According to a report by the MPI submitted to the Government at the August 22nd legislative session, the ministry suggested removing 1,930 articles on business conditions.
Of these, it is proposed that all or a part of 302 financial conditions should be eliminated. Moreover, 85 conditions of locations, 1,336 conditions of production capacity, 127 conditions of business methods, 80 conditions of planning,... are proposed to be entirely abandoned.
The MPI has shown that currently, there are eight groups of business conditions and requirements, including: (1) To be organized under a certain legal form; (2) Human resources; (3) Production capacity; (4) The way to organize the working sites; (5) Minimum financial capability; (6) Planning; (7) To be trained by State agencies; (8) To be approved by State agencies.
"Compared to OECD (Organisation for Economic Co-operation and Development) standards, the institutional quality of business in Vietnam is still low," the MPI said.
Along with the removal of business conditions, the MPI proposed to change the business management methods to the OECD standards.
"To be more specific, we should replace the pre-inspection conditions with safety standards and technical regulations informed in clear, detailed guidance documents. This not only helps enterprises comply with the law but also ensures efficient State management," specified the report.
Meanwhile, Vietnam Chamber of Commerce and Industry (VCCI) recommended to remove 56 conditions and revise four conditions of five out of 28 conditional business sectors under the Ministry of Industry and Trade; remove 27 conditions and revise four conditions in 29 sectors under the Ministry of Transport; remove 13 conditions and revise five conditions in eight areas under the Ministry of Science and Technology.
In conclusion, Prime Minister asked ministries to revise and adjust unnecessary business conditions proactively. He also requested a draft decree or directive on controlling the conditions for business investment.