“It is increasingly difficult for businesses to shoulder the burden of extra costs while business freedom is being tightened,” according to Nguyen Khac Hieu, Director of AZ Art., JSC.
TheLEADER had a talk with Nguyen Khac Hieu, Director of AZ Art., JSC on this issue.
As an enterprise in the textile sector, can you share some difficulties when applying for sub-licenses?
Nguyen Khac Hieu: To be exported, with the garment industry, the company must apply for a quality accreditation and customs clearance procedures. If dutifully following the process, enterprises will have to face innumerable difficulties as the quality inspection process takes more than a week, the application for customs clearance papers and the certificate of origin takes 3-5 days more. The procedures are complicated and related to many agencies.
If the export goods are discovered to have something not exactly identical to what the business stated, it will be very complex. However, businesses still have the experience in avoiding this complexity by using professional paperwork services.
Also, the company usually plans not to affect the progress of delivery to partners. As a result, we do not suffer as much as enterprises in the food sector. Fresh items after waiting for all kinds of permits will easily become a risk for businesses.
Of course, enterprises have to shoulder a lot of extra costs. They will indeed inhibit the profitability of the firm, increase the cost of the product and reduce the competitiveness of businesses.
Can you tell us what difficulties of business conditions have been causing for enterprises?
Nguyen Khac Hieu: Obstructive sub-licenses limit business freedom. Why do regulators not list the necessary sub-licenses right in the business license? It is unreasonable for an enterprise to have a business license but still have to apply for sub-licenses.
To develop the country, we should promote all aspects of business in general and the private sector in particular, rather than obstructing them as the way that ministries are doing.
Hence, I think that the proposal of the Ministry of Planning and Investment to eliminate nearly 2,000 sub-licenses is a very welcome movement, which creates a great motivation for businesses. As every enterprise has its opportunity, the national economy will be much more dynamic.
Previously, since 2001, the process of eliminating sub-licenses has gradually been set. However, after only a short time, others immediately appear. In your opinion, what are the reasons?
Nguyen Khac Hieu: The reasons come from the interest groups. First, it is poor management. They cannot manage them, so they create sub-licenses to restrict businesses to participate.
Second, sub-licenses are created for the benefits of some agencies. If they are cleared, agencies cannot benefit from them any longer.
The story of our AZ above is an instance. Sub-licenses are created to get their palms greased.
To eliminate sub-licenses, a huge consensus among ministries and agencies is needed. The State needs to listen to the businesses to adjust the policies.
It is increasingly difficult for businesses to shoulder the burden of extra costs while business freedom is being tightened.
Thank you very much!
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