

How do you evaluate the implementation of the relevant localities, ministries and branches of Resolution 02/NQ-CP?

Regarding the overall assessment, it can be seen that ministries, branches and localities are implementing very drastic measures, committing to implementing solutions to continue to improve the business environment and enhance competitiveness.

This is shown by the fact that as soon as Resolution 02/NQ-CP was issued, up to now, 24 of 26 ministries and agencies have issued Programs and Action Plans on implementing solutions to improve the business environment; including six ministries and agencies promulgating Action Plans integrated with the implementation of Resolution 01/NQ-CP on key tasks and solutions to implement the socio-economic development plan and budget estimates. Two ministries and agencies have no information (including the Ministry of Culture, Sports and Tourism; the Vietnam Federation of Trade and Industry).

Locally, 50 of 63 provinces and cities have sent Action Plans; in which, four localities issued Action Plans integrated with the implementation of Resolution 01; two localities have reported but have not received specific plans (Khanh Hoa, Quang Nam). The remaining 13 localities have no information, including Ba Ria-Vung Tau, Bac Lieu, Dong Nai, Ha Tinh, Hoa Binh, Hung Yen, Lai Chau, Long An, Quang Binh, Tay Ninh, Ho Chi Minh City, Tra Vinh and Vinh Long.

Thus, it can be seen that, from the formulation of the Action Plan, the determination of ministries, branches and localities has been shown.

However, the plan must be specific with solutions, tasks and reforms must go into substantive support for businesses and people for Resolution 02/NQ-CP to come to life.

Since then, there has been synchronization from ministries, branches and localities because one ministry or branch cannot implement all the tasks of improving the business environment but there are many related fields.

Therefore, we see that there is a need for active and substantive coordination among ministries, branches and localities in improving the business environment and enhancing competitiveness.

There is an opinion that the reform of the business environment and the enhancement of competitiveness has great resistance from the viewpoint of keeping interests in each agency, ministry, branch and locality. How will this hinder and make the implementation of Resolution 02/NQ-CP more difficult?

For substantive reform, there will be certain difficulties related to a number of ministries, branches and localities that still have ideas that have not been implemented drastically and are afraid to innovate.

But we think that the Prime Minister’s thought is very drastic, which is to accelerate the reform of the business investment environment through continuing to improve institutions, policies and laws in the spirit of reducing administrative procedures, creating the most favorable conditions for businesses and people.

At the same time, strengthen the decentralization of powers for localities in association with an effective monitoring and inspection mechanism. Therefore, we think that these are only initial obstacles, the Government apparatus and ministries and branches will have to follow the general direction of the Government and the Prime Minister in continuing to promote real reform.


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